First-Time Investors Can't Figure Out Which ETF to Buy
Young, inexperienced investors are struggling to navigate the complexities of investment options, particularly ETFs and stocks. They feel lost, confused, and unsure where to begin, seeking guidance on asset allocation, diversification, and long-term strategies. Many are researching independently but desire personalized advice and a clearer path forward.
SOURCES (60)
“Hey everyone, I’m in my early 20s and recently started investing in the S&P 500 , putting €500/month into it. I’m a full‑time master’s law student, work part‑time (around €1,000/month) . I still live with my parents, so my expenses are minimal. Right now I…”
“I want to purchase a S&P 500 index fund through ML, but the reinvestment options are confusing me. Can someone simply explain the difference between: Capital Gains and Dividends and Capital Gains Only. Also the tax implications. (There is a cash option, but i understand that one.) submitted by /u/DustyIsGreat [link] [comments]”
“Hallo, Is there a way to invest in ETFs? Atm I'm investing in individual stocks, which works ok. But I would much rather put my money in an ETF and let it do its work. Or at least have both options. I can't open an American bank account and don't have an American number, cause I'm abroad. Is there a way? Can you outsmart the system without falling into the PFICs trap? I'm very likely to move back but that's something in the far future and it doesn't really make sense”
“I’ll be moving $40k into a taxable brokerage account from my HYSA which I have overfunded. Emergency fund won’t be touched. I’m weighing options to “VT and chill” verses holding VTI & VXUS. VT - My understanding (and correct me if I’m wrong) is that holding VT won’t allow me to claim the Foreign Tax Credit. - I also understand that having VT won’t require me to rebalance which is where the “chill” comes into place. VTI + VXUS - VTI + VXUS will have a very slight advantage in expense ratios d”
“I’m 37 and trying to figure out the best place to put a fairly large amount of money that is currently sitting in a CD. Here is what I have now: $380k - 2050 target date fund $262k - fidelity 500 index fund $220k - CD $45k - hysa $15k - checking House is paid off Single no kids The CD is expiring at the end of this month. I want to invest it somewhere and can’t decide where I want to invest it. Please give me your ideas! submitted by /u/Cold-Spread-2839 [link] [comments]”
“In particular I'm looking for a efficient income focused one and a growth div type of thing. Trying to limit CC funds also. submitted by /u/Logical_Rip_7168 [link] [comments]”
“The market is cyclical and there are always ups and downs. Do NOT try to time the market; you’re almost guaranteed to get it wrong. Look up “Bob the world’s worst investor” and read that story. It is fiction but they put actual stock market numbers behind it to illustrate the point. The absolute best thing you can do in the stock market is to put the money in and then leave it there through the cycles. By the time you retire it will have recovered and grown, but if you pull the money out the cha”
“Want to like the fund & keep investing into ( along with SCHD) but given its track record with minimal to negative dividend/annual payout growth rate some years as of late past couple years ....seems pointless. Understandably its in alot of low yield growth companies that will in long run make more money in capital appreciation (even tho same can be said just investing in large cap growth etf instead to chas even higher CA)...but in reference screening top 15~ stocks (not including stocks th”
“Sounds like you want a taxable brokerage account, not a retirement account, that's the one with no withdrawal restrictions and no tax advantage, a broad index fund like a total market or S&P 500 fund is the standard starting point there”
“It doesn’t sound like trading is mentally healthy for you. I would check out r/Bogleheads . There are very simple ways to build wealth without all of the anxiety and gambling aspects. For instance nearly all of my money is in total market index funds and I check it maybe a few times per year. Some smaller amount I keep on the side so I can pick individual stocks for fun. In the time I’ve been investing (which does not include the ‘08 crash) I’ve never once felt fear or anxiety about how they are”
“You're taking a risk you're subconsciously uncomfortable with. Buy something safer like global ETF's and be bored to death watching your portfolio go up slowly and steadily. It's what I had to do 🤷”
“I did that too until I moved my money to an index fund. Less volatile. Little chance of moving it on a whim.”
“That sounds like a reasonable direction. Just keep in mind that a publicly traded REIT ETF and private fractional real estate solve very different problems. A REIT ETF can normally be sold during the trading day, but its value can still be down when you need the money. A private fractional offering may involve multi year holding periods, limited or discretionary redemptions, platform or sponsor risk, and additional fees depending on its structure. If access to the money is your main concern, the”
“Tradiational brokerage. The swings of the stock market can be scary, but it goes up. At 22, you should trying to get 10% YOY returns easy. Others will downvote and say this is gambling and irresponsible. They aren't all wrong. But you're also 22 and can afford high risk with some of your liquidity. CDs and HYSAs are not it. Go ask Dave Ramsey.”
“22M just got 50k job starting to build emergency fund and gonna start putting half of that into investments etfs and stuff because I don’t know trades yet so I’m just doing the safe route but I also worked on my credit and I have perfect record with some Decent history on it and 784 score what else should I be doing or doing differently to maximize my wealth for the future I also pay no rent just random bills and food and what not maybe like 1k a month submitted by /u/Training_Square”
“The Buffet approach is to buy great companies and hold, theoretically, forever as they compound. But as a small investor, does that make sense? Especially in retirement accounts where you don't pay taxes for selling. For example, I am up about 40% on Salesforce, a great company I could hold forever. But it will transition to a slow-grower due to its size. Would it make more sense to reallocate to faster growing companies or companies that are grossly undervalued? Is the compounding effect of”
“I have about $80,000 saved in the bank and am looking for some feedback on how to allocate it. For reference, the ETFs/mutual funds below are islamic-compliant investments that perform similarly to the S&P 500, except they screen out industries that aren’t considered permissible in Islam, such as gambling, weapons/war, alcohol, etc. Here’s how I am currently thinking of splitting it up: UIF Savings Account: Used Car Purchase ($10,000)+ 6-Month Emergency Fund ($12,000): $24,000 ~ 30% SPUS (ET”
“Hi everyone! I’m 25 and looking to build some passive income alongside my full-time job. I’m a complete beginner when it comes to investing and recently opened a Robinhood account. Since I’m currently living with my parents, I only pay small amount for household expense, so I’m able to save around $1,500 - $2,000 per month for investing. I’m mainly interested in long-term dividend stocks and would really appreciate any recommendations on which stocks I should buy. Thanks in advance! submit”
“Hello everyone, I’m an 18-year-old currently investing to pay, at least partially, for a PPL (~$14-15k USD) after 4 years of tertiary education. My general strategy is to have some dividends funds and ETFs, and to reinvest the income from dividend funds + a part time job (~200 USD / month). I currently have ~$7300 USD invested in the stock market. I would like some input on whether what I’ve invested in is a viable option, or if changes need to be made. Thank you! submitted by /u/Sno”
“I keep finding myself more attracted to a portfolio that is VTSAX and VUSXX - about 75/25 (I am a 40 year old male with a stable job) - that would ladder to maybe 65/35 by age 55. After 2022, I just don't see the upside to bonds anymore over a treasuries fund given the risk, which is a safer cash ballast (plus, I live in NY state which puts taxes capital gains at the top marginal income rate). Is this crazy? What am I really missing? I feel like 1-2% extra growth per year on a bond fund with”
“Hey everyone! I'm 19 yo looking to start investing for the first time in my life. I've been doing some research and I have a question: does it make sense to put all my money into VOO now and some time later start buying VXUS as well? Sorry if it's a dumb question. submitted by /u/Burgonya1 [link] [comments]”
“I've always been taught to work hard and save your money. It's what my parents did and their parents before them. It's good advice to an extent but I feel the only one really benefiting from my money being in a savings account is the bank. I currently get about 2.2% on my savings which isn't a great return. I hope to change that and my first step was to put £20,000 in a tax-free Stocks and Shares ISA. The plan is to park the money there and pick a low risk investment option, then”
“Hi! Mid 20s, looking to open a market invested account that isn't a 401k so that what I put in could be used for buying a home if I decide to go that route in my 30s, or otherwise accessed before I'm a senior citizen. I contribute to a pension but it's not market invested so I will only end up getting out what I put in and would rather have my own separate account invested, with some flexibility to use it depending on where life takes me. I know I can just go to Fidelity and open ret”
“I wanna invest around 500 - 1000 monthly where can i , Currently investing in paytm gold SIP 500 WEEKLY . I wanna invest need guidance . Pleae help submitted by /u/Only-Background1820 [link] [comments]”
“Don’t laugh at me this is a legit question. I have never done it before nor do I even know where/how to begin doing it! So I’m asking for Advice on how to go about start learning how to invest in a reputable Stock and for someone to explain how it all works, what Stocks are good ones to invest in etc. Thank You! submitted by /u/Mother-Secretary-445 [link] [comments]”
“How do you know which ones to go for? I always try to figure this out but get overwhelmed, and then struck with analysis paralysis”
“Hi all, I came across this sub while researching investments. Posting here rather than in the other investing subs because I'm a very risk averse person and tend to agree with the Jack Bogle philosophy. Current college student looking to get into safe investing because I'd prefer my money make 8-10% a year on average in safe ETFs and mutual funds such as VOO rather than the 3.XX% I currently make in HYSA. I've never had a non-retirement investment account and my Roth IRA is through V”
“Until very recently I was thinking of moving back to North America so I had VTI/BND portfolio. Now I need to change my portfolio entirely because I am never moving back to avoid the withholding taxes. I am thinking 50%vwra, 20% cspx, 30% exus Appreciate any opinions. submitted by /u/AdventurouslySafe [link] [comments]”
“Hello all! I am municipal firefighter and want to get everything squared away early in my career. I am 24 YO, not married nor kids. Here are my current options/investments Automatically taken from every paycheck would be my pension. This is a non-negotiable 11% taken. There is a deferred comp 457b plan. You can set $ or %. I have it set at 10%. I also have a roth IRA that i recently started, and i will be contributing every paycheck to max it out from here on out. After taxes and deferred comp,”
“I’m (-18) and realized I know nothing about stocks, investments, or anything like that. I’ve heard people talk about “day trading” or “getting rich quick” from influencers on TikTok/Instagram, but honestly, it feels too risky and sketchy to trust. I don’t want to lose money or get scammed. So, what’s the best way to start investing as a total beginner? Are there any trustworthy websites or platforms that are actually beginner-friendly? I’m in the U.S., if that matters. I’ve seen people talk abou”
“Like many people, my ira is a snp500 index fund that I won’t touch for another 20years. As I’ve learned about options, it seems like it would make sense to regularly sell a put spread from spot to 90% of spot in the account. This would allow me to harvest additional equity risk premium without exposing myself to the catastrophic risk of an uncapped put. Is this a well understood strategy in the options world? Does anyone else do this? I found OVL does this with some success, but has high fees. I”
“Newer investors often think "buy low, sell high" is the whole game, but that's really just half of it. I put together a breakdown of the two core ways stocks generate returns: Capital appreciation — profiting when a stock's price rises above what you paid (think growth names like Amazon or Nvidia in their early years — no dividends, pure price growth). Dividend income — steady cash payments just for holding shares, common with mature companies like Coca-Cola or J&J. Covered”
“I don't know much, but I know what dividends are. I know what ETFs are. I am just confused on dividend ETFs, especially on like managing them for taxes, drip, etc. currently my few dividend stocks give me a dividend and I that money just mixes with other money I manually invest. Do drip ETFs just automatically keep building? Are there management differences between like SCHD, JPEQ, etc? I guess I am looking for a guide to dividend ETFs that is not just like risk and yields, but also managing”
“First off, stop gambling. Sports betting is gambling. It's a terrible habit. Second, no investment is "safe". There is always a risk of loss. ETF's and mutual funds are great options. Look for broad market with low expense ratios. I recommend looking into r/bogleheads for further information on the topic.”
“I am 21 years old from canada and I want to be saving/growing my money by making safe investments such as index funds etc. I don’t have much knowledge but I want to be contributing 100$ bi weekly. I will be using wealth simple anyone willing to explain a little? Thanks submitted by /u/Wide_Word_3269 [link] [comments]”
“I (19M) Just started investing after seeing how little my bank savings account generated. Was looking for something that I could treat similar to the savings account where I put my money and with minimal tweaking watch it grow. I was wondering about what stocks I should look into first. I have about 3000$ to start with. submitted by /u/Low-Relationship1978 [link] [comments]”
“You skipped a few questions with that response. Particularly how much income/spend you are looking for, and what was your bad experience with the stock market which is up some 12% a year for the past 5 years.”
“Hey everyone, I’m 22 years old and I recently have gotten into a better position financially and I’m looking to finally get into doing investing each month and have a recurring contribution to put towards investing, taking things more seriously. I’ve seen a lot of people’s comments and their opinions on what people should be putting their money in, I’m thinking of mainly investing into VOO and SCHD together with an almost 50/50 percent contribution towards both. Probably start with a $400 contri”
“Hey everyone, I’m 22 years old and I recently have gotten into a better position financially and I’m looking to finally get into doing investing each month and have a recurring contribution to put towards investing, taking things more seriously. I’ve seen a lot of people’s comments and their opinions on what people should be putting their money in, I’m thinking of mainly investing into VOO and SCHD together with an almost 50/50 percent contribution towards both. Probably start with a $400 contri”
“Make the assumption that retirement plans are taken care of, in a Brokerage Account, does it make sense to hold both ETFs or simply choose only one? submitted by /u/PredictionAnalyst [link] [comments]”
“So (as you might imagine) my income is inconsistent. I’m looking to create some stability through a dividend portfolio, but might have taken “it’s best to diversify!” to an extreme. I’m new here and would love any advice on what to cut/trim/add. I’m 47 years old and it’s a taxable account. Here are my holdings: JEPQ (largest), JEPI, CSWC, TRIN, PFLT, DX, VCIT, MAIN, O, MAGY, TOPW, YMAX, CHIPY, YMAG, UTLY, QDTE, XDTE, RDTE, MSTY, HRZN, PSEC, ORC, IVR, ARR, AGNC, EFC, GLAD, GOOD, GAIN, OBDC, NLY,”
“I have ~$10k in a HYSA i am planning to put into the market. I am considering going lump sum DCAing over 6 months, allocating monthly. Curious what this sub would recommend, and also curious of your thoughts on this portfolio breakdown. I am bullish on AI in the next 6-12 months (will keep and eye and rebalance as market conditions change), and bullish on nuclear and psychedelics as a therapy over the long term (>5 years). Any suggestions or thoughts on this portfolio - time frame is minimum”
“I have ~$10k in a HYSA i am planning to put into the market. I am considering going lump sum DCAing over 6 months, allocating monthly. Curious what this sub would recommend, and also curious of your thoughts on this portfolio breakdown. I am bullish on AI in the next 6-12 months (will keep and eye and rebalance as market conditions change), and bullish on nuclear and psychedelics as a therapy over the long term (>5 years). Any suggestions or thoughts on this portfolio - time frame is minimum”
“Not sure which app to use. I don’t really want to use robinhood. Which is the best user friendly app to start investing in the DOW and Vanguard? submitted by /u/AlrightDropEm69 [link] [comments]”
“Hi everyone, I currently have approximately 85% invested in VWCE and 15% in AVWS. However, I was quite interested in Vanguard’s new ETF, VALL, so I am now considering how I might adjust my portfolio (my investment horizon is more than 30 years). I see three options: Replace VWCE with VALL while keeping my factor exposure through AVWS, continuing with an approximate 85/15 allocation. Sell everything and keep only VALL, thereby investing exclusively in a global all-cap ETF. Sell only VWCE, keep AV”
“Hey everyone! For those with 529s for their kids, are we choosing target date funds or going for the s&p500 equivalent? If we're choosing the latter, do you switch to TDF (to capture some bonds) a little later? If yes, at what age? Assume that these funds will be used for college at 18, maybe 20 if opting for cc to university path. If we're choosing a TDF, are we going for the one maybe 5-10 yrs out from their actual usage date? Like they're going to college 2035, so choosing a 2”
“I need some pointers please submitted by /u/Electronic-Trick-366 [link] [comments]”
“My grandparents are both over 70 and will have about $70k from the sale of their home in Asia. They want to invest it primarily for monthly income so I’m considering income-focused ETFs like JEPI, JEPQ, SCHD, etc. If this were your grandparents, how would you invest the $70k to generate the most reliable monthly income without taking on excessive risk? Would you go all-in on something like JEPI or is there any better stock for this purpose? submitted by /u/Remote-Toe8553 [link]”
“27F. I'm a beginner with an understanding of the basic concepts and have dabbled. I'd like to learn more about what drives the market, and more on types of Index Funds / ETFs etc. My sibling works in Finance and I'd also like to be able to have a better understanding in our discussions. Ideally something that's still reasonably digestible. I had a look at the book list but note it was updated three years ago, and the most popular book on this topic (Bogleheads) is twelve years ol”
“Hello my friends, as someone new to income investing, I'm trying to learn as much as I can so I can begin the long journey of building up passive income like many of you have. What would you recommend as sources that help break this all down for someone attempting to learn? For a little more information about myself, I'm looking to invest $100 a week (I may be able to do more in the future but this is what I'm starting with) to one day be able to get some passive income to supplement”
“Know it’s only a small dividend but only started this month, plan to DRIP everything submitted by /u/longlivewrestling [link] [comments]”
“UK-based investor, not a professional. Investing for growth with a roughly 3–5 year horizon. 70% VWRP — Vanguard FTSE All-World UCITS ETF (Acc) 15% VXUS — Vanguard FTSE All-World ex-US UCITS ETF (Acc) 10% WLDS — iShares MSCI World Small Cap UCITS ETF (Acc) 5% SGLN — iShares Physical Gold ETC Idea: global core + slight ex-US tilt + small-cap tilt + small gold hedge. (50-50 Us/non-US) What do you think of this allocation? Would you change or simplify anything? Any obvious overlap or unnecessary ex”
“I've traditionally been a VOO investor, but thinking of moving a large portions of my investments into SCHD. Reasoning is in a potential market downturn, i'd rather be in cash flow postive companies, then even voo where its dominated by ai dependent faang companies. So in a theoritical drop of sp500 of 50%, a schd may only drop 35-40% in theory. I still want to be in equities, but essentially moving to value driven equities. what do you think of this thought process? submitted by &”
“My research shows T-bill easy to buy via brokerage. Easy to sell. Highest take home return. Some brokerages auto rollover, some don't after maturity. CD. Easy to buy, not easy to sell, medium return as it's state taxed. SNSXX, FDLXX. Easy to buy, sell. Lowest return even though they are not state taxable. Neither of these options will complicate the tax work. The information is just reported on 1099-div, 1099-int for all of these, and easily digested by TurboTax. I wanted to try t-bill t”
“You talking about navy federal investment services? If yes, what are you curious about? It’s a barebones investment offering, not extensive as fidelity or Schwab but I like it as I’m largely a simple investor. The 3.50 monthly fee pisses me off and should be removed imo but it doesn’t annoy me enough to move my little accounts. I like having everything under navy umbrella”
“I have a tiny bit of money (about 1k) and I was wondering if its a good idea to put it all into stocks like KHC and UPS or if I should do the SCHD for growth (with DRIP.) I don't need constant income I will probably pull it out in 2 years or so but I was wondering if you ppl think dividends are the best to go with or if I should just go with some large cap ETFs. I also will be able to contribute more later if it goes well. submitted by /u/HovercraftGlass2032 [link] [comment”