Small Investments Can Pay Off Big: VOO, IJR, QQQM,IJH, IXUS
By Tracey Ryniecof Zacks.com
Just take these ETFs as watchlist, after a shorterm reversing, find better opportunities to your investings.
This week, Tracey is going solo to talk about how small amounts of cash can really add up in stock investing. And now, more than ever, there are investing apps that allow you to start investing with little money down.
Acorns is one of those. It’s the investing app that helps you save and invest your spare change. They have a feature called “round-ups” which automatically invests spare change into a diversified ETF portfolio.
Investing in a Basket of ETFs
Acorns uses ETFs to create portfolios based on what your investing goals and tolerance are. The stock ETFs are basic index ETFs with low fees. Below are some of the ETFs that investors can use to create their own basket.
1. $Vanguard S&P 500 ETF(VOO)$
The Vanguard S&P 500 Index ETF is one of the most popular ETFs on the market. Tracey owns it in her own personal portfolio as it has a low expense ratio of just 0.03%.
Year-to-date the Vanguard S&P 500 Index ETF is down 12.4% but it has a 5-year annualized return of 12.79%.
It pays a dividend, yielding 1.6%.
You don’t have to have an Acorn account to invest in it. The Vanguard S&P 500 Index ETF is available through most of the big brokerages.
2. $iShares S&P SmallCap 600 ETF(IJR)$
The iShares S&P Small Cap ETF is a basic small cap fund with 679 holdings. While it’s not a value fund, it has an average P/E of 13.6.
The iShares S&P Small Cap ETF has fallen 10.3% year-to-date but has a 5-year annualized return of 7.2%.
It’s expense ratio is just 0.06%.
If you’re looking for exposure to small caps, the iShares S&P Small Cap ETF covers the basics.
3. $iShares S&P 400 MidCap ETF(IJH)$
The iShares S&P Mid Cap ETF is similar to the Small Cap ETF above in that it is a basic fund with an expense ratio of 0.05%.
It has 405 mid-cap holdings and a forward P/E of 14.6. The iShares S&P Mid Cap ETF has a dividend yielding 1.6%.
The ETF has fallen 10.5% year-to-date.
The iShares S&P Mid Cap ETF also covers the basics. You don’t have to get fancy in stock investing.
4. $iShares Core MSCI Total International Stock ETF(IXUS)$
Looking for international stocks? The iShares Core MSCI Total International Stock ETF has 4,312 holdings including some of the world’s largest companies like Taiwan Semiconductor, Nestle, Tencent, Shell and LVMH.
The iShares Core MSCI Total International Stock ETF has a nice dividend, currently yielding 2.7%.
Shares are down 15.8% year-to-date. It has a P/E of 12.5.
Should investors add international exposure by using the iShares Core MSCI Total International Stock ETF?
5.$Invesco NASDAQ 100 ETF(QQQM)$
One of the most famous ETFs has to be Invesco’s Nasdaq 100 ETF, known simply as “the QQQ.” But did you know that Invesco launched a “mini” version with the same holdings but a lower share price?
The Invesco Nasdaq 100 ETF, the QQQM, has 104 holdings. You will pay an expense ratio of 0.15%.
Year-to-date, it’s down 20.3% but it now has a P/E of just 21.5.
Should you be dollar cost averaging into the Invesco Nasdaq 100 ETF?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Great , good read
That's is good.