A Simple Way To Diversify And Maximize Your Money With A Single Total Stock Market Index Fund.
Previously, I showed you how to diversify your portfolio with a seven-fund approach. In this article, I'm going to simplify investing even more. I will show you how to build wealth and diversify your portfolio with just a single total stock market fund!
Total stock market index fund: a match made for diversification
I previously stated that if you want to invest in America's 500 largest companies, you simply need to invest in an index fund that tracks the S&P 500 index. But if you want to go beyond America's 500 largest juggernauts, a total stock market fund is the better way to go. A total stock market fund does exactly what its name says: it spreads investors' money across the entire stock market, including large companies, mid-cap companies, small companies, among others. Because they are index funds, total stock market index funds are very cheap with extremely low expense ratios. Here are 3 U.S. total stock market index funds you may want to consider for your portfolio. They are arranged in no particular order or preference. Information presented below is current as of 6/2/19.
Fund Ticker | Fund Name | Expense Ratio (%) | Number of Stocks | NAV (net asset value) |
FSKAX | Fidelity Total Market Index Fund | 0.015 ($1.5/year for each $10,000) | 3392 | $77.95 |
VTSMX | Vanguard Total Stock Market Index Fund | 0.14 ($14/year for each $10,000) | 3579 | $68.49 |
SWTSX | Schwab Total Stock Market Index Fund | 0.03 ($3/year for each $10,000) | 3070 | $48.34 |
The bottom line
Investing doesn't have to be complicated or expensive. If you don't know anything about investing and want to take matters into your own hands, you can never go wrong with a total stock market index fund. Once you have purchased one, you only need to sit back and watch your money grow.
If you prefer to leave investing to the pros, here are a few investment brokers and robo-advisors I think will suit your needs.
- Wealthsimple. This robo-advisor will help you diversify your investment portfolio across the entire market, using low cost ETFs. They even show you how much your money can grow with their simple-to-use investment simulation calculator. Start investing with Wealthsimple today.
- Acorns. This robo-advisor allows individuals to become investors with the simple use of an app. Check out these Acorns reviews or invest with Acorns.
Like this article? Please share and leave us your feedback in the comment section to help us improve and grow. Subscribe below to get our latest articles. Here are a few more articles you may find useful: How to buy and invest in marijuana stocks | Acorns reviews: How to earn free money | Maximize your returns with this 7-fund investment portfolio | How to fight mutual fund separation anxiety disorder | How to invest in real estate without buying physical properties.
Related Posts
Comments
By accepting you will be accessing a service provided by a third-party external to https://newvestor.com/