Building Wealth with Small Stakes

Saturday 5th of April 2025 08:50:00

Three Growth ETFs to Buy with $500 and Hold

Investing in the stock market can be intimidating, especially for beginners. However, with a little guidance, you can start building your portfolio with just $500. In this article, we'll explore three growth ETFs that are perfect for beginners and can help you grow your wealth over time.

Growth ETFs are designed to track the performance of a specific market index, such as the S&P 500, and are composed of a mix of large-cap, mid-cap, and small-cap stocks. They're a great way to diversify your portfolio and potentially earn higher returns than a traditional savings account.

Here are three growth ETFs that are perfect for beginners and can be bought with just $500:

  1. Vanguard Growth ETF (VUG)

The Vanguard Growth ETF tracks the performance of the CRSP US Growth Index, which is designed to measure the performance of large-cap and mid-cap growth stocks. This ETF has a low expense ratio of 0.04% and has consistently outperformed the broader market over the past decade.

  1. Schwab U.S. Broad Market ETF (SCHB)

The Schwab U.S. Broad Market ETF tracks the performance of the Dow Jones U.S. Broad Stock Market Index, which is designed to measure the performance of the entire U.S. stock market. This ETF has a low expense ratio of 0.03% and is a great way to get exposure to the entire market with just $500.

  1. Invesco PowerShares QQQ ETF (QQQ)

The Invesco PowerShares QQQ ETF tracks the performance of the Nasdaq-100 Index, which is designed to measure the performance of the 100 largest and most actively traded non-financial stocks listed on the Nasdaq market. This ETF has a low expense ratio of 0.20% and is a great way to get exposure to the technology sector with just $500.

How to Buy These ETFs with $500

Buying these ETFs with $500 is easy. You can start by opening a brokerage account with a reputable online broker, such as Fidelity, Charles Schwab, or Vanguard. Once you've opened your account, you can search for the ETF you want to buy and enter the amount you want to invest.

For example, if you want to buy the Vanguard Growth ETF with $500, you can search for the ETF and enter the amount you want to invest. The brokerage firm will then use your funds to buy a specific number of shares of the ETF based on the current market price.

Tips for Beginners

If you're new to investing, here are a few tips to keep in mind:

  • Start small: You don't need to invest a lot of money to get started. Even $500 can be a great starting point.
  • Diversify: Spread your investments across different asset classes, such as stocks, bonds, and ETFs, to minimize risk.
  • Be patient: Investing is a long-term game. Don't expect to make a quick profit, but instead focus on building your wealth over time.
  • Educate yourself: Learn as much as you can about investing and personal finance to make informed decisions about your money.

Conclusion

Investing with just $500 can seem daunting, but with the right ETFs and a little guidance, you can get started with ease. The three growth ETFs we explored in this article are perfect for beginners and can help you grow your wealth over time. Remember to start small, diversify your portfolio, be patient, and educate yourself to make the most of your investments.