What Is an ETF? I Think It's the Single Best Starting Point for New Investors.
VOO and QQQM provide instant diversification and long-term safety.
Overview
Many long-term investors consider the stock market to be the greatest wealth creator in the world. Since its inception in 1957, the S&P 500 (SNPINDEX: ^GSPC) has generated an average annual total return of about 10.5%. A $1,000 investment in the index, with reinvested dividends, would be worth more than $1 million today. That's equivalent to about $85,000 in 1957 dollars.
For most investors, it makes more sense to invest in the entire S&P 500 index, which is rebalanced quarterly to track the 500 largest U.S. companies, rather than in individual stocks. For growth-oriented investors, it might be smarter to invest in the Nasdaq-100, which includes the 100 largest non-financial stocks listed on the Nasdaq Composite (NASDAQINDEX: ^IXIC).
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Originally published at www.fool.com.