The Motley Fool Take
If you don’t have the time, interest or skills to research and invest in individual stocks, consider index funds, which track various stock (or bond) indexes and generally sport low annual fees. Over the 15 years ending in December 2019, the S&P 500 index of 500 of America’s largest companies outperformed fully 90% of U.S. large-cap stock mutual funds.
Exchange-traded funds make index-fund investing extra easy. They trade like stocks, and you can buy as few or as many shares as you want through your brokerage. Here are a few promising ones with low fees:
- The SPDR S&P 500 ETF tracks the S&P 500 itself.
- The Invesco QQQ Trust ETF tracks the Nasdaq 100, so it invests in the 100 largest mostly nonfinancial companies in the world; these include technology giants such as Apple, Microsoft, Amazon, Facebook and Google parent company Alphabet.
- The Vanguard Total Stock