1 No-Brainer Growth ETF to Buy With $500

Most investors are aware of at least some of the benefits of exchange-traded funds (ETFs). These funds have some big advantages over other financial instruments like mutual funds and individual stocks, including cost efficiencies and diversification. It's hard to beat the ability to buy hundreds of stocks with a single purchase order, after all.

A less-discussed advantage is price. Buying an ETF gives you exposure to stocks you might not be able to purchase outright if your broker doesn't allow you to buy fractional shares in a company. If you have just $500 to invest, for example, you might not be able to purchase a share of , Costco, or Nvidia stocks. There's a popular Vanguard ETF that owns all these growth businesses, though, and it is available for much less than $500 per share.

The fund in question is the Vanguard Growth Fund ETF (NYSEMKT: VUG). The first thing to know about it is that the fund is index-based, meaning it doesn't employ expensive mutual fund managers. That approach makes it incredibly cheap compared to those actively managed funds. You'll pay expenses of just 0.06% to own it.

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Source Fool.com