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Got $500 to Invest in Stocks? Put It in This ETF.


One of the best things to happen to stock investing, in my opinion, is the creation of exchange-traded funds (ETFs). Investing experts have long preached the importance of diversification. But before ETFs arrived on the scene, this would generally involve purchasing dozens of individual stocks, which could be time-consuming and discouraging.

Thanks to ETFs, this is no longer the case, and you can invest in dozens, hundreds, or even thousands of companies with a single purchase. This gives you a chance to easily achieve diversification. If you have $500 available to invest, one ETF can be the complete package: the Vanguard S&P 500 ETF (NYSEMKT: VOO). It provides both growth opportunities and dividend income.

Much of the appeal of the Vanguard S&P 500 ETF is the fund's diversification. There are 11 major sectors in the U.S. stock market, and the Vanguard S&P 500 ETF contains companies from each one:

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Source Fool.com

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