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How Should a Beginner Invest in Stocks? Try This Index Fund.

The Motley Fool

You often hear about particular stocks -- market stars of the moment -- that have soared. Nvidia 's a great example of today's star, climbing 215% over the past year thanks to its dominance in the artificial intelligence (AI) chip market. It doesn't even require a huge investment. Let's find out more.

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

The Motley Fool

It doesn't take much money to get a lot out of investing. Give the stock market enough time, and compounding will take good care of you. But what if you had just $500 to kick-start your investing portfolio? An index fund -- designed to track a specific market index -- would be an excellent choice to start.

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How Should a Beginner Invest in Stocks? Start With This Index Fund.

The Motley Fool

The most important part of investing is just getting started. Let's dig into why that is, and how even beginners can get ahead in the stock market. Where's the best place to invest it? Each share of the fund is made up of fractional amounts of many different stocks. Why invest in the SPDR S&P 500 ETF?

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

The Motley Fool

One of the biggest misconceptions about investing is that you need a ton of money. Even $500 is more than enough, and it can grow to thousands of dollars if you pick a good investment and give it time. Now, imagine if you made that investment again and again over the years. These funds are built to mimic a stock market index.

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

The Motley Fool

But it is important to recognize that starting small doesn't mean you can't build a good stock portfolio. If you have as little as $500 to invest in stocks, this is the index fund you should consider putting it in. But this S&P 500 isn't just a random collection of stocks. Here's why. economy proxy.

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These 2 Index ETFs Are a Retiree's Best Friend

The Motley Fool

If you don't want monitoring your investment portfolio to become your new full-time job, the Vanguard Total Stock Market Index ETF (NYSEMKT: VTI) and Vanguard Total Bond Market Index ETF (NASDAQ: BND) are two exchange-traded funds (ETFs) you'll want to get to know very well. Aggregate Float Adjusted Index.

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Stock Market vs. 5% CD: How Much $5,000 Grew Over the Past 2 Years

The Motley Fool

Here's how much a 5% CD would have earned you over the past two years compared to the stock market's gains. The stock market trounced CDs Let's assume that two years ago, you put $5,000 into CD earning 5% APY, and another $5,000 went into your brokerage account to buy a low-cost index fund that tracked the S&P 500.