With a new business-friendly administration starting today in the US, as you think about tangible investments like real estate don’t forget about other forms of investing like stocks, bonds, and index funds. Investing in index funds is a smart way to build wealth over time. These funds offer diversification, low fees, and the potential for solid returns. As we step into 2025, here are the top five index funds to consider for your investment portfolio:
– **Vanguard S&P 500 ETF (VOO)**
The Vanguard S&P 500 ETF is a popular choice for investors looking to gain exposure to the largest companies in the U.S. This fund tracks the S&P 500 index, which includes 500 of the largest U.S. companies. With a low expense ratio of just 0.03%, VOO is an excellent option for long-term investors.
– **Fidelity 500 Index Fund (FXAIX)**
The Fidelity 500 Index Fund is another great option for those looking to invest in the S&P 500. This fund has a slightly higher expense ratio of 0.015%, but it offers a strong track record of performance and is a solid choice for any investor.
– **Schwab Total Stock Market Index Fund (SWTSX)**
For investors seeking broader market exposure, the Schwab Total Stock Market Index Fund is an excellent choice. This fund tracks the entire U.S. stock market, providing exposure to large, mid, and small-cap stocks. With an expense ratio of 0.03%, SWTSX is a cost-effective way to diversify your portfolio.
– **Vanguard Total Stock Market ETF (VTI)**
The Vanguard Total Stock Market ETF offers comprehensive exposure to the U.S. stock market. This fund includes large, mid, and small-cap stocks, making it a well-rounded option for investors. With a low expense ratio of 0.03%, VTI is a top choice for those looking to invest in the entire market.
– **iShares Core S&P Total U.S. Stock Market ETF (ITOT)**
The iShares Core S&P Total U.S. Stock Market ETF is another excellent option for investors seeking broad market exposure. This fund tracks the S&P Total Market Index, which includes a wide range of U.S. stocks. With an expense ratio of 0.03%, ITOT is a cost-effective way to invest in the U.S. stock market.
With all investments speak with your financial advisor and see if this investment vehicle is right for you!
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