Investing Made Easy with Low Expenses
Investing Made Easy with Low Expenses
Many people want to invest with minimal hassle. One of the simplest and most effective ways to do this is by contributing regularly to low-cost ETFs and mutual funds, which aggregate hundreds or thousands of stocks into a single investment.
These funds can be purchased easily through platforms like E*TRADE, Vanguard, or Fidelity. Historically, about 90% of actively managed funds underperform the S&P 500 over the long term (source).
Here is perspective from Warren Buffett: Warren Buffett: How To Turn $10,000 Into Millions (Simple Investment Strategy)
The key to successful ETF investing is:
- Long-term holding (20+ years)
- Not selling during downturns
- Reinvesting dividends for compound growth
An additional benefit: many of these funds have high dividend yields, boosting your total real return. You can evaluate total return performance here: TotalRealReturns.com
📈 Recommended Low-Cost ETFs & Mutual Funds
Diversified U.S. Funds
- VOO – Vanguard S&P 500 ETF (expense ratio: 0.03%)
- Tracks the 500 largest U.S. companies
- FXAIX – Fidelity S&P 500 Index Fund (expense ratio: 0.015%)
- Mutual fund alternative to VOO
- VTI – Vanguard Total Stock Market ETF (expense ratio: 0.03%)
- Covers the entire U.S. stock market
- FSKAX – Fidelity Total Market Index Fund (expense ratio: 0.015%)
- Mutual fund version of total U.S. stock exposure
International Diversification
- IXUS – iShares Total International Stock ETF (expense ratio: 0.07%)
- Non-U.S. developed and emerging markets
- VXUS – Vanguard Total International Stock ETF (expense ratio: 0.05%)
- Vanguard version of above
- FZILX – Fidelity ZERO International Index Fund (expense ratio: 0.00%)
- Mutual fund with zero fees, international focus
📌 Note: International funds are included to diversify outside of the U.S., as it’s uncertain whether U.S. stocks will continue to outperform global markets indefinitely. I’ve provided both Vanguard (V) and Fidelity (F) versions since many 401(k) accounts limit your broker options.
- Mutual fund with zero fees, international focus
🚀 Higher Growth Fund Options (More Volatile)
These ETFs focus on high-growth sectors or subsets of the market. They may outperform in bull markets but tend to decline more sharply during downturns.
- VGT – Vanguard Information Technology ETF (expense ratio: 0.09%)
- VUG – Vanguard Growth ETF (expense ratio: 0.04%)
- QQQM – Invesco Nasdaq 100 ETF (expense ratio: 0.15%)
- XLK – Technology Select Sector SPDR Fund (expense ratio: 0.09%)
📢 Coming Soon
I’ll be writing separate blog posts on other asset classes you can invest in — including bonds, real estate, crypto, and alternative strategies — so stay tuned!