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5 simple ETFs to buy with $500 and hold for a lifetime

5 simple ETFs to buy with $500 and hold for a lifetime

Host David Asman reports on a strong market day. with the Dow Jones Industrials reaching 52,000 for the first time ever. SpaceX's stock surged over 16%, surpassing Amazon in total market capitalization.

There's a misconception that people need thousands. thousands of dollars before they can startinvesting.But in today's world, brokerage accounts can be opened with no initial deposit required, and you can start by buying just one share. That means in many cases your investing journey can start with less than the cost of a DoorDash delivery!

Whether you're looking to get started or add to an existing portfolio, ultra-low-cost index ETFs are usually the best choice. Many of these give you broad market coverage and make for great core long-term portfolio holdings.

Here are five of my favorites that combine low fees, diversification, smart index construction, and solid long-term track records.

COULD THE VANGUARD S&P 500 ETF BE YOUR TICKET TO BECOMING A STOCK MARKET MILLIONAIRE?

A trader works at his post on the floor at the New York Stock Exchange (NYSE) in New York City. on June 1, 2026.(Brendan McDermid/Reuters)

The Vanguard Total Stock Market ETF is perhaps the best coreETFyou can buy. It tracks an index that covers virtually the entire investable U.S. equity market. That's roughly 3,500 stocks in total across all sizes and industries.

Many investors like to use the Vanguard S&P 500 ETF as the centerpiece of their portfolios. I prefer the Vanguard Total Stock Market ETF because I want coverage of the entire U.S. stock market. Mid- and small-cap stocks have different sector compositions and economic influences, along with higher growth potential. That works great from a diversification standpoint.

The Schwab U.S. Dividend Equity ETF is my choice for the best dividend ETF because of its robust selection strategy that targetsstockswith the best combination of balance sheet quality, long-term dividend growth,. yield.

1 UNDER-THE-RADAR ETF TO INVEST $1,000 IN RIGHT NOW THAT'S OUTPERFORMING MAJOR INDEXES THIS YEAR

A futures-options trader works on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City. on June 8, 2026.(Brendan McDermid/Reuters / Reuters)

This fund holds the stocks of many durable companies built to withstand and thrive across multiple economic environments. Plus, its current yield of 3.3% is triple that of the S&P 500 right now. will appeal to folks seeking to draw income from their portfolios.

The Invesco Nasdaq-100 ETF is one of the more commonly used proxies for the U.S.tech sector.While it's actually only about two-thirds tech stocks, it includes all of the major tech. artificial intelligence (AI) names that are in favor right now.

Tech and growth stocks are obviously playing a major role in what's driving U.S. stock market returns. But this segment of the market is usually where the innovation comes from. like we're seeing with the AI boom right now. This always deserves a spot in long-term portfolios. Plus, the Invesco Nasdaq-100 ETF has a lower expense ratio than its sister fund, the Invesco QQQ ETF.

The Vanguard Mid-Cap ETF invests in the under-appreciated area that exists between large-cap and small-cap. Historically, this segment of the market has delivered competitive risk-adjusted returns and shouldn't be ignored by investors.

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While mid-cap stocks have lagged their large-cap counterparts during theAI boom,they're actually beating the Vanguard S&P 500 ETF by more than 1% year to date. As gains broaden beyond the "Magnificent Seven" names, mid-caps sit in the sweet spot of higher growth potential. lower volatility than smaller, more speculative companies.

The Vanguard Small-Cap ETF covers more of a high-risk, high-potential area of the U.S. stock market. These companies may be less developed or unproven,. they're often fast growers that can turn into home runs under the right circumstances.

Thissegment of the markettends to have a greater percentage of unprofitable companies. That's understandable since many of them are still growing,. there's also the risk that some of these companies don't make it. Because this fund owns more than 1,300 stocks. the impact of any one company (or even a handful) failing is negligible. A diversified portfolio of these stocks makes the most sense.

All of these ETFs have the characteristics you want in a buy-and-hold fund. They cover different areas of the market, which means they pair well together if needed. They're low-cost and diversified. For anybody who has even a small amount of money to be put to work, these are five to own.

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David Dierking has positions in Invesco NASDAQ 100 ETF, Schwab U.S. Dividend Equity ETF, and Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends DoorDash, Vanguard Mid-Cap ETF, and Vanguard S&P 500 ETF. The Motley Fool has adisclosure policy.

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Source: https://www.foxbusiness.com/markets/5-simple-etfs-buy-500-hold-lifetime

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