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What is the best (simple and cheap) index fund or ETF you would recommend and how would a novice investor buy into it? Asking for a friend.

Posted by GregW (aka not2fast) May 14 '21, 08:56

No really. I know this guy who is 52 with all grown children that wants to start investing. I suggested he keep it as simple as possible and just buy into an index fund.

Any better ideas?

Responses:

Fidelity and Vanguard have no-fee index funds. I got 30% return last year on Fidelity. It's hard to lose with those. Everything else has fees. -- nm - colin May 14, 09:50
*just.don't.short.anything* -- nm - Max May 14, 09:42
I started last year with a rollover at Charles Schwab. I also set up a Roth IRA account which is very easy. -- (edited) - Max May 14, 09:34 [Backboard] 4
- I’m assuming by sectors, you mean asset classes (domestic equity, foreign equity, fixed income, etc.)? -- (edited) - znufrii May 14, 09:44 3
  - I don't think he should be scared of investing in sector funds. If I had to invest in only one thing, I'd probably choose tech over broad market. -- nm - Max May 14, 09:55 2
    - for example, VGT's 10 year growth on $10k is $64k, vs $37k for VTI. - Max May 14, 10:14
    - Gotcha. -- nm - znufrii May 14, 10:00
SPY - S&P 500 with a 0.09% expense ratio. - Reagen May 14, 09:00
IVV is one of my ETF holdings, tracks the S&P 500 index and has a 3 basis point expense ratio. Simple place to start. - znufrii May 14, 09:00 1
- Fidelity also offers zero expense ratio index funds. -- nm - znufrii May 14, 09:05
Suggest your friend talk to a fiduciary financial advisor. At 52 there are many additional considerations vs. someone in their 20s starting to invest -- nm - oblique May 14, 08:58 1
- And this. -- nm - znufrii May 14, 09:02

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What is the best (simple and cheap) index fund or ETF you would recommend and how would a novice investor buy into it? Asking for a friend.

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