How You Can Invest $1,000 … Right Now

Put your money to work one of these four easy ways

      View All  
How You Can Invest $1,000 … Right Now

#3. Buy an ETF

12195087 Up Graph e1287685365323 How You Can Invest $1,000 ... Right NowIf you’re actively trading stocks with just $1,000, it’s very likely you’re paying more in fees than you are making in profits. For instance, if you make just two trades a month all year long and pay $10 a trade, you need a 24% annual return on your holdings just to break even! On the other hand, putting all your eggs in one basket via a single stock investment is a very risky proposition.

So if you have a small sum to invest, you’re better off relying on the diversification and know-how of an exchange-traded fund or ETF. Such an investment is a group of stocks similar to a mutual fund, only there’s no minimum investment to overcome.

And in case you miss the fun of picking individual winners, there are hundreds of ETFs in all shapes and sizes — from funds that track gold to funds that track only financial stocks to funds that go up when a sector goes down! This way you can play a specific sector or strategy without the risk of putting all your cash into a single company or paying too much in fees.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/how-you-can-invest-1000-right-now/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.