The Best Way to purchase ETFs
Hey there! So you want to invest in ETFs? That's super smart! Here's how to do it in simple steps:
- First, you'll need a brokerage account. Since you're a teen, you'll need a custodial account that a parent or guardian manages for you. Some popular options are:
- Fidelity (they have zero commission fees!)
- Charles Schwab (super teen-friendly)
- Vanguard (known for low-cost ETFs)
- Once your account is set up, add money to it. You can usually link your bank account to transfer funds.
- Choose your ETFs! Some popular starter ETFs include:
- VOO (tracks the S&P 500)
- VTI (total US stock market)
- QQQ (tracks tech companies)
- Click 'buy' or 'trade' in your brokerage account, enter the ETF symbol (like VOO), and choose how many shares you want.
Pro Tips:
- Start small - you don't need lots of money
- Pick ETFs with low expense ratios (under 0.2% is great)
- Diversify - don't put all your money in one ETF
For more info, check out these resources:
Investopedia's ETF Guide
SEC's Guide to Investment Companies