Where to invest??

HI Caleb,

It depends what you mean by safe. If you mean that they won’t go down in value, then sorry to say but most ETFs will not fit that bill.

But if you mean safe by having a decent chance of performing well over the long term, then the options increase dramatically.

Those ETFs you mention are definitely popular, and so are A200 and VAS for Aussie shares, along with DHHF and VDHG for ‘all in one’ ETFs where the whole globally diversified portfolio is in a single fund.

Take some time looking into each of them and think about how you would like to invest. I wrote a bit about deciding this here which might help: https://strongmoneyaustralia.com/dhhf-vdhg-on...

Cheers, Dave

Hello! It’s great to hear that you’re eager to start your investment journey, especially at a young age. Investing in ETFs (Exchange Traded Funds) can be a smart way to diversify your portfolio while keeping costs relatively low. The ETFs you’ve mentioned – IVV, NDQ, VGS, and IOZ – are indeed popular choices among many investors, including those on Pearler.

1. IVV: This ETF tracks the S&P 500 Index, which represents the top 500 companies in the U.S. It’s a good option if you’re looking to gain exposure to some of the largest and most influential companies in the U.S. market.

2. NDQ: This ETF focuses on the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock market. It’s heavily weighted towards technology companies, making it a good choice if you’re interested in tech sector growth.

3. VGS: This ETF offers broad exposure to global markets by tracking the MSCI World ex-Australia Index. It includes over 1,500 stocks from developed countries around the world, excluding Australia, which helps diversify your investment outside of the Australian market.

4. IOZ: This ETF tracks the S&P/ASX 200 Index, representing the top 200 companies listed on the ASX. It’s a solid choice if you want to invest in a broad range of Australian companies.

As a young investor, you have the advantage of time, which allows you to potentially ride out market volatility and benefit from long-term growth. It’s also good to hear that you plan to continue educating yourself about investing. Reading widely and understanding the fundamentals of each investment will serve you well.

Regarding your investment strategy, starting with a regular investment plan, like saving $50 each week, is a wise approach. This method, known as dollar-cost averaging, can help reduce the impact of volatility by spreading out your investment purchases over time.

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