It doesn’t take much money to get a lot out of investing. Give the stock market enough time, and compounding will take good care of you. But what if you had just $500 to kick-start your investing portfolio?
An index fund — designed to track a specific market index — would be an excellent choice to start. These funds are buckets of individual stocks lumped together and traded under one ticker symbol.
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks, you guessed it, the S&P 500.
Here are three reasons investors should put at least their first $500 into this rock-solid index fund.
1. It’s a Warren Buffett pick
Warren Buffett is known for his legendary career as a stock picker and CEO of Berkshire Hathaway. Within Berkshire, he has a massive $365 billion stock portfolio with dozens of companies.
With all his immense investing talent, Buffett keeps just two index funds in his portfolio. Both…
