Investing in the stock market is a smart financial decision that can pay off significantly down the road. Choosing the right investments, though, is critical to maximizing your earnings.
Buying individual stocks is one way to invest, but it’s not the right move for everyone. This strategy involves heavily researching dozens of different companies to determine which stocks are smart investments. While this isn’t necessarily a bad thing, not everyone has the time or interest to invest in individual stocks.
The good news is that there are other ways to invest that are much less research-intensive. If you’re just getting started in the stock market, you can’t go wrong with these three investments.
1. S&P 500 ETFs
An S&P 500 exchange-traded fund (ETF) is an investment that includes all the same stocks as the S&P 500 index, and it aims to mirror the index’s long-term performance. Each fund contains roughly 500 stocks from some of the largest U.S.-based companies, all bundled together into a single investment.
The S&P 500 ETF is perfect for beginner and experienced investors alike, and there are plenty of advantages to this type of investment. For one, it includes hundreds of stocks from a wide variety of industries, which provides instant diversification. The more diversified your portfolio, the less risk you face. Even if a few stocks within the fund don’t perform well, when you’re investing in 500 different stocks, those few won’t sink your entire portfolio.
There’s also a good chance your investments will recover from market downturns when you’re investing in S&P 500 ETFs. The S&P 500 itself has existed for decades, and it’s faced countless corrections and crashes during that time. However, it’s recovered from every one, and it’s highly likely it will also recover from any future downturns.
Where to get started: Because all S&P 500 ETFs track the same index, all of these funds are similar in many ways. Some of the most popular S&P 500 ETFs include:
2. Growth ETFs
A growth ETF is a fund that contains stocks with the potential for rapid growth. The biggest advantage of this type of investment is that fast-growing stocks typically earn above-average returns, so you have a better chance of beating the market.
These funds can be slightly riskier, however, because high-growth companies can also be more volatile. Fast-growing companies also tend to be younger organizations, and they can sometimes be riskier than more established businesses.
That said, growth ETFs can be a smart addition to any portfolio to help your investments grow faster. You may decide, for example, to invest most of your money in an S&P 500 ETF, then contribute a smaller portion toward a growth ETF to give your savings an extra boost.
Where to get started: Each growth ETF will be slightly different. Some contain just a few hundred stocks from a particular industry (such as the tech sector), while others may contain thousands of stocks from multiple industries. The ETF you choose will depend on your preferences and tolerance for risk, but a few of the most popular options include:
3. Dividend ETFs
A dividend stock is an investment that will actually pay you to own it. Some companies pay back a portion of their profits to shareholders, which is called a dividend. A dividend ETF, then, is an investment that includes many different dividend stocks.
The best part about investing in a dividend ETF is that you can gradually create a source of passive income. The more shares of an ETF you own, the more you’ll receive in dividends each quarter or year. If you invest consistently, you could eventually earn thousands of dollars per year in dividends.
Another advantage of dividend ETFs is that you typically have the option to reinvest your dividend payments to buy more shares of that ETF. This can help grow your portfolio without having to invest any additional money out-of-pocket.
Where to get started: The best dividend ETFs are the ones that contain quality stocks from healthy companies. These funds may not pay the highest dividends, but the stocks themselves are more likely to perform well over time. Some of the most popular dividend ETFs include:
Getting started in the stock market can be overwhelming, but it’s one of the best decisions you’ll ever make. By investing in any of these ETFs, you’ll be on your way to building wealth.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
Investment firm head joins Algoma Steel's board – Sault Star
The president and chief executive officer of a New York-based investment firm is a new Algoma Steel board member.
Eric Rosenfeld founded Crescendo Partners in 1998.
He is a master of business administration graduate from Harvard University. Rosenfeld also serves on the boards of Primo Water Corp., CPI Aerostructures, Aecon Group and Pangaea Logistics Solutions, a release says.
He has served on boards since 1998. His first directorship was with Spar Aerospace, the company that developed the Canadarm used in space flights. Rosenfeld also served on the board of beverage maker Cott Corp.
He headed the arbitrage department of Oppenheimer & Co., an investment and brokerage bank, for 14 years before establishing Crescendo Partners.
Mary Anne Bueschkens, Gale Rubenstein, James Gouin, David Sgro, Brian Pratt and Rosenfeld join chair Andrew Harshaw, Andrew Schultz and Michael McQuade, a release says.
“ Our new board members bring critical expertise and diversity to the team,” said McQuade.
The other new members have backgrounds in the automotive, legal and construction sectors.
Bueschkens is a lawyer who has held various roles, including president and CEO of ABC Technologies, an automotive parts supplier.
Rubenstein is a partner in the Toronto-based law firm Goodmans LLP. She is counsel in the firm’s corporate restructuring group.
Gouin is a former head of Tower International, a global manufacturer of automotive products. He also worked 28 years at Ford Motor Company. He held two vice-president roles with the automaker.
Sgro is a senior managing director at Crescendo Partners. The firm’s services include consulting, mergers, acquisitions and capital raising support and private equity investment.
Pratt is a former chair and director of Primoris Services Corp., a parent company of construction and engineering firms. He was also president and chief executive officer and board chair of the Dallas-based Primoris, and its predecessor entity, ARB Inc., from 1983 to 2015. Pratt is a former chair of Legato Merger Corp.
All the board members are independent, except McQuade. He is ASI’s CEO.
The Sault Ste. Marie steelmaker started trading on the Toronto Stock Exchange on Thursday.
– with files from Postmedia Network
Micron Urges Government Investment with R&D Spend – The Next Platform
Over the last twenty years, memory has risen from 10% of the semiconductor market to almost 30%, a trend that is expected to continue, propelled by compute at the edge all the way up to datacenter. To meet these demands, memory giant, Micron, has announced it will make $150 billion in internal investments, ranging from manufacturing and fab facilities to R&D to support new materials and memory technologies.
The nature of the announcement serves two purposes. The first is obvious, Micron is putting a stake in the ground around its bullish view for edge to datacenter growth and their role as a primary component maker. The second is only slightly less obvious: to compel the U.S. to match funds or continue new investment strategies to support U.S. fabs and semiconductor R&D.
While $150 billion is a sizable investment, the fab component of Micron’s plans will gobble up a significant fraction. While no fab is created equally, consider TSMC’s investments in new facilities, which are upwards of $9 billion. Such investments can take two to three years to yield but the time is certainly right. Gartner, for instance, estimates the costs for leading-edge semiconductor facilities to increase between 7-10%.
While DRAM and NAND are less expensive than leading edge technologies, Micron will need to choose carefully as it sets its plans in motion. Luckily, there is ample government support building in the U.S. for all homegrown semiconductor industry, although it is unclear how federal investments, including the $52 billion CHIPS Act, will augment Micron’s own ambitions.
Micron is seeking the attention of government with its broad R&D and manufacturing investment, pointing to the creation of “tens of thousands” of new jobs and “significant economic growth.” In a statement, Micron explained that memory manufacturing costs are 35-45% higher than in lower-end semiconductor markets, “making funding to support new semiconductor manufacturing capacity and a refundable investment tax credit critical to potential expansion of U.S. manufacturing as part of Micron’s targeted investment.”
“The growth of the data economy is driving increased customer demand for memory and storage,” said Executive Vice President of Global Operations Manish Bhatia. “Leading-edge memory manufacturing at scale requires production of advanced semiconductor technology that is pushing the laws of physics, and our markets demand cost-competitive operations. Sustained government support is essential for Micron to ensure a resilient supply chain and reinforce technology leadership for the long term.”
Micron CEO, Sanjay Mehrotra says the company will “look forward to working with governments around the world, including in the U.S. where CHIPS funding and the FABS Act would open the door to new industry investments, as we consider sites to support future expansion.” The subtext there is that the U.S. is only one country in the running, among others making investments.
Increasing government support will likely align with fabs and facilities but Micron says it’s working on next generation technologies set to keep pace with growing demand.
This is part of the company’s 2030-era plan for memory technology. Micron sees edge and cloud deployments expanding but also points to AI as the leading workload across deployment types. The company’s senior VP and GM for Compute and Networking, former Intel HPC lead, Raj Hazra, says that by 2025, 75% of all organizations will have moved beyond the AI experimentation stage into production.
To support this more practically, Micron has set forth some ambitious near-term targets, including reaching for 40% improvements in memory densities over existing DRAM, double SSD read throughput speeds over current 1TB SSDs, 15% power reductions over existing DRAM and 15% better performance for mixed workloads over existing NAND.
Walmart allowing some shoppers to buy bitcoin at Coinstar kiosks
Coinstar, known for its machines that can exchange physical coins for cash, has partnered with digital currency exchange CoinMe to let customers buy bitcoin at some of its kiosks.
There are 200 Coinstar kiosks located inside Walmart stores across the United States that will allow customers to buy bitcoin, a Walmart spokesperson said.
Walmart was subject to a cryptocurrency hoax in September when a fake press release was published announcing a partnership between the world’s largest retailer and litecoin. The news had briefly sent prices of the little known cryptocurrency surging.
(Reporting by Uday Sampath in Bengaluru; Editing by Devika Syamnath)
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