"You may be eager to dive into the world of investing. But the task can seem daunting. Maybe you don't know a thing about the stock market. And the thought of carefully analyzing and picking stocks may feel like you need a master's degree in finance. Perhaps, you think it's too risky - especially if you remember any serious market crashes in your lifetime. Or maybe, you may believe you don't have enough money to invest and the stock market is for the rich."
"But advances in technology have made it quite simple and affordable to become an investor. And for those beginners who believe they may not have the time and know-how to build a winning portfolio that could guide you smoothly into retirement, they can turn to exchange-traded funds (ETFs). These are funds that invest in a handful of stocks that can stretch into the hundreds. And they're hand-picked by asset management professionals, some with decades of experience. Plus, they're known for low fees."
Technology has lowered costs and simplified stock market access, making investing accessible to beginners. Exchange-traded funds (ETFs) allow investors to own diversified baskets of stocks managed by professionals with low fees. Some ETFs pay dividends, providing regular income alongside potential share-price appreciation. Dividend-paying ETFs can suit beginners who lack time or expertise to pick individual stocks. Yield ranges around 3–4% are often considered sustainable, while unusually high yields (around 7%) may signal risk or company distress. Schwab U.S. Dividend Equity ETF (SCHD) holds 101 dividend-paying companies, offers about a 3.51% yield, and has delivered strong multi-year returns.
Read at 24/7 Wall St.
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