What 5 investments are great to start with 200 dollars

in Steem Schools13 days ago
Knowing how to invest frees us from material financial problems.

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With $200, you’re looking at entry-level investing where low-cost, diversified options shine. Here are five solid picks to consider:
Fractional Shares of ETFs - Buy into something like the Vanguard S&P 500 ETF (VOO) or Schwab U.S. Broad Market ETF (SCHB). Platforms like Robinhood or Fidelity let you purchase fractions of a share, giving you exposure to hundreds of companies for as little as $10-$20 per ETF. Low fees, broad diversification.

Index Funds - Similar to ETFs but designed for long-term holding. Schwab’s SWTSX or Fidelity’s FZROX have low or no minimums and tiny expense ratios. You could split your $200 across one or two funds to track the total stock market.

Blue-Chip Stocks (Fractional) - Grab fractional shares of stable giants like Apple, Microsoft, or Coca-Cola through apps like Cash App or SoFi Invest. Allocate $30-$50 per stock to diversify. These companies have decades of resilience.

Robo-Advisor Account - Put your $200 into a robo-advisor like Betterment or Wealthfront. They’ll build a diversified portfolio of ETFs tailored to your risk tolerance, often with no minimum. Great for hands-off investing.

Treasury Securities - Use $100-$200 to buy U.S. Treasury bills or notes via TreasuryDirect.gov. They’re dead-safe, and short-term T-bills (4-8 weeks) yield around 4-5% annually as of early 2025: low risk, steady returns.

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