The Smartest Index ETF to Buy With $1,000 Right Now

As the market enters its fourth year of the current bull market, investors may be wondering where to invest, or even if they should start to invest at all. There has been a lot of chatter about the market being overvalued and an artificial intelligence (AI) bubble.However, I would tune out that noise, as there is rarely a perfect time to invest. Instead, I highly believe that the average investor should employ what is called a dollar-cost averaging strategy. This is simply investing a set amount of money regularly, like once a month, regardless of how the market is performing. This takes emotion and market timing out of the equation, and ultimately helps you build long-term wealth.For example, if you start with $1,000 and continue to invest $1,000 each month into an exchange-traded fund (ETF) over 10 years, you'd have around $264,000 with a 15% return. However, the sooner you start and the longer you hold your investment, the better off you'll be. For example, hold an ETF over 30 years with the same return, and you'd have $5.6 million, with 94% of that coming from gains. That is the power of compounding.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool