Have some $ but novice investor - VOO/VTI or Individual Stocks

As a novice investor, it's generally recommended to start with low-cost index funds like the Vanguard S&P 500 ETF (VOO) and the Vanguard Total Stock Market ETF (VTI) before diving into individual stocks. Here's why: 1. **Lower Fees**: Both VOO and VTI have an expense ratio of 0.03%, which is very low and reduces the cost of investing significantly. This is particularly beneficial for novice investors who are still learning the market. 2. **Diversification**: VTI provides exposure to the entire U.S. stock market, while VOO focuses on the S&P 500. Both offer broad diversification, which helps reduce risk by spreading investments across various companies and sectors. 3. **Performance**: Over the past 5 years, VOO and VTI have shown strong performance, with VOO's 85.3% return and VTI's 80.33% return. This demonstrates the effectiveness of these ETFs in capturing market growth. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |VOO|VOO.P|Vanguard S&P 500 ETF|20240903|-2.02301|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|20240903|-2.151735|169| |VOO|VOO.P|Vanguard S&P 500 ETF|20240904|-0.248247|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|20240904|-0.223944|169| |VOO|VOO.P|Vanguard S&P 500 ETF|20240905|-0.246889|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|20240905|-0.309074|169| |VOO|VOO.P|Vanguard S&P 500 ETF|20240906|-1.665182|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|20240906|-1.660884|169| |VOO|VOO.P|Vanguard S&P 500 ETF|20240909|1.125564|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|20240909|1.069659|169| 4. **Ease of Investment**: ETFs are easy to buy and sell, and can be done so at any time during the trading day. They also require minimal research compared to individual stocks, as you're investing in the market as a whole rather than trying to pick individual winners. 5. **Leverage Ratio**: Both VOO and VTI have a leverage ratio of 1, which means they track their respective benchmarks closely. This is a good thing for a novice investor who wants to avoid the risks associated with leverage. |code|Ticker|Name|Expense Ratio|market_code| |---|---|---|---|---| |VOO|VOO.P|Vanguard S&P 500 ETF|0.03|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|0.03|169| |code|Ticker|Name|Leverage Ratio|market_code| |---|---|---|---|---| |VOO|VOO.P|Vanguard S&P 500 ETF|1|169| |VTI|VTI.P|Vanguard Total Stock Market ETF|1|169| In conclusion, for a novice investor, VOO and VTI offer a solid foundation for building a portfolio. They provide low fees, broad diversification, strong performance, and ease of investment. Once you're more confident and have learned more about the market, you can then consider moving into individual stocks.