{"id":7237,"date":"2013-12-09T12:25:04","date_gmt":"2013-12-09T20:25:04","guid":{"rendered":"http:\/\/www.marketriders.com\/investing\/?p=7237"},"modified":"2016-12-21T07:28:16","modified_gmt":"2016-12-21T15:28:16","slug":"etf-funds-young-investors","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/etf-funds-young-investors\/","title":{"rendered":"ETF Funds For Young Investors"},"content":{"rendered":"<p>Don&#8217;t you wish you knew then what you know now?<\/p>\n<p>The young investor has one amazing tool that most older investors simply don&#8217;t \u2014\u00a0time. The really useful trick in investing is to grab the more volatile investments early, when you have less at stake and less worry that a dip in prices will put you off your\u00a0<a title=\"Five Steps Toward Fixing Your Retirement Plan\" href=\"https:\/\/www.marketriders.com\/investing\/five-steps-toward-fixing-your-retirement-plan\/?utm_source=marketriders&amp;utm_term=2013-12-13-etf-funds-for-young-investors\/\">retirement plan<\/a>.<\/p>\n<p><a href=\"http:\/\/commons.wikimedia.org\/wiki\/File%3AFrom_Skyscrapers_to_Forests_5_(8652675829).jpg\"><img loading=\"lazy\" class=\"alignnone  wp-image-7240\" alt=\"ETF funds\" src=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2013\/12\/From_Skyscrapers_to_Forests_5_8652675829-1.jpg\" width=\"307\" height=\"384\" srcset=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2013\/12\/From_Skyscrapers_to_Forests_5_8652675829-1.jpg 512w, https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2013\/12\/From_Skyscrapers_to_Forests_5_8652675829-1-240x300.jpg 240w\" sizes=\"(max-width: 307px) 100vw, 307px\" \/><\/a><\/p>\n<p>Considering that,\u00a0<a title=\"What Is An ETF? Three Simple Answers\" href=\"https:\/\/www.marketriders.com\/investing\/what-is-an-etf-three-simple-answers\/?utm_source=marketriders&amp;utm_term=2013-12-13-etf-funds-for-young-investors\/\">ETF funds<\/a>\u00a0for young investors are going to be largely stock vehicles. That&#8217;s where they&#8217;ll find the long-term growth they need at the lowest possible cost.<\/p>\n<p>Cost matters a lot: The typical investor loses between a third to half of his or her potential gains by using expensive actively managed mutual funds.<\/p>\n<p>Like mutual funds, inexpensive\u00a0ETFs\u00a0offer diversification. What they don&#8217;t bring is the\u00a0<a title=\"What Wealthy Investors Know About Lowering Investment Risk\" href=\"https:\/\/www.marketriders.com\/investing\/what-wealthy-investors-know-about-lowering-investment-risk\/?utm_source=markteriders&amp;utm_term=2013-12-13-etf-funds-for-young-investors\/\">risk inherent in active trading strategies<\/a>, such as performance chasing and the risk of a manager&#8217;s style going out of style for a long while.<\/p>\n<p>So, which ETF funds for young investors? Here&#8217;s a short list to consider:<\/p>\n<p><strong>iShares S&amp;P SmallCap 600 Value Index (IJS)<\/strong><br \/>\nDesigned to track the S&amp;P SmallCap 600 Value Index, this fund owns at least 90% of its securities in small-capitalization companies in the United States. Time and again, studies show, the best returns come not from mature U.S. equities but from small companies likely to grow earnings fast.<\/p>\n<p><strong>iShares Russell 3000 (IWV)<\/strong><br \/>\nA large blended fund, this ETF tracks the Russell 3000 Index. As such, it provides a less volatile return compared to a small-cap fund while still betting on stocks in general.<\/p>\n<p><strong>Vanguard FTSE Emerging\u00a0Markets\u00a0ETF (VWO)<\/strong><br \/>\nThis fund follows more than 850 stocks in countries such as China, Brazil, Taiwan and India, just to name the largest. The reason a young person would own this fund is to take advantage of growing economies abroad, which tend to turn over faster growth than the developed economies of the United States and\u00a0Europe.<\/p>\n<p><strong>iShares\u00a0MSCI\u00a0EAFE Growth (EFG)<\/strong><br \/>\nA growth fund by design, EFG invests in companies likely to reinvest earnings back into opportunities to increase the value of the firm, rather than paying a dividend. This ETF owns companies outside the United States, where faster-growing markets give the growth-company effect a bit more muscle.<\/p>\n<p>Owning\u00a0ETFs\u00a0is easy. They trade commission-free in most cases and you will find them on all of the major online brokerage sites. The key is to build a\u00a0<a title=\"ETF Portfolio Management Made Easy\" href=\"https:\/\/www.marketriders.com\/investing\/etf-portfolio-management-made-easy\/?utm_source=marketriders&amp;utm_term=2013-12-13-etf-funds-for-young-investors\/\">strong, balanced portfolio<\/a>\u00a0early and to stick to it, rebalancing along the way to maximize your retirement portfolio return.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t you wish you knew then what you know now? The young investor has one amazing tool that most older investors simply don&#8217;t \u2014\u00a0time. The really useful trick in investing &hellip; <a href=\"https:\/\/www.marketriders.com\/investing\/etf-funds-young-investors\/\">Read more <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":7240,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[7],"tags":[62,42,43],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ETF Funds For Young Investors | MarketRiders<\/title>\n<meta name=\"description\" content=\"So, which ETF funds for young investors? 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