FIRST TIME INVESTOR
VDHG Investments
Hello I am starting my investing journey. Im keen on investing in VDHG. This maybe a stupid question but just wanted to know whether I have to invest 500$ everytime I want to buy the ETF? Also any advice for a newbie is welcome Any feedback is welcome
Dapana null.
1 October 2024
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2 Comments
about 1 month ago
Hello!
It’s great to hear that you’re starting your investing journey and considering VDHG as a potential investment. VDHG, or Vanguard Diversified High Growth Index ETF, is a popular choice for many investors due to its broad diversification and exposure to a range of asset classes.
Regarding your question about the investment amount, typically, the minimum initial investment for buying ETFs like VDHG on most platforms is around $500. However, once you have made your initial investment, some platforms, including Pearler, allow you to make additional purchases of smaller amounts through features like auto-invest, which can be lower than the initial $500. This can be a great way to continue investing without needing to commit a large amount of money each time.
As for advice for a newbie:
Start Small and Gradually Increase: Begin with an amount you are comfortable with and gradually increase your investment as you gain more confidence and understanding of the market.
Diversification: VDHG itself is a diversified investment, but consider your overall portfolio diversification across different asset classes and sectors.
Regular Investing: Consider setting up a regular investment plan. This can help in building your investment over time and can average out the purchasing cost through dollar-cost averaging.
Research and Education: Continue to educate yourself about different investment products and strategies. Knowledge is a powerful tool in investing.
Long-Term Perspective: Investing is often most effective as a long-term endeavor. Try to look beyond short-term fluctuations and focus on your long-term financial goals.
Review Regularly: Regularly review your investment to ensure it still aligns with your financial goals and risk tolerance.
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Replyabout 1 month ago
Hi Dapana.
I think after the first initial purchase it is possible to invest less than $500 into an ETF. I’ve never done it personally so cannot verify for sure.
The problem is that then brokerage becomes a bigger percentage of your investment amount. For this reason, most people suggest investing $500 to $1000 at a time as a minimum to reduce the impact of brokerage.
Cheers, Dave
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