Do you have some extra savings and are not sure where to invest?

financial independence
Co-Authored and Reviewed by Gagan Sandhu, MBA - The University of Chicago Booth School of Business, CEO of Xillion
Posted on . 2 min read

Author: Gagan

Short Answer:


Long Answer:

In the US, buying big American companies with one half, and small American companies with the other half is likely to give you better returns than 98% of finance wizards over the next 10 years. This strategy worked great for my retirement portfolio over the last two decades.

The Specifics: You can buy these ETFs (Exchange Traded Index/Hedge/Mutual Funds) by going to your brokerage platform and typing the 3 to 4 letter ticker/symbol where they ask you which stock to buy.

  1. VOO - Vanguard S&P 500 ETF

Expense Ratio: 0.03%

Type: This fund reflects S&P 500 index, that is, this ETF/fund is a collection of the 500 largest (profitable) companies in the US. Apple will be the biggest holding in any S&P 500 fund, with Amazon, Microsoft, Tesla among the top holdings because these are the biggest American companies by total market cap.

  1. SCHA - Schwab Small Cap ETF

Expense Ratio: 0.04%

Type: This fund has small cap companies, that is, the companies that are currently small in size and market capitalization. The advantage of small cap is that smaller companies typically grow faster than larger companies and their stocks also correspondingly grow faster than larger companies that are in the S&P 500.

They both have extremely low expense ratios of 0.03% and 0.04% respectively. This means that if you invest $10,000 into the first ETF, then Vanguard will keep $3 per year for the work they do to manage the VOO ETF/fund for you. And Schwab would charge you $4/year to manage the SCHA ETF/fund for you. This is as good as it gets in the financial world.

🤩 Testimonials:

👤 Ankur Tiku - Functional Transformation Leader at Honeywell

➡️ Great (also Simple to implement) insights for all investors!!

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