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Cruian t1_jaekfaq wrote

>I am wondering if it's a good idea to invest a couple hundred dollars in the iShare S&P 500 ETF

It is ok, but there are better strategies than S&P 500. For example, a total world fund (see VT, 2 letters) or pair a US total market fund with an ex-US fund (one of many examples being ITOT + IXUS).

>I heard investing in index ETFs are better for the long term

Index funds are best for long term. ETF vs mutual fund depends on person, account type, and brokerage used.

>so is 500 dollars too less to begin investing in the ETF? I was planning on investing a dollar amount of $200 dollars into the ETF.

Depending on brokerage, you may not be able to do this. IVV has a nearly $400 share price, you'd have to use a brokerage that offers fractional ETFs.

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TheTomato131 OP t1_jaeldai wrote

I am using Fidelity, so I'm pretty sure I can do fractional ETFs. Do you suggest that I should invest a monthly sum into these funds (maybe 60-120 dollars a month)?

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Cruian t1_jaelmp9 wrote

>Do you suggest that I should invest a monthly sum into these funds (maybe 60-120 dollars a month)?

"As much as you can as soon as you can."

Please also see the /r/personalfinance Prime Directive: https://reddit.com/r/personalfinance/w/commontopics

>I am using Fidelity, so I'm pretty sure I can do fractional ETFs.

Correct, and Fidelity also has excellent index mutual funds to consider (though the Zero funds especially should NOT be held in taxable accounts due to inability to be moved to any other brokerage).

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