Starting With Just $50? Here's the Simple ETF Strategy That Builds Wealth Automatically

• Investing successful dividend ETFs allows you to person worth careless of banal terms movements.

• Using a dividend reinvestment program is simply a bully mode to actively summation your shares of a dividend banal oregon ETF.

• The Schwab U.S. Dividend Equity ETF has criteria that enactment arsenic a de facto vetting process for investors.

• 10 stocks we similar amended than Schwab U.S. Dividend Equity ETF ›

When it comes to investing, 1 of the astir important things idiosyncratic tin bash is start. I often perceive radical accidental that they don't commencement due to the fact that they consciousness they don't person capable wealth to marque immoderate meaningful investments, but that couldn't beryllium further from the truth.

Any wealth invested is meaningful, careless of however small it whitethorn seem. Whether it's $5, $20, oregon $50, opening to put is simply a mode to not lone enactment yourself successful a presumption to turn that wealth but besides to get utilized to the interior workings of the banal market.

And contempt however confusing the marketplace whitethorn seem, it tin beryllium rather simple. Many radical person built wealthiness solely with exchange-traded funds (ETFs). These let you to put successful dozens, hundreds, and sometimes thousands of companies astatine once, simplifying the process and removing the request to probe idiosyncratic companies.

If you're looking to commencement gathering wealthiness and person $50, my proposal is simply a dividend ETF. If it works retired (which it usually does implicit the agelong term), a dividend ETF gives you a treble bonus: banal terms appreciation and accordant payouts. And if it doesn't enactment retired and the ETF hits a play of struggles, you inactive person the dividend payouts to assistance pad immoderate of the insubstantial losses.

Along with a dividend ETF, investors should powerfully see utilizing their brokerage platform's dividend reinvestment program (DRIP). Your brokerage level takes the dividends you're paid and automatically uses them to bargain much shares of immoderate banal oregon ETF paid them.

For example, if you put $50 successful an ETF with a 3% yield, you could expect to person $1.50 annually, oregon $0.375 quarterly, successful dividends. With a DRIP, alternatively of receiving the $0.375 successful currency each quarter, it would bargain $0.375 much of that circumstantial ETF.

In astir cases, the currency payouts you person from dividend ETFs won't determination the needle until you person accumulated a bully magnitude of shares. That's wherefore focusing connected utilizing dividend payouts to get much shares tin beryllium much impactful successful the agelong term.

There's nary shortage of dividend ETFs. Some absorption connected companies with precocious dividend yields, portion others question retired dividend appreciation. And immoderate ETFs look astatine however agelong a institution has been paying dividends. For idiosyncratic conscionable starting, a large go-to enactment is the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD).