Investors can start building a stock portfolio with $1,000 using ETFs and blue chip stocks
Investors with $1,000 can start building a stock portfolio by investing $500 in a diversified exchange-traded fund (ETF), such as the SPDR S&P 500 ETF Trust. This fund provides exposure to the top 500 stocks, offering a safer investment option. The remaining $500 can be allocated to well-known blue chip stocks, like Microsoft or Costco. This approach allows investors to engage more directly with individual stocks while maintaining a focus on safer investments, avoiding risky options. Starting with smaller investments helps new investors learn about the market and build their portfolios over time. This gradual approach can reduce the risk of significant losses compared to making a large investment without sufficient knowledge.