Ensuring financial stability is not an easy task in today’s world. All the markets are more or less turbulent. Different changes are unexpectedly happening all the time, and people sometimes do not how to adapt to them. That is the reason why you must not underestimate the importance of knowledge improvement. In that way, you will manage to find the best way to make a better income and reach the goal that you have.
You will manage to find different types of suggestions and tips online. However, they will commonly give you one answer. People need to invest their money and take the necessary risk to ensure their financial stability. It is not a secret that people are not willing to do that. For instance, they do not possess a big amount of money and they are afraid of losing everything.
The world of investments and business is, was, and always will be full of uncertainty. Because of that, risks are not something you should be afraid of. We would like to repeat the piece of advice that Mark Zuckerberg shared in one of his interviews. The biggest risk of all is not taking any risks. That is the reason why you should primarily defeat your fears.
There are many places out there that will seem attractive to you. However, that doesn’t mean investing in all of them would be a smart choice. This article will give you an answer on which funds is best to invest in 2023. As we said, knowledge improvement is essential. You should gather valuable pieces of information from all reliable sources. If you, for instance, live in Europe, you should strive to read more about European funds there. To make things easier for you, let’s find out some of them together.
1. SPDR S&P 500 ETF Trust (SPY)
We will start with one of the funds that have the longest tradition of all. Many people will say it is the grandfather of all ETFs that exist in the world. On the other hand, others will say it is some sort of a trendsetter. The reason why people say that is simple. Since 1993, when the fund was founded, the popularity of the fund investing started to grow. Last month, the entire fund had around 323 billion in assets. That places SPDR S&P 500 in the first place of the most popular funds in the world. State Street Global Advisors sponsor the fund, and that is probably valuable information for the readers.
Anyway, when we talk about the expense ratio, it is affordable for every investor. Believe it or not, it is only 0.09%.
Let’s translate that into numbers. If you invest 100 000 dollars, the costs would be $90 annually. We are sure many will agree on the offer of that type.
2. Vanguard S&P 500 ETF
Known as VOO, this fund tracks the S&P 500 index. Statistics confirm it was one of the largest funds in October 2023. That is the reason why we believe it would be good to invest in it next year. The value of the assets in that period was $557 billion. Can you even imagine how bit that number is?
Still, it is not one of those funds that have a pretty long tradition. That especially counts when we compare it to the previous one. The fund exists since 2010. If you have heard about Vanguard, you know very well it is one of the powerhouses of the entire industry.
When we talk about the expense ratio, it is even more affordable compared to the previous one. Believe it or not, it is only 0.03%. For each 10 000 dollars you invest, the costs would annually be $3.
3. Fidelity ZERO Large Cap Index
The words ZERO in the name of the fund probably says the full story. Investors will not have to deal with the expense ratio because it is ZERO. However, there is one more specific thing that we need to explain here. The previous two funds from our list officially track the S&P 500. When we talk about FNILX, things are a bit different. The fund officially follows the Fidelity US Large Cap Index. However, the difference is massive, and that difference is the reason why we got the most valuable benefit from it.
Because of that, Fidelity doesn’t have to deal with the licensing fee for S&P name using. Because of that, all the costs become lower for the investors. In this case, as we said, they are 0%.
4. Schwab S&P 500 Index Fund
According to some statistics from the previous month, the fund contains more than $49 billion in assets. Many investors may have one common concern. It is not a secret that SWPPX is on the smaller side of the heavyweights. Yet, that should not be a big problem.
First of all, it is another investment fund with a long tradition. It exists since 1997, and, since then, it is sponsored by Charles Schwab. People that are familiar with this industry know-how successful and respected that person is.
He constantly invests in investor-friendly products.
On the other hand, the expense ratio is only 0.02%. In other words, if you invest 100 000 dollars, the costs will only be $20.
Final Thought: How to Pick the Right Investment Fund
Before we say goodbye, there is something we would want to say. We recommended four funds that are best for investing in 2023. You can expand the list with European funds that we attached at the beginning of the article. Yet, that doesn’t mean you should not expend the research. There are certain things you should check when choosing the fund to invest in.
Before everything, do not pick the funds that can’t meet your requirements and expectations. In case you are looking for mutual funds to invest in, the option with a mutual fund company would be a better option.
Despite that, there is a good reason why we highlighted the trading costs. They are not always going to be as affordable as you think. The mutual fund commissions are not the same as stock trading communications. In most cases, they are usually twice higher. That should be one of the pieces of information you should know.
Finally, always check if the commission-free options exist. You saw in our list that costs are usually not high. However, if the free option exists, there is no reason not to use it.