Dec 10, 2025
How to Start Investing in Stocks: A Simple Guide Using ETFs
Starting to invest can feel overwhelming. There are thousands of stocks to choose from, endless opinions online, and a constant fear of making the wrong move.
The good news is that most people don’t start by picking individual stocks.
They start with ETFs
Exchange traded funds that hold many stocks at once.
These give you instant diversification, lower risk, and exposure to entire markets with one purchase.
Think of them as “starter packs” for investing.
Below is a simple, beginner-friendly guide to building a long-term portfolio using some of the most popular ETFs in the market.
Why ETFs are the easiest way to begin
ETFs solve the biggest problem new investors have: they remove the pressure to choose individual winners.
One ETF can hold hundreds or even thousands of companies.
You get broad exposure, stable growth, and fewer surprises along the way.
Professionals use ETFs as the foundation of their portfolios because they give:
• diversification across industries
• less volatility than single stocks
• clear, long-term return expectations
• an easy way to stay invested without constant monitoring
Once you understand these building blocks, you can add individual stocks later if you want.
The Core ETFs Most Beginners Use
These are some of the simplest ways to build a long-term portfolio. Each one captures a different part of the market.
Numbers shown are based on long-term historical performance.
1. Total US Stock Market — VTI
Covers almost the entire US market in one fund.
Top holdings often include NVIDIA, Microsoft, Apple, Amazon, and Alphabet.
• 10-year annual return: ~14 percent
• Best year: ~33 percent
• Worst year: ~37 percent
Why people like it
You don’t choose companies. You just own the whole market.
2. International Stocks — VXUS
Invests in companies outside the US.
Top holdings include Taiwan Semiconductor, ASML, Nestle, Samsung, Novo Nordisk.
• 10-year annual return: ~8 percent
• Best year: ~27 percent
• Worst year: ~16 percent
Why people like it
It reduces dependence on only US growth.
3. Nasdaq 100 — QQQM
A tech-heavy index focusing on the largest non-financial companies.
Top holdings include Microsoft, Apple, NVIDIA, Amazon, Alphabet, Tesla.
• 10-year annual return: ~18 percent
• Best year: ~55 percent
• Worst year: ~33 percent
Why people like it
Strong long-term growth driven by technology and innovation.
4. S&P 500 — VOO
The 500 largest companies in the US.
Top holdings include Microsoft, Apple, Amazon, NVIDIA, Alphabet, Berkshire Hathaway.
• 10-year annual return: ~14.5 percent
• Best year: ~32 percent
• Worst year: ~18 percent
Why people like it
It’s the benchmark for US investing and a classic long-term choice.
5. Small Cap Stocks — VBR
Focuses on smaller US companies.
Top holdings include NRG Energy, EMCORE, Atmos Energy, Williams Sonoma.
• 10-year annual return: ~9 percent
• Best year: ~36 percent
• Worst year: ~32 percent
Why people like it
Smaller companies often grow faster than giants.
6. Growth Stocks — VUG
Companies expected to grow faster than the market.
Top holdings include Microsoft, Apple, NVIDIA, Amazon, Meta, Tesla.
• 10-year annual return: ~17 percent
• Best year: ~47 percent
• Worst year: ~38 percent
Why people like it
Ideal for long-term investors willing to handle more volatility.
7. Real Estate — VNQ
Invests in REITs and major property companies.
Top holdings include Prologis, American Tower, Equinix, Simon Property Group.
• 10-year annual return: ~5.5 percent
• Best year: ~40 percent
• Worst year: ~37 percent
Why people like it
Offers exposure to real estate without buying property.
8. Tech Stocks — VGT
A focused tech ETF.
Top holdings include NVIDIA, Microsoft, Apple, Broadcom, Adobe.
• 10-year annual return: ~20 percent
• Best year: ~62 percent
• Worst year: ~43 percent
Why people like it
Pure technology exposure with strong long-term performance.
9. High Dividend Stocks — VYM
Invests in companies that pay strong dividends.
Top holdings include JPMorgan, Exxon, Johnson and Johnson, Procter and Gamble, Walmart.
• 10-year annual return: ~9 percent
• Best year: ~30 percent
• Worst year: ~32 percent
Why people like it
Great for steady income and lower volatility.
How to Build a Simple Beginner Portfolio
Here’s a framework that many new investors start with:
Option A: Keep it extremely simple
• 80 percent VTI (US market)
• 20 percent VXUS (international)
Option B: Add tech exposure
• 60 percent VTI
• 20 percent VXUS
• 20 percent QQQM
Option C: Add dividends and stability
• 60 percent VOO
• 20 percent VYM
• 20 percent VXUS
Option D: Growth-focused
• 50 percent VUG
• 30 percent VTI
• 20 percent VXUS
There is no perfect mix.
The goal is to choose something that matches your comfort with risk and stick with it.
How to Start in 5 Minutes
Choose one or two ETFs as your core.
Decide how much you want to invest each month.
Automate the contributions.
Leave the money alone.
Review once or twice a year.
That’s it.
You don’t need to day-trade.
You don’t need to guess winners.
You don’t need a finance degree.
ETFs make the process simple and build long-term wealth quietly and steadily.
If you want help analyzing ETFs and stocks
trade and tonic helps you understand what you’re buying in a clean, structured way.
• fundamentals from SEC filings
• peer comparisons
• sentiment and earnings signals
• risk and valuation context
• AI explanations in plain language
It won’t tell you what to buy.
It helps you understand why something might be worth considering.
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trade & tonic is an intelligent investment analysis platform built for thoughtful investors who want to understand why a stock moves, not just whether it will go up or down. It combines advanced AI models with time-tested investing principles to deliver transparent, easy-to-understand insights that replace noise with clarity.
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