This past summer, I decided to dive deeper into investing and explore a new type of investment: ETFs. Exchange-Traded Funds, or ETFs, are like baskets of investments—stocks, bonds, or other assets—that you can buy and sell on the stock market, just like individual stocks. They give you instant diversification, which means you’re not putting all your money into one company or industry. For a teen investor like me, it felt like a smarter, less risky way to grow my portfolio.
Among the many ETFs out there, I chose iShares Core Aggressive Allocation ETF (AOA) as my summer pick. Here’s why:
1. AOA Fits My Long-Term Goals
AOA is designed for investors who want aggressive growth, which aligns with my long-term goals as someone just starting out. It’s made up of about 80% stocks and 20% bonds, which means it’s focused on maximizing returns while still keeping a small cushion of stability. At my age, I’m okay with more risk because I have time to recover from market dips.
2. Built-In Diversification
One of the coolest things about ETFs like AOA is how they’re automatically diversified. When I bought AOA, I wasn’t just investing in one company—I was investing in hundreds of stocks and bonds all at once. This included U.S. and international companies, which means my money is spread out across different parts of the world. It made me feel like I had a balanced portfolio, even as a beginner.
3. Low Fees Make a Big Difference
ETFs like AOA are known for their low expense ratios, which is basically the annual cost of owning the fund. AOA’s expense ratio is just 0.15%, which is super affordable compared to other investment options. Over time, saving on fees can add up, especially if you’re investing for the long haul.
4. A Smart Way to Learn
Investing in AOA also became a great way to learn more about the market. By tracking the ETF, I could see how different parts of the economy—like tech, healthcare, or global markets—affected its performance. It was like a mini crash course in finance every time I checked my portfolio.
What I Learned from Investing in AOA
Choosing AOA as my first ETF taught me that investing doesn’t have to be complicated. ETFs are an easy way to start building a diverse portfolio without needing to pick individual stocks or worry about every market fluctuation. Plus, they’re flexible—whether you’re looking for growth, income, or a mix of both, there’s probably an ETF out there for you.
If you’re a teen interested in investing, ETFs are a great place to start. And if you’re curious about AOA, take a closer look—it might be the right fit for your goals too.
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