The S&P 500 and Dow hit another all-time high on Monday, which is good news for investors. Is it too late to jump on the investing wagon? Corporate earnings come out this week, and that just means either the market is going to go up or down. As investors buy more tech stocks, they seem to see some positive news on the horizon. Nvidia is still pushing the market forward with a big gain, and you are seeing some other companies like SOFI get a huge boost with an 11.43% gain in one day. 

What is Driving Markets This Week?

Today is Columbus Day, which is a Federal Holiday. Bond markets are not open, and people still seem to be putting their money to work in the stock market. The Dow Jones hit 43,000 for the first time ever. The S&P 500 has another all-time high for 2024. This is shaping up to be a great year to have your money working for you in the market. 

41 companies on the S&P 500 Index are expected to report many of their financial results from last quarter, which will help economists judge the health of the economy. It seems for the last two Augusts, people have been calling for a recession. If you call for a recession every year, at least once in ten years, you could be right. Nvidia is leading the way again, helping to push the index higher with a 2.4% gain and helping to lift many of the other tech growth companies. Google, Amazon, Apple, and Tesla all saw some gains. 

As the market continues to see positivity in an election year, the question is, are you invested in the market?

Some Good ETFs to Start Investing In:

If you are not invested in the market yet, do not fear. It is never too late to start. As a wise man once said, “the best day to plant a tree was 20 years ago, the next best day is today.” The hard part is knowing where to put your money. The simple answer is a total market index fund ETF or an ETF that tracks the S&P 500. 

VOO: Vanguard S&P 500 ETF

An ETF, like VOO that tracks the S&P 500 will give you the ability to gain gains in the market with a low expense ratio. You can have a piece of the top 500 companies and let it continue to grow. If you are afraid of the ups and downs that may happen, the S&P 500 has averaged 10% per year for the last 100 years. Looking back at the last five years, it has achieved an average of 15.93%. The market does go up and down, and recessions happen, so take a more conservative approach and expect a return closer to 7-8%. 

VTI: Vanguard Total Market Index Fund ETF

Another good ETF to look into would be VTI. It is the Vanguard Total Market Index Fund ETF. It tracks the entire market. It will give you a piece of every stock on the market, not just the top 500. So if the large cap companies are doing poorly and the small caps are doing well then the ETF will have a bit more diversification than the S&P 500. 

VTI has averaged close to VOO, with an average of 15.18% over the last five years. It doesn’t say that one ETF is better than another. It just shows that over the last five years, large-cap stocks have done much better than small and mid-cap stocks. 

VGT: Vanguard Information Technology ETF

Many people like tech companies like Apple and Microsoft. If you are willing to stomach big drops, this could have risks and rewards for you. You could have some good potential in these markets with an ETF that tracks tech or growth companies. New tech companies like Nvidia and Palantir are springing up all the time. Nvidia is not new, but its pivot from gaming chips to AI has certainly changed its trajectory as a company. 

VGT has been no slouch in the last five to ten years. In the last five years it has averaged 23.18% and averaged 20.68% in the last ten years. These are averages so in 2022 there was a drop of 30% and other years. If you can take the risk there are some big rewards for holding it over a long time. 

Are You Invested in The Market?

The market goes up and down, and we are never sure what could happen. Can you rely on the government to help fund your retirement? As most of us know, the government is not perfect, so it may be safer for us to look at creating our own retirement funds. If you do not know where to go, you can start with these ETFs. If you need more help, find a good financial advisor to help make some great plans. It is never too late to start investing.