Have $20,000 and wondering where to invest it? The answer isn’t the same for everyone. Depending on your age and risk tolerance, the perfect ETF for you could be completely different from the one of us! 

Luckily, there are tons of ETFs out there for you to invest in. If you’re in your 20s and 30s, you typically have time to take larger risks and ride out market fluctuations. On the other hand, if you’re in your 50s and 60s, protecting your wealth should be your top priority. 

We’ll explore ETFs for both of these age groups, as well as those that fall somewhere in the middle.

Investment Options for 20s and 30s

If you have plenty of time to grow your money, you can often be a bit more aggressive with your investment options. Here are some options for you to consider:

1. Vanguard Small Cap ETF 

This ETF tracks US small-cap stocks with much growth potential and risk. It’s suitable for investors comfortable with higher risk, including younger investors with more time to recover from larger losses. 

Vanguard Small Cap ETF (NYSE: VB) tracks the CRSP US Small Cap Index. Its expense fee is around 0.07%, which allows investors to grow their money without significant management costs. 

2. ARK Innovation EFT 

ARK Innovation ETF (NYSE: ARKK) invests in disruptive companies that are innovating in their field. These companies are across several sectors, like genomics, automation, and fintech. As you might guess, there is a high potential for gain here, but there is also a significant risk. 

The expense ratio is around 0.75%, which is high. However, this fund is actively managed. 

Not all younger investors are willing to take on lots of risk. If you’re looking for long-term, stable growth that isn’t as risky, consider these ETF options instead:

3. Schwab US Broad Market ETF

The Schwab US Broad Market ETF (NYSE: SCHB) tracks the whole US stock market index with a slight tilt towards smaller companies. It offers high long-term growth for younger investors, and the expense ratio is very low at 0.03%. 

Because it is tilted toward smaller companies (compared to VOO, for instance), it has a higher potential for long-term growth, which makes it a great choice for younger investors. 

4. Fidelity MSCI All-Country World Index ETF

We also recommend Fidelity MSCI All-Country World Index ETF (NASDAQ: ACWI) for younger investors who want to take less risk. This ETF invests in emerging markets around the world, tracking the MSCI All Country World Index IMI. Because of its global diversification, it is a little less risky than investing in only the US market. 

That said, it can still see huge growth potential because of its emerging market focus. The expense ratio is also pretty low at 0.03%. 

Investment Options for 30s and 40s

As you reach middle age, you want stable investment options that also have a chance to capture growth. You aren’t just hedging your money against inflation, but you don’t have years to build your savings back up if an investment turns red. 

Here are some good ETFs that are in the middle of the road.

5. Vanguard Balanced ETF Portfolio

The Vanguard Balanced ETF Portfolio (TSE: VBAL) is exactly what it sounds like – a balanced fund. It provides a balance between stocks and bonds at nearly a 60/40 split. The stock portion largely tracks the US total stock market index, and the bond portion invests in investment-grade US bonds. 

Overall, the fund’s main goal is to see decent amounts of capital appreciation and generate income through bond holdings. The fund is passively managed and only has an expense ratio of 0.08%.

6. iShares Core Growth ETF 

We also recommend iShares Core Growth ETF (TSE: XGRO) for this age group. This ETF invests in large-cap US growth stocks that have been identified for their growth potential. Its main goal is to outperform the S&P 500 by focusing on companies with high growth potential. 

Because it’s an actively managed fund, its expense ratio is around 0.07%. While this is still considered low, it’s higher than many of the other stocks on this list. 

Investment Options for 50s and 60s

Once you start approaching retirement age, your main focus should be hedging against inflation and protecting your wealth. You don’t want to take huge risks now, as you may not have time to recover from them. You may also want to consider factors like passive income generation. Here are some of our favorite options for those closer to retirement age:

7. Vanguard Total Stock Market ETF 

Just like the name suggests, the Vanguard Total Stock Market ETF (NYSE: VTI) tracks the entire US stock market through the CRSP US Total Stock Market Index. Its main goal is to mirror the whole stock market, which leads to lots of diversification. 

Its expense ratio is only 0.03%. This incredibly low ratio ensures that only a small percentage of your investment goes towards fund management costs. 

8. S&P 500 ETF

Just about everyone has heard of the S&P 500 (NYSE: SPY). It tracks the 500 leading publically traded companies in the U.S., offering exposure to large, well-established companies that play major roles in the US economy. 

The expense ratio is around 0.09%. While this is higher than many other options, it is still relatively low. 

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