Smart ways to invest small amounts of money
With a minimum of $1,000, investors can buy one of 12 target-date retirement funds, which automatically spread assets across stocks, bonds and international investments, and adjust risk as clients get closer to retirement. The fees on Vanguard’s Target Retirement Funds are 0.16% to 0.18% per year.
Most other Vanguard funds have higher minimums. For example, the popular Vanguard Total Stock Market Index Fund requires a minimum investment of $3,000. Its regular fee is 0.17% per year, but clients with more than $10,000 in the fund can pay just 0.05%.