My parents are incredibly cautious when it comes to money. When I told them I wanted to start investing at just 13 years old, they did everything they could to discourage me. But anyone can succeed in investing. One attractive fund today is the Invesco S&P MidCap Quality ETF (XMHQ), suggests Pieter Slegers, editor of Compounding Quality.
I heard: “Your grandfather lost a fortune during the 1987 market crash.” And: “I made bad investments in tech stocks in the 2000s.”
But here’s the thing…they missed an important point. If you had simply invested in a passive index fund in 2000, your money would have tripled. And since 1987? That same investment would now be worth 15 times as much.
The key takeaway is that anyone can succeed in investing.
Putting money into a passive index fund, like one that tracks the S&P 500, is straightforward and effective. In fact, with this approach, I’m confident you will outperform most professional investors over time. The expected returns? 7%-8% per year over the long haul.
Invesco S&P MidCap Quality ETF (XMHQ)
As for now, I recommend buying XMHQ. MidCap Quality tends to outperform over time. Large cap stocks have performed exceptionally well and I don’t expect this trend to continue.
Recommended Action: Buy XMHQ.
