If your goal is to further diversify your portfolio, then within the realm of ETFs, it pays to focus on those that track the S&P 500 index. That index is comprised of the 500 largest publicly traded companies, so it’s a great way to get a piece of the broad market without having to purchase numerous stocks individually.
2. Look at fractional shares
The great thing about fractional shares is that they allow you to own expensive stocks without investing huge piles of money. When you purchase fractional shares, it means you own a portion of a share of stock, not a full share. That, in turn, allows you to buy a piece of more companies.
Fractional shares come in very handy when you’re looking to own a stock like Amazon (NASDAQ: AMZN), which, as of this writing, is trading at around $3,406 a share. Rather than sink over $3,000 into a single share of one company’s stock, you might instead opt to purchase one-third of a share of Amazon and spent the rest of your money on different companies.
Not all brokerage accounts offer the option to purchase fractional shares. But a growing number are making them available. If your brokerage won’t allow you to buy fractional shares, you may want to look at moving your money elsewhere.