We are delighted to introduce a new addition to our investment offering at Raiz Invest this March: the SPDR S&P 500 ETF Trust (SPY). This ETF is now available for all Raiz users with Plus portfolios.
What Exactly is an ETF?
An Exchange Traded Fund (ETF), is a type of investment fund that holds assets such as stocks, bonds, or commodities. ETFs are attractive because they span the range of a diversified portfolio with the simplicity of trading as a single stock.
One of the key advantages of ETFs is the ability to provide investors with exposure to a broad array of stocks across a particular index or sector without the necessity to purchase each stock individually. For example, by investing in SPY, you can effectively gain a stake in the top 500 listed companies in the U.S. This diversification minimises risk while maintaining the possibility for growth, making ETFs a valuable component of a balanced investment portfolio.
SPY: A Premium Selection
The SPDR S&P 500 ETF Trust (SPY) is a popular investment choice because it offers a straightforward way to invest in 500 of the largest U.S.-listed companies across various industries, providing a broad snapshot of the American economy. This diversification helps spread your investment risk. SPY is also highly liquid, meaning you can buy or sell shares easily without significantly affecting the price.
Additionally, SPY pays out dividends, which are small shares of earnings distributed to you periodically, adding a potential income stream to the growth of your investment. Historically, the S&P 500 has shown strong returns, and by investing in SPY, you get to participate in the potential growth of these leading companies.
Accessibility of Investing in SPY with Raiz
With a Raiz Plus portfolio you can start investing in the stock market with as little as $5 through ETFs like SPY. This low entry barrier allows you to buy into a broad and diversified portfolio. Not only is this approach highly accessible, but it also offers the convenience of easy tracking. With SPY in your Raiz Plus Portfolio, you can effortlessly monitor your investment’s performance and capitalise on the collective growth of top companies. Additionally, adding to your investment over time is straightforward, helping you gradually build your portfolio at your own pace.
Big Names, Big Opportunities
With SPY, you are investing in big names like Apple, Microsoft, NVIDIA, and Meta. These industry leaders are not only driving the ETF’s appeal but also represent potential growth opportunities in the future. Raiz Invest allows you to leverage their potential for growth with minimal effort.
Unlock Potential and Reap Rewards with Raiz Invest
Choosing to invest in ETFs like SPY in your Plus portfolio at Raiz means you’re strategically building your future wealth. You can find out more about our Plus Portfolio feature here. You could also benefit from regular dividend payouts with quarterly payments if you’ve invested in SPY. These can be a source of extra income or reinvested to enhance your Raiz portfolio.
Published 23/5/2024
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Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund and Raiz Property Fund are issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815).
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The information is general information only and does not take into account of your personal financial situation, goals or needs. You should obtain financial advice tailored to your circumstances by a licensed financial adviser.
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