Buying All of the Internet for Just $50
Amazon, Facebook and Google are all great companies and many small investors with limited funds would like to own shares in one or more of these great companies. The problem is most of these stocks are expensive. Amazon (AMZN) is north of $600 dollars a share; Google or Alphabet (GOOG) as it is now listed is over $700 a share and Facebook (FB) looks like a bargain at over $100 a share. But you would need over $1,400 to buy just one share in each of the internet super stocks.
Buy the Internet for $5 with Stash
But you now have a way, using a simple app on your smartphone to buy fractional shares in not only these three great companies but several other internet companies like Salesforce, Netfix, eBay and LinkedIn for as little as $5, using the Stash application and selecting fund they label “Internet Titans".
With Stash you have access to 30 different index funds. What Stash does is re-label the funds and helps you identify then as “I Like”, “I Believe”, “I want”. Under each of these categories are fund labels like Retail Therapy – an index fund that holds stocks of retailers like Target etc.
The Internet Titans fund is actually the First Trust Dow Jones Internet ETF (FDN), an Exchanged Traded Fund, managed by the First Trust company out of Wheaton, IL. Like a stock, you can buy and sell an ETF anytime the market is open. This ETF seeks investment results that correspond to the Dow Jones Internet Composite Index (SM). The index is designed to include companies whose focus is Internet-related. The fund trades at around $70 dollars a share, but when you use Stash, you can invest as much or as little as you like (starting at $5).
This is great way to get started with investing.
Set-up an auto transfer from you bank account and every once in a while when you have a bit extra to invest, use the App to move more money to you Stash account. You can add to your Internet Titans fund if that is where you want to invest or explore any of the other funds available.
I started an account with Stash a few months ago and here is what I am holding:
45% in Blue Chips, 33% in Delicious Dividends, 17% in Internet Titans and 5% in cash.
I have just $50 in the Internet Titans funds, but now I own a part of the several great internet companies. I also have money in a fund that tracks the Blue Chips companies of the Dow Index and 33% in the Delicious Dividends fund (actually the Schwab US Dividend Equity ETF).
While it is a bit early to say investing in these index funds will pay off, so far my total return on the $295 dollars invested as been just .98%, not much better than I could earn in a savings account, but then again a bank savings account wouldn’t have paid $2.89 in total return in less than three months. I will update everyone on the progress of this and other investments I am making in future posts so check back and see how this really simple investing approach is working. And check out Stash, it’s available on the AppStore for Apple and Android.