Invest Your First $100 in ETFs
Learn how to build instant diversification with your first ETF investment.
⏱️ Time: 15-20 minutes 💰 Investment: $100 📱 Platform: iOS & Web 👤 Best for: Beginners wanting diversification 🦍 Recommended Companion: Sage (long-term focus)
What You'll Learn
What ETFs are and why they're great for beginners
How to choose your first ETFs
How to build a diversified portfolio with $100
How to start index investing
Why Start with ETFs?
What is an ETF?
ETF = Exchange-Traded Fund
Think of it like a basket of stocks:
One ETF = Hundreds of companies
Instant diversification
Lower risk than individual stocks
Trade like stocks (buy/sell anytime)
Why ETFs for Beginners?
Advantages:
✅ Instant Diversification: One purchase = exposure to many companies
✅ Lower Risk: If one company fails, others balance it out
✅ Lower Cost: Management fees typically 0.03% - 0.20%
✅ Simplicity: No need to pick individual winners
✅ Professional Management: Automatically rebalanced
Perfect for:
First-time investors
Long-term retirement savings
"Set it and forget it" approach
People who don't want to research individual stocks
Before You Start
Prerequisites
✅ Account Setup
Ape AI account created
Brokerage account connected (or paper trading)
At least $100 available
✅ Mindset
Long-term investment horizon (5+ years)
Comfort with market volatility
Patience for compound growth
What You Need
15-20 minutes of time
$100 to invest
Long-term investment goals
Step 1: Learn About ETF Types
Ask Sage About ETFs
Go to Chat tab
Switch to Sage companion (best for long-term investing)
Tap companion avatar → Select Sage
Start the Conversation
Type this prompt:
Common ETF Categories
Sage will explain different types:
1. Broad Market ETFs
Track entire stock market
Examples: SPY, VOO, VTI
Lowest risk, steady growth
Best for core holdings
2. Sector ETFs
Focus on specific industries
Examples: XLK (tech), XLE (energy)
Higher risk, targeted exposure
Good for conviction plays
3. International ETFs
Non-US companies
Examples: VEA (developed), VWO (emerging)
Diversification beyond US
Currency risk
4. Bond ETFs
Fixed income investments
Examples: BND, AGG
Lower volatility
Income generation
For your first $100: Sage typically recommends starting with broad market ETFs.
Step 2: Get ETF Recommendations
Sage's Typical $100 ETF Strategy
Conservative Approach (Recommended):
Option 1: All-in-One
Option 2: Core + Satellite
Option 3: Balanced Portfolio
What Sage Analyzes
For each ETF, Sage provides:
Holdings: Top companies in the ETF
Diversification: How spread out it is
Historical Returns: Past performance
Expense Ratio: Annual fees
Risk Level: Volatility and drawdowns
Best For: Your investment goals
Example Analysis:
Step 3: Compare ETF Options
Key Metrics to Compare
1. Expense Ratio
How much you pay annually
Good: 0.03% - 0.20%
Avoid: Over 0.50%
Impact: On $100, 0.03% = $0.03/year
2. AUM (Assets Under Management)
Total size of the ETF
Prefer: $1B+
Why: Better liquidity, lower risk of closure
3. Diversification
Number of holdings
More holdings = Lower risk
VTI: 3,500+ stocks
SPY: 500 stocks
QQQ: 100 stocks
4. Historical Returns
Past performance (not guarantee!)
Compare to benchmark
Look at 5-10 year averages
5. Volatility
How much price swings
Beta = Market sensitivity
1.0 = Matches market
<1.0 = Less volatile
1.0 = More volatile
Use Ape AI to Compare
Ask Sage:
Sage will break down:
Key differences
Pros/cons of each
Which fits your goals
Cost comparison
Step 4: Review the ETF Details
Deep Dive on Your Choice
Tap the ETF ticker (e.g., $VOO) to see:
1. Ticker Page
Current price
Year-to-date performance
Volume and liquidity
Snapshot grades
2. Holdings Breakdown
Top 10 companies
Sector allocation
Geographic exposure
Market cap distribution
3. "Pricey or Cheap" Analysis
Current valuation vs history
Premium/discount to NAV
Compared to similar ETFs
4. Risk Assessment
Maximum drawdown
Recovery time
Correlation to market
Tail risk
💡 Tip: For broad market ETFs like VOO/SPY/VTI, they're almost always fairly priced since they track indices.
Step 5: Make Your Investment
Decision Framework
Before investing, confirm:
✅ Is this ETF diversified enough?
Yes if 100+ holdings
Better if 500+ holdings
✅ Are the fees reasonable?
Yes if expense ratio < 0.20%
✅ Can I hold this for 10+ years?
ETFs are for long-term wealth building
✅ Do I understand what I'm buying?
Know the top holdings
Understand the strategy
Place Your Order
Sage will show Trade Setup Card:
Order Types:
Market Order (Recommended)
Executes immediately
Pays current market price
Best for liquid ETFs like SPY, VOO, VTI
Limit Order
Set maximum price
May not fill
Use if concerned about price
For ETFs: Market orders are usually fine because:
Very liquid (easy to trade)
Tight bid-ask spreads
Price difference minimal
Execute the Trade
Review Trade Setup Card
Tap "Execute trade"
Confirm purchase
Wait for fill (usually instant)
🎉 Congratulations! You now own a piece of hundreds of companies!
Step 6: Build Your Strategy
Long-Term Investment Plan
For Your First $100:
Hold for minimum 5 years
Ideally 10-20+ years
Let compound growth work
Next Steps:
Month 2-6: Add More Regularly
After 6 Months: Consider Diversification
Ask Sage for Your Plan
Type:
Sage will create a:
Monthly investment schedule
Diversification timeline
Rebalancing strategy
Long-term allocation
Understanding ETF Basics
How ETFs Make Money
1. Capital Appreciation
ETF price goes up over time
Sell for profit later
Main return driver
2. Dividends
Companies pay dividends
ETF collects and distributes
Usually quarterly
Can reinvest automatically
Example:
💡 Tip: Set up automatic dividend reinvestment (DRIP) to buy more shares automatically!
ETF Rebalancing
What happens automatically:
Index changes holdings
ETF manager adjusts to match
You don't do anything
No tax impact while holding
You only rebalance when:
You own multiple ETFs
Allocations drift from target
Typically once per year
Common Questions
"Should I invest all at once or wait?"
Time in market > Timing the market
Best approach:
Invest the $100 now
Add more regularly (monthly)
Dollar-cost averaging
Don't wait for "perfect" timing
Why?
Markets trend up long-term
Missing best days hurts returns
Consistency beats perfect timing
"What if market crashes after I buy?"
This will happen eventually!
The right mindset:
Crashes = buying opportunities
Your time horizon is 10+ years
Market always recovers
Stay the course
Historical fact:
S&P 500 has recovered from every crash
Average 10% annual returns since 1957
Short-term pain, long-term gain
Ask Sage:
Sage will remind you why holding is usually best!
"How many different ETFs should I own?"
For $100: Just 1 ETF is perfect
Simplicity is key
Already diversified
Easy to track
As you invest more:
2-3 ETFs: Good diversification
5-7 ETFs: Plenty of diversity
10+ ETFs: Probably overdoing it
Simple is better:
VTI alone covers 3,500 stocks
Adding more doesn't always help
Lower fees, simpler management
Monitoring Your Investment
How Often to Check
Recommended Schedule:
First month: Weekly (get comfortable)
Months 2-6: Bi-weekly
After 6 months: Monthly
Long-term: Quarterly
What NOT to do:
❌ Check price multiple times daily
❌ Panic when it's down 2%
❌ Celebrate when it's up 3%
Why?
Daily volatility is noise
Long-term trend is what matters
Reduces emotional decisions
What to Monitor
Quarterly Check-In:
Overall performance
Dividend payments
Any major news
Stay invested!
Annual Review:
Compare to benchmark
Consider rebalancing
Adjust contributions
Update goals
Portfolio View
In Ape AI:
Go to Portfolio tab
See your ETF position
View:
Current value
Total return
Dividend income
Cost basis
Advanced Strategies (After First $100)
Tax-Advantaged Accounts
Once comfortable with ETFs:
Roth IRA (Best for long-term)
Contributions: After-tax money
Growth: Tax-free
Withdrawals: Tax-free in retirement
Limit: $7,000/year (2025)
Traditional IRA
Contributions: Tax-deductible
Growth: Tax-deferred
Withdrawals: Taxed in retirement
401(k)
Employer retirement account
Often has company match
Similar to traditional IRA
💡 Tip: ETFs in Roth IRA = maximum long-term wealth building!
Asset Allocation by Age
Sage's general guidelines:
Age 20-30:
90-100% stocks
0-10% bonds
Maximum growth
Age 30-40:
80-90% stocks
10-20% bonds
Aggressive growth
Age 40-50:
70-80% stocks
20-30% bonds
Balanced growth
Age 50-60:
60-70% stocks
30-40% bonds
Preservation + growth
Age 60+:
50-60% stocks
40-50% bonds
Income + preservation
Rule of thumb: 120 - your age = % in stocks
Common Mistakes to Avoid
❌ Don't Do This
1. Selling during market drops
Locks in losses
Misses recovery
Destroys long-term returns
2. Chasing hot sector ETFs
What's hot today cools tomorrow
Broad market is safer
Speculation ≠ Investing
3. Overcomplicating with too many ETFs
1-3 ETFs is enough
More ≠ Better diversification
Keep it simple
4. Ignoring expense ratios
0.50% vs 0.03% is huge over time
On $10,000 over 30 years:
0.03% = $225 in fees
0.50% = $3,750 in fees
5. Trying to time the market
"Wait for a dip" often backfires
Time in market > Timing market
Consistent investing wins
What's Next?
Continue Your Journey
This Week:
Monitor your first purchase
Get comfortable with volatility
Don't panic!
Next Month:
Add another $100
Same ETF or diversify
Build the habit
Next 3-6 Months:
Consider adding:
International exposure (VEA)
Bond allocation (BND)
Small-cap growth (VB)
Keep Learning
Ask Sage:
Related Workflows
Next Steps:
Related Skills:
Success Checklist
✅ I understand what ETFs are
✅ I chose a diversified, low-cost ETF
✅ I can hold this for 10+ years
✅ I won't panic sell in downturns
✅ I have a plan for regular contributions
✅ I'll monitor quarterly, not daily
✅ I'll let compound growth work
Remember: ETF investing is like planting a tree. Plant it (invest), water it (add regularly), and give it time to grow. In 20-30 years, you'll have a mighty oak! 🌳
The best time to start was yesterday. The second best time is today.
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