The Cash App investing platform offers a convenient way for beginner investors to get started in the stock market. With no fees or account minimums, users can buy fractional shares of stocks and ETFs. The best investments for those using Cash App are low-cost index funds and fractional shares of blue chip stocks. These provide broad market exposure and the ability to invest small amounts across top companies.
Low-cost index funds best for long-term investors
Index funds like VTI and VOO track major market indexes, provide instant diversification, and have very low expense ratios. Rather than trying to pick individual stocks, investing in these funds provides a “set it and forget it” way to grow your money over decades. They are less volatile than owning just a few stocks. For hands-off investors that don’t want to constantly monitor their portfolio, index funds are the way to go.
Fractional shares allow investing any amount
One major benefit of Cash App is the ability to buy fractions of shares. This lets investors put small amounts of money to work without having to save up enough to buy whole shares. For expensive stocks like Amazon, fractional shares provide access for those without thousands to invest upfront. Over time, fractional shares can accumulate intowhole shares.
For hands-off investors looking to put small amounts to work, low-cost index funds and fractional shares are the best investments on Cash App. These provide diversification, exposure to top stocks, and flexibility for new investors.