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lost_girl_2019 OP t1_j2dc91k wrote

Reply to comment by SaveUkraine2022 in $50 isn't much, but I want to start somewhere. by lost_girl_2019

Got it, thank you!

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SaveUkraine2022 t1_j2dcfo8 wrote

The aforementioned index ETFs are generally considered rlow-risk investments relative to other ETFs and stocks.

That being said, investment returns are usually dependent on the level of risk involved. The rate of return is directly proportional to the level of risk

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lost_girl_2019 OP t1_j2debfr wrote

So the more aggressive your investment, the higher the likelihood of having a higher "payout" so to speak? I don't know the exact term.

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Mountainhollerforeva t1_j2dhbr7 wrote

It’s more about the risk profile than the level of investment. More risk equals more potential rewards. But you want something moderate risk like VOO which is an S and P 500 tracker. Meaning it’s made up of a mixture of s&p500 stocks.

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According_Elk_8196 t1_j2ednlg wrote

Yes in general a higher risk investment should have a higher expected payout than a lower risk investment but the range of outcomes (meaning chance of loss) will be higher

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