00:00Yes, you can absolutely buy $100 worth of the S&P 500 and the mechanism is buying a fractional share
00:07of an S&P 500 index ETF rather than the index itself, since the index isn't directly purchasable.
00:13The three major ETFs tracking it, SPY, VOO, and IVEV, each trade as full shares typically priced in the $400
00:22to $650 range depending on market conditions.
00:25This fluctuates daily, so treat any specific price as approximate and check it live, meaning $100 alone wouldn't buy a
00:33whole share of any of them.
00:35The solution is fractional share investing, now offered by most major brokers.
00:401. Fidelity and Charles Schwab allow fractional share purchases with no minimum beyond $1 to $5 and zero commission on
00:48US-listed ETFs.
00:502. Robinhood and Cash App similarly support fractional shares, starting around $1, popular with beginners for their simple interface.
00:583. Vanguard supports fractional shares only for Vanguard brand funds like VOO, not third-party ETFs, which matters if you
01:06specifically want VOO.
01:07Expense ratios differ slightly and compound over decades.
01:12VOO and IVV charge about 0.03% annually, while SPY charges roughly 0.09%, a small gap that matters
01:21more for long-term holders than a single $100 investment.
01:25Context changes the right choice.
01:27If you're outside the US, access to these specific brokers may be restricted and local regulations or currency conversion fees
01:35can apply.
01:36If you plan to invest small amounts repeatedly, prioritize a zero-commission broker over one, offering wider asset selection.
01:43I can't confirm current live prices or each broker's exact fractional share minimums as policies change, so verify directly on
01:51the Brokers app before depositing.
01:53Practically, open an account with a broker supporting fractional shares, search VOO or SPY, and enter $100 as a dollar
02:02amount rather than a share quantity.
02:04Finally, remember that everything we discussed today is for educational purposes only and does not constitute financial advice.
02:12Good luck to everyone, and see you in the next video.