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For young investors, getting started can be exciting but also nerve-wracking. One 25-year-old investor posted in the r/dividends subreddit to get advice on investing $10,000. The investor was looking for ideas for low to medium-risk high-yield exchange-traded funds (ETFs) and plans to add $250 to $500 monthly.

Redditors chimed in with various ETFs and guidance for the beginning investor, including ensuring they have an emergency fund in a high-yield savings account before starting. Many cautioned the young investor not to dive in with all $10,000 into one option but to slowly begin building up positions. Dollar-cost averaging is a way to build up positions over time, thereby reducing the risk of buying all at once at an unfavorable price.

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Some suggested using limit orders to help narrow down buying prices. High-yield ETFs do not always have high returns, and some cautioned the young investor to consider both. Others said that one potential strategy is to max out a Roth IRA before investing through a taxable account.

SPLG: A Low-Cost Index Option

The SPDR Portfolio S&P 500 ETF (NYSE:SPLG) seeks to match the total return performance of the S&P 500 Index. Redditors praised the fund’s lower expense ratio. SPLG is a low-cost ETF that seeks to offer comprehensive exposure to the large-cap part of the market. It has met the benchmark of the index it tracks for ten years. Major holdings include Apple Inc (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT), and Nvidia Corp. (NASDAQ:NVDA).

DGRO: Tracking Consistently Growing Dividends

Started in 2014, the iShares Core Dividend Growth ETF (NYSE:DGRO) is designed to offer exposure to companies that provide consistent dividend growth with a low expense ratio. It tracks the Morningstar US Dividend Growth Index, and since its inception, it has delivered an 11.27% total return, roughly in line with its benchmark. Top holdings are blue-chip companies such as JPMorgan Chase & Co. (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), AbbVie Inc. (NYSE:ABBV), and Apple Inc.

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$100K In VOO?

One Redditor shared the experience of achieving the enviable goal of $100,000 by first investing in the Vanguard S&P 500 ETF (NYSE:VOO). This fund invests in stocks in the S&P 500 Index and tracks the index's return. This fund offers the potential for high investment growth but may have downturns along with the market it tracks. It is often suitable for long-term investors seeking growth rather than dividends. “After that first 100K, I started thinking about building an income portfolio and did a lot of research from there. I still have that 100K in VOO, never sold, and it’s worth a lot more than 100K now. I’m just focusing on dividend funds at this time," said the Redditor.

SPYI: An Active Approach

The NEOS S&P 500 High Income ETF (BATS:SPYI) is an actively managed fund created in 2022. It distributes high monthly income generated from investing in the constituents of the S&P 500 Index and implementing a data-driven call option strategy. Because the fund is actively managed, it has a higher expense ratio and seeks to exploit tax loss harvesting opportunities. It has generated 25.9% in total returns since inception.

The young investor has the most essential asset available for anyone hoping to make big returns in the stock market: time. As Warren Buffett famously said, "The stock market is a device to transfer money from the impatient to the patient."

A 9% Return In Just 3 Months

EquityMultiple's ‘Alpine Note — Basecamp Series' is turning heads and opening wallets. This short-term note investment offers investors a 9% rate of return (APY) with just a 3 month term and $5K minimum. The Basecamp rate is at a significant spread to t-bills. This healthy rate of return won't last long. With the Fed poised to cut interest rates in the near future, now could be the time to lock in a favorable rate of return with a flexible, relatively liquid investment option.

What's more, Alpine Note — Basecamp can be rolled into another Alpine Note for compounding returns, or into another of EquityMultiple's rigorously vetted real estate investments, which also carry a minimum investment of just $5K. Basecamp is exclusively open to new investors on the EquityMultiple platform.

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This article Investing Your First $10,000 In ETFs, Redditors Share Their Tips For Beginning Investors originally appeared on Benzinga.com