3 Easy Ways To Build Up Your Portfolio In 2025

Not ready to dive into individual stocks yet? Worry not. This article is for you. Whether you're investing $1,000 or $10,000, investing in exchange-traded funds (ETFs) is a great way to wade into the investing pool and build a diversified portfolio along the way. Here are three easy options for building up any portfolio.

Follow the S&P

Investing in S&P 500 ETFs is a smart move because they offer broad market exposure to 500 of the largest U.S. companies, which helps reduce risk through diversification. These ETFs track the performance of the index, providing a low-cost, passive investment strategy with consistent long-term growth potential. Historically, the S&P 500 has delivered strong returns, gaining roughly 88% over the last five years. At the bare minimum, this is a great way to learn more about the stock market.

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The iShares Core S&P 500 ETF (NYSEMKT: IVV) is just the ticket. This ETF looks to track some of the largest stocks traded in the U.S. by being invested across the entirety of the S&P. By investing in this fund, you own Nvidia, Berkshire Hathaway, Microsoft and the other hundreds of stocks that make up the S&P 500 index.

Don't forget dividends

Looking for yield? I don't blame you. Dividends are the gift that keep on giving. Investing in dividend-centric stocks is a smart move for any portfolio because they provide a steady income stream through regular payouts, which give you the opportunity to reinvest over time. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a great option for those looking to add dividends to their portfolio, as it is currently producing a 3.56% yield.

Holding names like Cisco Systems, Bristol Myers Squibb and Home Depot, the Schwab U.S. Dividend Equity ETF is a great way to start learning about dividend stocks, while netting a nice return in the process. Not only does the ETF offer strong yields, but it has also gained nearly 48% in value over the last five years. As Fool.com contributor Matt DiLallo points out, this fund has created annualized total returns of 12.9% since 2011.

A play on tech

It's tough to avoid tech these days. The top tech companies are becoming an ever integral part of business and our day-to-day lives. This week provided a perfect example of why diversification is key.

News of China's cheaper DeepSeek artificial intelligence (AI) model sent Nvidia crashing 18%. While the tech sector has partially regained its footing, this is a prime example of why it's arguably wiser to start with a tech-based fund like the Technology Select Sector SPDR ETF (NYSEMKT: XLK), rather than single stocks. Aimed at tracking the technology space of the S&P 500, this fund is only down around 2.7% this past week because it's diversified across tech on a broader basis.

The ETF gives investors access to stocks like Apple, Broadcom, and Salesforce. Even with the turmoil this week over tech and AI, a tech-focused ETF has paid off over time. The Technology Select Sector SPDR ETF had returns of over 137% over the last five years, handily outpacing the S&P 500.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $311,343!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,694!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $526,758!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of January 27, 2025

David Butler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Bristol Myers Squibb, Cisco Systems, Home Depot, Microsoft, Nvidia, and Salesforce. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.