The Best Stock to Invest $1 In Right Now

A dollar doesn't go very far in today's world. Heck, it won't even get you a burger off the value menu at your local fast-food joint these days.

But it can buy you a sliver, albeit a tiny one, of 500 of the world's most prominent corporations. How? By investing in the Vanguard S&P 500 ETF (NYSEMKT: VOO), a popular S&P 500 (SNPINDEX: ^GSPC) index fund. The S&P 500 is arguably the most famous stock market index, but you cannot invest in it directly.

Vanguard is one of the largest and most trusted names in the investment fund industry, and the Vanguard S&P 500 ETF has a minimum investment of just $1. Here is why it's the best stock you can buy for a buck, or any amount for that matter, right now.

Image source: Getty Images.

Sitting pretty amid the tech stock massacre

Investing has felt pretty easy for the past few years if you've stuck to companies involved with artificial intelligence (AI) or other tech stocks. But the market has become more volatile lately, and tech stocks have retreated from their highs. The selling has been especially painful in software stocks, which investors fear are vulnerable to increasingly capable AI.

But what about the S&P 500 as a whole? Well, the index remains within 2% of its all-time high. Given that technology accounts for more than 33% of the S&P 500, the index's resilience has been both impressive and surprising. Rather than money leaving the market, it has instead rotated into other sectors and industries.

It truly drives home the brilliance of investing in the S&P 500. Nobody can predict the future. Companies and entire industries will be hot one year, then unpopular the next. But the index's widespread exposure to the best U.S. companies means you don't need to try so hard to guess correctly.

Buy near the highs?

The one certainty in the stock market is that prices will go up and down over time. Nobody truly knows when the next big crash may come, and plenty of investors have missed out on massive returns by trying to call the next bear market.

Instead, the best plan is often to diversify your portfolio, invest in world-class businesses, and stay focused on the long term. That's five years out and beyond. The Vanguard S&P 500 is a great way to diversify with little effort, and holding the best U.S. companies has continued to work out well for generations now.

When uncertainty has you nervous about where to put your money, consider simplifying and sticking to the basics. That makes an S&P 500 index fund, such as the Vanguard S&P 500 ETF, arguably the best stock to buy right now. The fact that you can invest for as little as $1 is the icing on the cake.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.