While investing can be viewed as one of the best wealth-building tools available, it might all seem complex and intimidating at first. This might discourage those interested in setting up their financial futures from even getting started.

But I'm here to tell you that it's actually quite simple to start putting money to work. Even a relatively modest sum of $1,000 can get you on the right path toward your goals.

If you're ready to invest in stocks, it's a smart idea to put that $1,000 in this exchange-traded fund (ETF).

A top choice

The stock market is a collection of all publicly traded businesses. But investors can gain exposure to the 500 largest U.S. companies via the Vanguard S&P 500 ETF (VOO 1.00%). There are businesses in all sectors of the economy in this ETF, from tech giants like Apple and Microsoft to under-the-radar holdings like Mohawk Industries and Zions Bancorp.

The point is that investors will benefit from the ongoing growth of some of the most successful enterprises out there. Historically, betting on the ongoing expansion and innovation of the U.S. economy has been a very smart course of action.

The Vanguard S&P 500 ETF has climbed at an annualized pace of 12.7% over the past 10 years, including dividends. At that rate of return, a $1,000 investment would've turned into a whopping $3,320. That's a stellar gain for doing absolutely nothing.

What's even more important to realize is that this investment would've boosted your purchasing power. In the last decade, inflation, as measured by the Consumer Price Index, increased by 31%. Keeping your money in cash would've been a terrible decision because the cost of goods and services generally rises over time. This highlights how important it is to consider investing in the stock market.

Investors can also have peace of mind knowing that the Vanguard S&P 500 ETF product is offered by a very reputable firm in the financial services industry, one that has a history spanning nearly five decades. The fees are extremely low, at an expense ratio of 0.03%, so you can keep more of your money over time.

The beauty of owning the Vanguard S&P 500 ETF is that it's a passive vehicle. People can put their money to work with almost no effort.

Things to think about

Despite its impressive long-term track record, the Vanguard S&P 500 ETF will undoubtedly experience volatility on the way up. This is how the stock market works. Instead of being scared of the up-and-down movements of asset prices, investors should be mentally prepared for this to happen. Just understand that volatility must be endured in order to achieve strong returns.

Investors shouldn't try to time the market. With the S&P 500 hitting all-time highs this year, you might think that the smart thing to do is wait for a pullback. But studies have proven that those who try to time the market do more harm to their portfolios. It's much better to focus on time in the market, letting compounding work its magic.

For those who have a source of income, it's worth considering adding more savings to your portfolio on a monthly or quarterly basis. This is called dollar-cost averaging, and it can boost your returns. The added benefit is that it encourages proper saving and investing habits.

Knowing that you're ready to invest in the stock market is the first step to long-term wealth creation. By putting $1,000 in the Vanguard S&P 500 ETF, you're well on your way.