Back to Blog
The following are three ETFs that one should consider for their Roth IRA. While I do believe that all three of these are great ETFs that I wouldn't mind holding for decades, I don't necessarily believe that one should hold all three of these. Many contain overlapping stocks, so I would mostly just invest in the one that fits one's style in the best way.
1. Vanguard 500 Index Fund (VOO)
This ETF tracks the S&P 500. 90% of active investors would have been better off just investing into the S&P, and Warren Buffett himself stated that he believed most people should just invest in the S&P. This ETF represents almost my entire Roth IRA portfolio. While there are a lot of ETFs out there that track the S&P, VOO seems to be the best one for long term investing. It has a very low expense ratio of .03%.
2. Schwab U.S. Dividend Equity ETF (SCHD)
This ETF invests into high yield dividend stocks. This ETF is good for dividend investors who want to be exposed to a wide range of dividend stocks. The ETF has a dividend yield of 3.32%. It's also a cheap ETF to hold with an expense ratio of just .06%.
3. Vanguard Total Stock Market Index Fund
This ETF invests into the entire U.S. stock market. This ETF moves very similar to VOO, but unlike VOO, it gives investors access to medium, small, and micro cap stocks. It's also very cheap to hold with an expense ratio of .03%. For investors who want access to the top 500 largest companies while also investing into smaller companies as well, this is a great ETF to hold.
These are the three ETFs that I personally believe are the best for a Roth IRA or even just a long-term investor. Again, I don't believe one should buy into all three of these ETFs as they are a lot of stocks that are in all three, but I do believe that one should look at their investing strategy and incorporate the one that fits best.
Start investing by visiting our finance tool page and downloading an investing app - www.financebycwt.com/investing-apps.html
Follow us on social media and turn on notifications to be notified whenever we post a blog post.