What ETF should I invest IRA in?
I have a Roth IRA account that I’m starting to put money in and wanted to know your thoughts on what ETF to get into. Energy, Health Care, Corp Bonds, Real Estate, Financials…?
Terry Says: Frankly, I’d start out buying the “whole” market, using a traditional index fund, the S&P 500 fund offered by your fund company. If you opened your account at a discount brokerage firm, like Schwab you can buy the Fidelity or Vanguard S&P 500 index fund. If you opened your Roth IRA at a traditional brokerage firm, then the purchase of an ETF means you will pay commissions to the broker. Why do that?? With a traditional no-load mutual fund like those mentioned above, you will not pay a commission every time you put money in. And since it’s an IRA, I’m assuming you have a long-term time horizon, and will not be trading in and out of the market, or trying to time the market — so why use an ETF at all? At least not until you become more sophisticated, and have a core position in the market as a whole.