Kaleb Paddock, a Certified Financial Planner with Fee Fair investment Advisers, suggests that investors consider high-yield funds for their Roth IRA. High-yield funds offer the potential for higher returns than a vanilla index fund, but they also carry higher risks. investors should do their research and consult with a financial advisor before invest in a high-yield fund.
The Vanguard Total Bond Market ETF (NASDAQ:BND) is a great option for almost any invest looking for exposure to the stock market. The fund tracks the Bloomberg Barclays U.S. Aggregate Float Adjusted Bond Index, which includes investment-grade, U.S. dollar-denominated bonds that are publicly traded in the U.S. The fund has a low expense ratio of 0.05% and has a four-star rating from Morningstar.
The Fidelity Total Bond Market ETF (FTBFX) is another great option for those seeking exposure to the U.S. bond market. The fund tracks the Bloomberg Barclays U.S. Aggregate Float Adjusted Bond Index and has a four-star rating from Morningstar. It also has a low expense ratio of 0.04% and a four-star rating from Morningstar.
The iShares Core US Aggregate Bond ETF (AMEX:AGG) is a great choice for those looking for broad exposure to the U.S. investment-grade bond market. The fund tracks the Bloomberg Barclays U.S. Aggregate Float Adjusted Bond Index and has a low expense ratio of 0.04%. It also has a four-star rating from Morningstar.
The SPDR Bloomberg Barclays High Yield Bond ETF (AMEX:JNK) is a great choice for those seeking exposure to the high-yield bond market. The fund tracks the Bloomberg Barclays U.S. High Yield Corporate Bond Index and has a low expense ratio of 0.15%. It also has a four-star rating from Morningstar.
In recent years, fundamental invest has become a very popular ETF strategy. Funds that employ this strategy are designed to track a market index, but use fundamental factors such as revenue, earnings, dividends, and cash flows to weight the individual securities in the index. The PowerShares FTSE RAFI U.S. 1000 ETF (AMEX:PRF) is one such fund and tracks the FTSE RAFI U.S. 1000 Index. The fund has a low expense ratio of 0.45% and has a four-star rating from Morningstar.
Dividend growth stock have historically produced higher returns with less risk than the overall stock market. The Vanguard Dividend Appreciation ETF (AMEX:VIG) is a great choice for those looking for exposure to dividend growth stock. The fund tracks the NASDAQ US Dividend Achievers Select Index, which includes stock with a history of growing dividends over time. The fund has a low expense ratio of 0.08% and has a four-star rating from Morningstar.
China's economy suffered doubly in 2022. Not only did soaring inflation and global economic weakness adversely impact its once-great growth, but a major equity market meltdown also hit the country hard. The iShares MSCI China ETF (NASDAQ:MCHI) is a great choice for those seeking exposure to the Chinese equity markets. The fund tracks the MSCI China Index and has a low expense ratio of 0.59%. It also has a four-star rating from Morningstar.
After a horrible 2022, growth stock have been in the driver's seat lately: As of this writing, the Morningstar US Growth Index has outrun the other Morningstar stock indexes. The iShares Core S&P 500 Growth ETF (AMEX:IVW) is a great choice for those looking for exposure to U.S. growth stock. The fund tracks the S&P 500 Growth Index and has a low expense ratio of 0.07%. It also has a four-star rating from Morningstar.
For those looking for exposure to the international equity markets, the iShares Core MSCI EAFE ETF (AMEX:IEFA) is a great option. The fund tracks the MSCI EAFE Index, which includes stock from developed markets across Europe, Australasia, and the Far East. The fund has a low expense ratio of 0.08% and has a four-star rating from Morningstar.
Finally, the Vanguard REIT ETF (AMEX:VNQ) is a great choice for those seeking exposure to the U.S. real estate sector. The fund tracks the MSCI US REIT Index and has a low expense ratio of 0.12%. It also has a four-star rating from Morningstar.