E*Trade offers online trading and discount brokerage services to retail investors. The company is owned by Morgan Stanley, a finanℱcial services company. While E*Trade does not offer its own fund family, it does provide a vജariety of funds from other companies.

E*Trade was founded in 1982 and purchased by Morgan Stanley in an all-stock transaction in Oct. 2020. As a discount broker, E*Trade offers free commissions for online U.S.-listed stocks and 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs).

Investors in the United States have access to several 澳洲幸运5开奖号码历史查询:tax-advantaged saving plans, including 401(k)s, individual retirement accounts (IRAs), and 澳洲幸运5开奖号码历史查询:Roth IRAs.

The main difference between a Roth IRA and a traditional IRA is that the former is funded with after-tax dollars. This means that 澳洲幸运5开奖号码历史查询:contributions to Roth IRAs are not tax deductible, a𝄹s they are with traditional IRAs. But unlike a traditional IRA, where withdrawn funds are taxed, a Roth IRA allows investors to withdraw funds tax-free.

Below, we take a closer look at a broad-based stock fund and a broad-based bond fund available to E*Trade investors. As mentioned, E*Trade is not a fund provider with its own fund family available. For that reason, we’ve selected the least expensive broad༺-based funds, as index funds provide largely similar products if they are functioning correctly and tracking the same or similar indexes. In these cases, cost is a major determining factor.

The B꧅NY Mellon U.S. Large-Cap Core Equity ETF (BKLC)

• 澳洲幸运5开奖号码历史查询:Expense Ratio: 0.00%
• 澳洲幸运5开奖号码历史查询:Assets Under Management: $2.6 billion (as of Aug. 25, 2024)
• One-Year Trailing Total Return: 30.22% (as of Aug. 25, 2024)
• 12-Month Yield: 1.26% (as of Aug. 25, 2024)
• Inception Date: April 7, 2020

BKLC tracks the Solactive GBS United States 500 Index TR, an index composed of 澳洲幸运5开奖号码历史查询:large-capitalization U.S.-listed stocks.

BKLC has 505 holdings. as of Aug. 25, 2024, with a weighted average market cap of $919 billion. The sector breakdown of the portfolio as of Aug. 25, 2024, is 31.74% information technology, 12.93% financials, 11.88% healthcare, and 9.99% consumer discretionary. The rest of the portfolio consists of communication services, industrials, consumer staples, energy, real estate, materials, and utilities.

Broad-based equity funds carry risk but also fairly strong growth potential. A broad-based stock fund like BKLC usually can be used as the foundation of most investment 澳洲幸运5开奖号码历史查询:portfolios. If you have a low risk tolerance or are nearing retirement, an income-based fund may be more suitable for your investme💎nt profile.

The BNY Mellon Core Bond ETF (BKAG)

• Expense Ratio: 0.00%
• Assets Under Management: $1.84 billion (as of Aug. 25, 2024)
• One-Year Trailing Total Return: 8.58% (as of Aug. 25, 2024)
• 12-Month Yield: 3.75% (as of Aug. 25, 2024)
• Inception Date: April 22, 2020

BKAG seeks to track the performance of the Bloomber𓄧g Barclays US Aggrega🌺te Total Return Index, which offers broad exposure to the overall U.S. bond market.

The fund has 4,734 holdings as of Aug. 25, 2024, with a weighted average maturity of 8.48 years. Broken down by sector as of Aug. 25, 2024, 43.24% of the portfolio is Treasuries and 25.41% is agency fixed rate, with the remaining in banking, consumer noncyclical, technology, communications, electric, consumer cyclical, energy, and capital goods.

As of Aug. 25, 2024, all of the ETF’s bonds are 澳洲幸运5开奖号码历史查询:investment grade, with 72.22% rated AA, 12.41% rated BBB, 11.72% rated A, and 3.65% rated AAA.

A broad-based bond f🐽und is typically a much safer, but lower-return, type of investment compared with a stock fund. These funds have a lower risk of losing money, although the risk is not zero. They tend to r💃ise slower than other funds, but they have smaller swings.

Bonds are useful both for more risk-averse investors and to diversify a portfolio to include uncorrelated asset classes. Investors with a higher risk tolerance or a longer time until retirement may wish to choose a smalle💜r bond allocati🐽on.

The Bottom Line

Roth IRAs are good tax-advantaged accounts for retirement. While investors pay taxes upfront, at the time of qualified withdrawal, there a📖re no taxes on the funds withdrawn, including any earnings. Investing in broad-based equity funds and bond funds can be a good strategy for your Roth portfolio, whether you also choose individual investments or not.