Interactive Brokers Group Inc. (IBKR) is an automated global electronic broker providing execution, clearance, and settlement services for institutional and individual customers. The company uses proprietary technology to allow customers to monitor and trade in 34 countries around the world simultaneously, at a low cost, from a single trading account.

Interactive Brokers’ roots go back to 1978, and the company was incorporated as a U.S. broker-dealer in 1993. The company has grown to have about $509.5 billion of client equity, as of July 2024, and is a 澳洲幸运5开奖号码历史查询:full-service brokerage.

Interactive Brokers makes available every 澳洲幸运5开奖号码历史查询:exchange-traded fund (ETF) that is publicly traded on a major exchange, as well as more than 43,000 澳洲幸运5开奖号码历史查询:mutual funds. The company does not have its own family of funds. Additionally, Interactive Brokers provides access to stocks, options, futures, foreign exchange instrumꦜents, bonds, metals, and cryptoc꧑urrencies.

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, 澳🍎洲幸运5开奖号码历史查询:individual retirement ac𓆏counts (IRAs), and 澳洲幸运5开奖号码历史查询:Roth IRAs. offered by a broad range ꦍof financial services companies.

The main difference between🌃 a Roth IRA and aꦜ traditional IRA is that the former is funded with 澳洲幸运5开奖号码历史查询: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, as 澳洲幸运5开奖号码历史查询:they are with traditional IRAs. But unlike a 澳洲幸运5开奖号码历史查询:traditional IRA, where withdrawn funds are taxed, a Roth IRA allows investors to withdraw funds tax-free.

All data in the bullet point lists for ea🔥ch fund below are as of July/August 2024, unless otherwise indicated.

澳洲幸运🏅5开奖号码历史查询:Vanguard T🔯otal Stock Market ETF (VTI)

• 澳洲幸运5开奖号码历史查询:Expense Ratio: 0.03% (as of April 26, 2024)
• 澳洲幸运5开奖号码历史查询:Assets Under Management: $419.1 billion (July 31, 2024)
• One-Year Trailing Total Return: 20.24% (August 9, 2024)
• 12-Month Trailing (TTM) Yield: 1.34% (August 9, 2024)
• Inception Date: May 24, 2001

Vanguard Total Stock Market (VTI) is an ETF that aims to track the performance of the CRSP U.S. Total Market Index, an index composed of thousands of stocks across the 澳洲幸运5开奖号码历史查询:market capitalization spectrum and that represents approximately 100% of the U.S. in🙈vestable equity market. The fund provides broad, diversified exposure to the U.S. equity market.

Gerard O’Reilly, Walter Nejman, and Michelle Louie manage this fund.♒ O’Reilly has advised the fund since 2ꦇ001, Nejman since 2016, and Louie since 2023.

Of the ETF’s 3,674 holdings, 71.6% are 澳洲幸运5开奖号码历史查询:large cap stocks, 3.6% are somewhere between midcap and large cap, 12.8% are midcap, 5.1% are between small cap and midcap, and 6.9% are 澳洲幸运5开奖号码历史查询:small cap. The average market cap within the fund is $884.9 billion. These portfolio characteristics are as of June 30, 2024.

This ETF has the widest range of exposure to stocks of various market caps compared to similar broad-based ETFs at its price point. A single broad stock fund is normally sufficient for most investors looking to build a long-term 澳洲幸运5开奖号码历史查询:portfolio for retirement.

A total stock market fund, like VTI, is preferable to an S&P 500 index fund because it offers greater 澳洲幸运5开奖号码历史查询:diversification by providing exposure to small-cap and midcap stocks in addition to large caps. The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the Schwab U.S. Broad Market ETF (SCHB) are also inexpensive alternatives.

Investors who want to invest in a specific small-cap or midcap fund to complement a fund tracking the S&P 500 index might consider these larg꧂e-cap ETFs, all of which are large-cap funds:

• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR Portfolio S&P 500 ETF (SPLG)

A broad-based equity fund like VTI carries a certain degree of risk, but it also provides investors with fairly strong growth opportunities. For many investors, this ETF may act as the foundation of a well-diversified investment portfolio. However, for those with a very low 澳洲幸运5开奖号码历史查询:risk tolerance or who are approaching retirement, a more inco𒁏me-oriented por💦tfolio may be a better option.

澳洲幸运5开奖号码历史查询:BNY Mellon Core Bond ETF (BKAG)

• Expense Ratio: 0.00%
• Assets Under Management: $1.81 billion (as of August 9, 2024)
• One-Year Trailing Total Return: 6.2% (as of August 9, 2024)
• 12-Month Trailing (TTM) Yield: 3.75% (as of August 9, 2024)
• Inception Date: April 22, 2020

BNY Mellon Core Bond (BKAG) is a 澳洲幸运5开奖号码历史查询:passively managed ETF that aims to track the performance of the Bloomberg Barclays U.S. Aggregate Total Return Index, a broad-based 澳洲幸运5开奖号码历史查询:benchmark that gauges the 澳洲幸运5开奖号码历史查询:investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The fund provides investors with broad exposure to the overall U.S. bond market.

This ETF has a 0% expense ratio. It is managed by Nancy G. Rogers and Gregory A. Lee, both of wh𝓰om have advised t🧸he fund since 2020.

Of the fund’s 4,734 holdings, 43.24% are Treasurys, 25.41% are agency fixed-rate bonds, and the remaining 31.35% are bonds or other debt securities issued by entities operating in the following market sectors: banking, consumer noncyclical, communications, technology, energy, electric, consumer cyclical, and capital goods. These portfolio characteristics are as of July 31, 2024.

Broad-based bond or fixed-income funds are generally less risky than equity funds. However, bond funds don’t provide the same growth potential, which means generally lower returns. They can be useful tools both for risk-averse investors and as part of a portfolio diversification strategy. Consistent with 澳洲幸运5开奖号码历史查询:modern portfolio theory, risk-averse investors will find that investing in both a broad-based bond fund and a broad-based equity fund provides diversification. It is an approach that tends to maximize returns while minimizing risks.

Traditional wisdom suggests that that the precise mix of stocks and bonds in a long-term portfolio should follow the 60/40 rule—60% stocks and 40% bonds—and that the proportion of stocks to bonds should shrink as the investor ages. But conventional wisdom has changed, and many financial advisors and prominent investors, 澳洲幸运5开奖号码历史查询:including Warren Buffett, now say that holding a higher percentage of stocks throughout an investor’s career can greatly enhance potential returns while only marginally increasing the risks.

Investors should alwa🤡ys consider their own financial needs and appetite for risk before making any investment decision.

Frequently Asked Questions (FAQs)

The Bottom Line

A Roth IRA offers investors certain tax advantages. Roth IRAs are unique in that they are funded with after-tax dollars and are not taxed when the funds are withdrawn at a later date. 

In short, 澳洲幸运5开奖号码历史查询:funds invested in a Roth IRA can grow tax-free. After opening a Roth IRA, the types of investments chosen will depend on the individual investor’s risk tolerance and how ✃much time and energy they have to research various investments.

For investors with little time and energy, one option is to go with a few large and diversified funds, allocating part of t💝heir money to a broad-based stock fund and another part to a broad-based bond fund. These large, diversified funds also may create a solid foundation for many investors who do not have the extra time and energy to evaluate other, someti💮mes riskier, investment options involving investments in individual companies or specific niches of the market, such as 澳洲幸运5开奖号码历史查询:small-cap stocks.