TD Ameritrade, which was acquired by Charles Schwab Corp. (SCHW) in 2020, provides a full suite of brokerage products and services. It offers an online trading platform with a variety of investment options and trading tools for ꩲboth beginner investors and seasoned traders. The company also offers financial research and educational material to help investors build a portfolio suited to their risk tolerance a෴nd financial goals.

Investors can open a 澳洲幸运5开奖号码历史查询:Roth individual retirement accoꦆunt (Roth 🎐IRA) with TD Ameritrade, which offers access to thousands of 澳洲幸运5开奖号码历史查询:mutual funds and 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs) with which to build their portfolio. The company provides investing and trading services for millions of client accounts, which total over $9 trillion in assets.

TD Ameritrade’s roots go back to 1975 following the abolition of fixed-rate brokerage commissions by the U.S. Securities and Exchange Commission (SEC). First Omaha Securities Inc., which later evolved into TD Ameritrade, became one of the first firms to start offering discounted commissions. TD Ameritrade’s offerings have expanded since then, and it now provides investors with all of the services of a 澳洲幸运5开奖号码历史查询:full-service brokerage. That includes access to investment guidance from professional advisors through Schwab, the company’s affiliate. TD Ameritrade customers also have access to 澳洲幸运5开奖号码历史查询:robo-advisory services and can trade stocks, ETFs, and options on TD Ameritrade’s online platform with zero commission fees, a key feature typical of 澳洲幸运5开奖号码历史查询:discount brokers.

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 offered by a broad range of other financial services companies, including 401(k)s, IRAs, and Roth IRAs. The main d🍌ifference between a Roth IRA and a 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 But unlike a 澳洲幸运5开奖号码历史查询:traditional IRA, where withdrawn funds are taxed, a Roth IRA allows investors to withdraw funds tax-free.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 poꦡint lists for each fund below are as of July/August 2024, unless otherwise indicated.

澳洲幸运5开奖号码历史查询:Vanguar⛄d Total Stock Marketꦯ ETF (VTI)

• Expense Ratio: 0.03% (as of April 26, 2024)
• 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 ETF (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 which represents approximately 💖100% of the U.S. investable equity market. The fund provides broad, diversified exposure to the U.S. equity marketꦐ.

Gerard O’Reilly, Walter Nejman, and Michelle Louie manage this fund. O’Rei𝐆lly has advised the fund since 2001, 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.

VTI is one of the cheapest broad stock funds on TD Ameritrade’s platform and has the most holdings, making it a top broad-based stock fund for investors looking to build a Roth IRA portfolio. A single broad stock fund is normally sufficient for most investors looking to build a long-term retirement portfolio. 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 a🙈ddition to large caps.

TD Ameritrade does offer other broad-based stock funds at the same low cost as VTI. While these are also good options for a Roth IRA, VTI has the greatest number of holdings and thus provides the most diversified exposure to the U.S. equity market. But the diff𒈔erence in performance and risk may be minimal.

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 aꦚ𒆙pproaching retirement, a more income-oriented portfolio 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 ETF (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 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.

Nancy G. Rogers and Gregory A. Lee manage the fund and have done so since 𓃲2020.

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.

With an 澳洲幸运5开奖号码历史查询:expense ratio of 0%, BKAG is among the cheapest broad-based bond funds offered by TD Ameritrade. It tracks a broad bond index, similar to other funds on TD Ameritrade’s platform, and has more than enough 澳洲幸运5开奖号码历史查询:liquidity for any retail investor.

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 recommend that holding a higher percentage of stocks throughout an investor’s career can greatly enhance potential returns while only marginally increasing risk. B꧟ut investors should always consider their own financial need🌸s 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 their 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 have the extra time and energy to 澳洲幸运5开奖号码历史查询:evaluate other, sometimes 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.