|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||106.57 - 107.52|
|52 Week Range||91.62 - 113.49|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.94|
|Expense Ratio (net)||0.05%|
The Roth IRA is one of the most popular retirement vehicles. While Roth IRAs are funded with post-tax income, the popularity of these products stems from the fact that future withdrawals are not taxed. "Roth IRAs make the most sense if you expect your tax rate to be higher during retirement than your current rate," according to RothIRA.com. "That makes Roth IRAs ideal savings vehicles for young, lower-income workers who won't miss the upfront tax deduction and will benefit from decades of tax-free, compounded growth." Straightforward investments such as individual stocks, bonds, exchange-traded funds (ETFs), index funds and mutual funds are suitable for Roth IRAs, but some asset classes are not conducive to inclusion in Roth IRAs. For example, cash investments like money markets probably should not be included in Roth IRAs nor should funds with high acquired costs and fees. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stupidly Cheap Stocks to Buy Now Here are seven of the best ETFs and index funds to consider for Roth IRA inclusion this year. ### Schwab U.S. Dividend Equity ETF (SCHD) Source: Shutterstock Expense Ratio: 0.07% per year, or $7 on a $10,000 investment. Given that Roth IRAs are designed to be long-term investment vehicles, it makes sense that investors add some dividend stocks or funds to their Roth IRA rosters. And knowing that assets in a Roth IRA are bound to be held for lengthy holding periods, saving on ETF or index fund fees is pivotal. Among dividend funds, the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of the least-expensive options to consider. The $7.60 billion SCHD follows the Dow Jones U.S. Dividend 100-Index, which features domestic dividend payers with minimum dividend increase streaks of 10 years. SCHD holds just over 100 stocks. Dividend growth strategies and funds often feature stocks with quality hallmarks and SCHD is no exception. The fund devotes 43.5% of its weight to consumer staples and technology stocks. Consumer staples has a rich tradition of growing dividends and offering above-average yields while the technology sector has been one of the most prodigious dividend growth groups in recent years. Those traits, among others, make SCHD ideal for inclusion in Roth IRAs. ### Vanguard Value ETF (VTV) Source: Shutterstock Expense Ratio: 0.05% While the value factor struggled mightily over the course of the recent U.S. bull market, historical data suggests value stocks usually perform well, if not outperform over long holding periods. That combined with its low fee make the Vanguard Value ETF (NYSEARCA:VTV) an ideal addition to Roth IRA lineups. VTV is one of the largest and least expensive value ETFs and therefore also one of the largest and cheapest smart beta funds in the U.S. The fund holds 344 domestic stocks with the value designation and it tilts heavily toward large-caps names as highlighted by a median market value of $89.3 billion among its holdings. * 7 Dark Horse Stocks You Really Need to Look at for 2019 While this potential Roth IRA addition is a value fund, many of its holdings qualify as low volatility or quality stocks or both. The possible near-term hindrance to VTV is its 23.5% weight to financial services, but that sector is rallying to start 2019. ### iShares Edge MSCI USA Momentum Factor ETF (MTUM) Expense Ratio: 0.15% Momentum is another investment factor that has impressive long-term returns, but as 2018 showed investors, momentum stocks can be volatile and their fortunes can change abruptly. However, allocating a portion of one's Roth IRA to a momentum fund rather than stock picking among momentum names can smooth out some of volatility associated with momentum fare. Enter the iShares Edge MSCI USA Momentum Factor ETF (BATS:MTUM). The $8.1 billion MTUM "seeks to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks exhibiting relatively higher momentum characteristics, before fees and expenses," according to iShares. Investors typically think of momentum strategies as being heavy on technology and consumer discretionary names, and that is the case with MTUM as the fund devotes almost 45% of its weight to those sectors. However, factor-based funds are usually sector agnostic and that is true of this fund. Its sector weights can shift as momentum improves or declines through the various sectors. The fund also devotes over a quarter of its weight to the healthcare sector. ### iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) Expense Ratio: 0.15% Although Roth IRAs are long-term vehicles, even risk-tolerant investors should include some fixed-income exposure. Rather than relying on slower-moving, lower-yielding Treasuries, Roth IRA investors can boost their income profiles with investment-grade corporate bonds. The iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA:LQD) is the largest corporate bond ETF in the U.S. LQD holds nearly 2,000 corporate bonds and has a 30-day SEC yield 4.3%, well above what investors will find with 10-year Treasuries or on the S&P 500. Roth IRA investors can ride out some of the risks associated currently associated with corporate bonds. There is some interest rate risk with LQD, as the fund's duration is 8.27 years. Moreover, roughly half of the fund's holdings are rated BBB, the investment-grade spectrum that is closest to junk territory. That group is also viewed as increasingly vulnerable to credit downgrades. * 7 Retail Stocks to Buy for the Rise of Menswear "Historically, investment-grade corporates with BBB ratings perform relative to other corners of the corporate bond market, but those bonds delivered losses last year, heightening concerns about fragile grasps on investment-grade ratings heading into 2019," according to ETF Trends. ### ProShares Russell 2000 Dividend Growers ETF (SMDV) Expense Ratio: 0.4% As noted earlier, dividends merit strong consideration for Roth IRAs. The same is true of small-cap stocks. The combination of dividends and small caps available via the ProShares Russell 2000 Dividend Growers ETF (BATS:SMDV) is a potentially potent one for Roth IRA investors. SMDV tracks the Russell 2000 Dividend Growers Index, the dividend growth derivative of the famous Russell 2000 Index. SMDV's underlying index requires member firms to have minimum dividend increase streaks of at least a decade. That trait is something of a rarity in the small-cap space and as such, SMDV holds just 61 stocks. However, the fund can help investors mitigate some of the volatility associated with smaller stocks. "According to Harnessing the long-term potential of dividend growth, a new report from FTSE Russell, the Russell 2000 Dividend Growth Index had an annualized return of 11.8% from June 1998 through December 2018, versus 7.6% for the Russell 2000 Index," said FTSE Russell in a recent note. "And these returns were achieved amid a respective annualized volatility of 15.1% and 19.6% for the same period. More return for less risk resulted in a significantly higher return/risk ratio of 0.78 for the Russell 2000 Dividend Growth Index." ### Invesco QQQ (QQQ) Source: Shutterstock Expense Ratio: 0.2% The Invesco QQQ (NASDAQ:QQQ) is ideal for younger Roth IRA investors with the benefits of time and higher risk tolerance. One of the most venerable broad market ETFs in the U.S., QQQ tracks the Nasdaq-100 Index and is known for being a reliable proxy on the technology sector without being a dedicated technology ETF. QQQ devotes almost 42% of its weight to that sector, with Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) combining for 19% of the fund's weight. * 7 Stocks to Buy as the Dollar Weakens For investors looking to add some growth names to their Roth IRAs, QQQ is an efficient way of doing just that, as about 62% of the fund's holdings are classified as growth stocks. ### Invesco S&P 500 Equal Weight ETF (RSP) Source: Shutterstock Expense Ratio: 0.2% Many so-called experts will tell investors only to add prosaic, cap-weighted funds to Roth IRAs. The long-term performance of the Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP), the largest equal-weight ETF in the U.S., indicates Roth IRA investors could miss out on some impressive returns by solely focusing on cap-weighted strategies. As its name implies, RSP is an equal-weight ETF and none of its 505 holdings command weights of more than 0.25%. Equal-weight strategies often thrive due to exposure to the size or value factors. In RSP's case, it is more a case of the latter because the fund features scant small-cap exposure but does devote over 40% of its weight to value stocks. Since inception and over the past decade, RSP has outperformed the cap-weighted S&P 500, according to issuer data. As on this writing, Todd Shriber does not own any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Consumer Stocks to Buy for Income * 7 Dark Horse Stocks You Really Need to Look at for 2019 * 7 Retail Stocks to Buy for the Rise of Menswear Compare Brokers The post 7 of the Best Funds to Own in a Roth IRA appeared first on InvestorPlace.
Last year was another banner year for Vanguard, the second-largest U.S. issuer of exchange-traded funds (ETFs). As of Dec. 27, Vanguard ETFs listed in the U.S. had $841.70 billion in assets under management, trailing only BlackRock's iShares brand. When 2018 ended four Vanguard ETFs ranked among the year's top 10 ETFs in terms of new assets added. Only iShares had more funds on that list with five. One of the reasons Vanguard ETFs are so popular with advisors and investors is the issuer's reputation for having some of the lowest fees in the fund industry. While there are some examples of ETFs with lower expense ratios than competing Vanguard ETFs, Vanguard has a well-deserved reputation for being one of the low-cost leaders in the index fund and ETF industry. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Oversold Stocks Due for a Bounce Here are some of the best Vanguard ETFs to consider in 2019: ### Vanguard FTSE Europe ETF (VGK) Expense ratio: 0.10% per year, or $10 on a $10, 000 investment. European stocks suffered through a dismal 2018, as highlighted by the Vanguard FTSE Europe ETF (NYSEARCA:VGK) losing almost 18% for the year. VGK finished 2018 residing nearly 13% below its 200-day moving average, a technical indicator the fund has not closed above since the second quarter. VGK follows the FTSE Developed Europe All Cap Index and its geographic selection universe includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom, according to Vanguard. Much of the Europe rebound thesis revolves around low valuations. VGK's price-to-earnings ratio is just over 13, a discount to the S&P 500. In order for this Vanguard ETF to shine in 2019, European geopolitical volatility needs to ease and catalysts beyond valuation and "it cannot get much worse for European stocks" need to emerge. ### Vanguard Value ETF (VTV) Expense ratio: 0.05% per year Last year was another challenging one for value stocks, but the fourth-quarter slide in growth and momentum has some market observers speculating that investors will favor more defensive value fare in 2019. The Vanguard Value ETF (NYSEARCA:VTV), one of the cheapest value funds on the market, lost nearly 8% last year and trailed the S&P 500. Like many value funds, this Vanguard ETF was hamstrung in 2018 by a large combined weight to the financial services and energy sectors. Those sectors, two of the worst-performing groups in the S&P 500 last year, combine for nearly 31% of VTV's weight. * 7 Stocks to Buy Down 20% in December As is the case with European stocks, much of the case for value stocks in 2019 revolves around investors saying enough is enough with the declines and earnestly rotating away from growth into value. Investors added $2.54 billion to VTV in the fourth quarter, indicating some are willing to bet on a value rebound in 2019. ### Vanguard High Dividend ETF (VYM) Expense ratio: 0.08% per year The combination of rising interest rates and weakness in the broader market hampered high dividend strategies, such as the Vanguard High Dividend ETF (NYSEARCA:VYM), in 2018. This Vanguard ETF finished 2018 with a loss of nearly 9%. If investors flock to defensive sectors in 2019, something that started happening late last year, VYM could be one of the best Vanguard ETFs in the new year. "A Reuters analysis of 2019 outlooks from 10 major financial institutions found eight, including Morgan Stanley, Goldman Sachs and Barclays, with 'overweight' ratings on at least one defensive sector for 2019," reports Reuters. "That marks a big change from last year, when just two of those banks favored any defensive sectors." VYM, which yields 2.78%, allocates about 35% of its combined weight to the defensive consumer staples, healthcare and utilities sectors. ### Vanguard FTSE Emerging Markets ETF (VWO) Expense ratio: 0.14% per year Something investors heard plenty of in 2018: Emerging markets stocks got punished. From China to Chile and many, many more, emerging markets stocks were a dismal asset class last year as reflected by an annual decline of 17% for the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO). VWO, one of the largest emerging markets ETFs by assets, shares some similarities with the aforementioned VGK heading into 2019. Like European stocks, emerging markets equities look like value plays and there is a chorus of investors willing to say things will not get much worse for developing economies. If the Federal Reserve slows its pace of rate hikes in 2019 and the dollar weakens, there could be upside to be had with emerging markets equities. * 7 Tech Stocks Without China Exposure "There are at least some reasons to be hopeful for emerging Asian assets: oil prices have dropped about 40% from their October peak, which is a boon for countries that import the commodity. Central banks remain vigilant, while a growing number of analysts, including those at Goldman Sachs Group Inc. and UBS Group AG, say the dollar is close to its peak," according to Bloomberg. ### Vanguard Short-Term Corporate Bond ETF (VCSH) Expense ratio: 0.07% per year One way for investors to Fed-proof fixed income portfolios is to lower duration risk. The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) is one of the best Vanguard ETFs on the short-duration side of the ledger. Plus, this Vanguard fund does not skimp on yield. VCSH has a yield of 2.58%, which is solid when considering the fund's average duration is just 2.7 years. This Vanguard ETF holds over 2,200 investment-grade corporate bonds with an average maturity of 2.9 years. Over 53% of VCSH's holdings are rated AA or A while 45% are rated BBB. This Vanguard ETF outperformed the longer duration Markit iBoxx USD Liquid Investment Grade Index by about 600 basis points last year. ### Vanguard Mid-Cap Value ETF (VOE) Expense ratio: 0.07% per year As is the case with the aforementioned VTV, investors embracing the value factor in 2019 would benefit the Vanguard Mid-Cap Value ETF (NYSEARCA:VOE). Mid-cap stocks are coming off a rough 2018 and value stocks were among the more egregious offenders in that category. This Vanguard ETF lagged the S&P MidCap 400 Index by about 240 basis points last year. VOE holds 204 stocks with a median market value of $13.1 billion, which is just outside of mid-cap territory. Like large-cap value strategies, this Vanguard ETF has a large financial services weight (24.50%). Consumer sentiment is important to the fortunes of this Vanguard ETF as the two consumer sectors combine for 27.20% of VOE's roster. * 5 Turnaround Stocks to Buy as They Rise Amid the Chaos VOE's rock-bottom annual fee makes it cheaper than 94% of competing funds, according to Vanguard data. ### Vanguard Tax-Exempt Bond ETF (VTEB) Expense ratio: 0.09% per year After establishing a rich tradition in the municipal bond index fund and mutual fund arenas, Vanguard got into muni ETFs with the Vanguard Tax-Exempt Bond ETF (NASDAQ:VTEB). This Vanguard ETF follows the S&P National AMT-Free Municipal Bond Index, one of the most widely followed gauges of municipal bonds. In terms of sheer number of holdings, the $3.7 billion VTEB is one of the largest municipal bond ETFs as it is home to nearly 4,200 bonds. This Vanguard ETF's holdings have an average maturity of 13.4 years an average duration of 5.9 years. As is to be expected with investment-grade municipal bond funds, credit risk is not an issue with this Vanguard ETF as over 90% of its holdings are rated AAA, AA or A. As of this writing, Todd Shriber owns shares of VWO. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Top Stock Picks From the Street's Best Analysts * 7 Tech Stocks Without China Exposure * 5 Strong-Buy Stocks That Crushed 2018 Compare Brokers The post 7 Top-Rated Vanguard ETFs to Buy in 2019 appeared first on InvestorPlace.
ETF Trends Publisher Tom Lydon wrote a piece for Fox Business identifying the opportunities abound for investors in 2019 after what’s been a stormy 2018 fraught with market challenges, such as trade wars, ...
This year has been a stark contrast to the steady bull market we enjoyed in 2017 as 2018 was marked by bouts of volatility, forcing ETF investors to adapt to the changing conditions. For example, growth ...
Value ETFs seek to capitalize on inefficiencies in the market and have the potential to deliver higher returns with lower volatility.