ETFs spread your money across many different securities, making them a smart choice for retirement money. For maximum diversification, avoid ETFs with overlapping investments. When you buy these four ETFs, you'll automatically invest in stocks, real estate, and bonds. This may be true, but it's not really relevant to retirement accounts.
Many great low-cost 401 (k) plans offer a combination of index funds and actively managed funds. Like most ETFs, index mutual funds are considered passive investments because they reflect an index. They can also be a low-cost form of investment, as many have annual expenses of less than 0.10%. Both mutual funds and exchange-traded funds (ETFs) offer diversification and professional investment management.
Whether you're trying to maximize the growth of your Roth IRA or limit the volatility of your 401 (k), there are ETFs that can provide you with everything you need to meet your retirement goals.
