Best Index Funds and ETFs to Hold in Your Roth IRA

Why Index Funds Excel in a Roth IRA

Because a Roth IRA charges no capital gains taxes and no dividend taxes, it is the ideal vessel for high-growth, equity-heavy assets.

Recommended Asset Classes

• Broad Total U.S. Stock Market (e.g., VTSAX / FZROX / VTI): Gives you exposure to large, mid, and small-cap American companies with expense ratios as low as 0.00% to 0.03%.
• S&P 500 Index (e.g., VOO / FXAIX / SPY): Delivers proven, resilient returns across America’s 500 largest publicly traded corporations.
• Total International Stock Index (e.g., VTIAX / VXUS): Provides global diversification across developed and emerging economies.

Avoid Holding Cash Long-Term

Remember: Opening a Roth IRA and depositing cash is only step one. You must proactively log into your brokerage account and purchase investment funds, or your money will sit idly in a cash settlement fund earning minimal interest.