Category: Articles

Markets This Week: 5 Key Things to Watch (Oct. 5-9, 2026)

As geopolitical and inflationary tensions continue to linger, there are plenty of news developments ahead in the markets this week that should provide more insight into the health of the US economy and stock market. 1. US Services PMI One important piece of data to keep an eye on is the US Services PMI for September, which will be released on Monday, October 5th at 9:45 a.m ET. Data in recent months has exceeded expectations, as strong consumer demand has helped offset weaker growth in other areas.1 US Services PMI Data Recent growth in the services sector has also helped to offset comparatively slower growth in the US manufacturing sectors.2 Keep an eye on this new monthly data to see if this trend continues or if there is a reversal in this momentum. » Start investing today: Explore top brokerage accounts with our detailed review 2. US Trade Balance Another important piece of data to watch in the markets this week is the release of US trade balance data on Tuesday, October 6th at 9:45 a.m ET. Recent data from the beginning of Q3 was very concerning, as the US trade deficit reached a high not experienced since March 2025.3 The US export market has been showing concerning signs, as the US economy’s exports recently slumped by 2.1% in July, according to data released in early September.4 This data should provide a better picture of the health of the US economy amid the trade war and geopolitical tensions. 3. Consumer and Labor Market Trends The combination of prolonged interest rates and sticky inflation has made things much harder for consumers in recent quarters. There are several important pieces of data to keep an eye on this week, which will complement recent inflation data: Consumer credit data will be released on Wednesday, October 7th at 3 p.m ET. Weekly jobless claims will be released Thursday, October 8th at 8:30 a.m ET. University of Michigan preliminary consumer survey will be released on Friday October 8th at 10:00 a.m ET. ETFs like the State Street Consumer Staples Select Sector SPDR ETF (XLP), which performed very well this year, could be worth monitoring.5 State Street Consumer Staples Select Sector SPDR ETF Performance Consumer staples stocks are generally perceived as a safer bet amid economic tensions and have so far performed very well in the market. Be on the lookout for any changes in consumer sentiment. » Ready to invest for retirement? Check out our review on the top IRA accounts 4. Tech Stocks and Inflationary Concerns Tech stocks have still rallied by nearly 8% in the past month, despite the recent rate hike and inflationary concerns in the market. In particular, it is a good idea to keep a close eye on semiconductor stocks, which have been performing well amid strong earnings growth and acquisition activity.6 The weaker than expected Jobs report also helped to support sentiment for tech stocks. Many investors took this as a sign that the Fed may have more of a reason to delay rate hikes in upcoming meetings.7 Another important trend to monitor that will impact tech equities is the energy markets. Any long-term inflationary fears could spark the risk of additional rate hikes, a move that could deter tech equity investors. 5. Earnings to Watch This Week There will also be a large number of significant earnings released for consumer companies in the US stock market. Company Earnings Release Constellation Brands Tuesday, October 6th after the market closes Levi Strauss Wednesday, October 7th after the market closes Pepsico Thursday, October 8th after the market closes Delta Airlines Friday October 9th after the market closes These results represent a balance of key themes in the US economy, and should provide more data regarding the health of US consumers. » Stay ahead of your finances: Join our free newsletters today

Markets This Week: 5 Things to Watch (Sept. 28–Oct. 2, 2026)

This week is full of exciting developments in the markets. This week’s note covers some of the top economic developments in the United States, Europe, China, and Japan, and also covers major earnings announcements. 1. New Employment Data There will be multiple pieces of labor market data released in the markets this week. Weekly jobless claims on Thursday at 8:00 a.m ET Unemployment rate and average monthly earnings data on Friday at 8:30 a.m ET Latest data from August showed a surprise rebound in labor market activity, as the economy added 162,000 new jobs and the unemployment rate remained at 4.1%.1 US weekly jobless claims also fell to a new low last week, indicating a stronger labor market.2 However, Investors should still watch for new data, especially since consumers are struggling with ongoing inflation and higher interest rates. » Start investing today: Explore top brokerage accounts with our detailed review 2. Q3 2026 Growth Estimates New Q3 2026 growth estimates will also be released this week on Wednesday at 8:30 a.m. ET. A recent survey from the Philadelphia Federal Reserve Bank projects that the US economy will grow by 2.2% in Q3 2026, notably higher than previous estimates.3 This would represent a massive recovery from growth in previous quarters and could spark more optimism in the markets this week.4 This is an important metric to monitor, as investors have been very cautious about recent rate hikes, the inflationary outlook, and long-term global growth prospects. 3. Consumer Sentiment Investors should also keep a close eye on consumer stocks, as new consumer data points will be released in the markets this week. Below are some of the major reports to keep an eye on: Consumer confidence data released on Tuesday, September 29th at 10:00 a.m ET Personal income and consumer spending data on Wednesday, September 30th at 8:30 a.m ET Average hourly earnings on Friday, October 2nd at 8:30 a.m ET According to recent data from McKinsey, consumer sentiment has remained steady relative to Q2 2026.5 Nevertheless, this data is very important to monitor, as ongoing geopolitical tensions and inflationary concerns have put pressure on US consumers. The iShares US Consumer Staples ETF (IYK) has still pulled back by 6% this year on broader macro concerns. » Ready to invest for retirement? Check out our review on the top IRA accounts 4. Global Macro News It’s also important to monitor key economic developments in other global markets this week, including Japan, Europe, and China. Date New Economic News Monday September 28th China industrial profits data Tuesday September 29th Australia’s Central Bank will make a decision about interest rates Japan Leading Indicators Data Wednesday September 30th China’s manufacturing and non-manufacturing PMI data will be released Germany’s retail sales data will be released Thursday October 1st Japan will release new CPI data The Tankan Manufacturing Index for Q3 2026 will be updated in Japan Friday October 2nd The EU will release the Harmonized Index of Consumer Prices The OECD recently lifted global growth projections to 2.9% amid ongoing geopolitical and macro concerns.6 Be on the lookout for new inflation and rate hike data in other markets, as this could result in lower growth in the global economy this year. 5. Earnings to Watch This Week Below are some of the top earnings releases for this week, which include dominant financial, hospitality, tech, and consumer giants. Earnings Release Schedule Jefferies Group Monday, September 28th after the market closes Carnival Corporation Tuesday September 29th before the market opens Micron Technology Wednesday, September 30th after the market closes Accenture Thursday, October 1st before the market opens Nike Thursday, October 1st after the market closes Earnings results from major tech companies like Micron Technology and Accenture could have a spillover impact on other tech equities. » Stay ahead of your finances: Join our free newsletters today

VT vs. VTI & VXUS: The Best Way to Own the Whole World Market

What Is VT? Can one ticker really buy you the whole stock market? That is the promise behind the Vanguard Total World Stock ETF (VT). Buy VT and you hold a long position in stocks across North America, Europe, the Pacific and emerging markets, in one line. Two funds reach substantially the same stocks, so the question is the packaging cost. Start with the case for owning a single ETF. What’s Inside VT: Holdings and Index The Vanguard Total World Stock ETF is a world stock index fund wrapped as an ETF, and Vanguard tracks the index rather than picking stocks. This ETF owns 10,088 common stocks and has $102 billion in net assets.1 Its sixth-largest holding is Taiwan Semiconductor Manufacturing, at 1.52%. Inside the FTSE Global All Cap Index The idea behind the fund is to track the FTSE Global All Cap Index, a market index reaching large-, mid- and small-cap stocks across developed and emerging countries. Breadth is the point: a world stock index fund built from big names alone skips thousands of smaller stocks. Because it is designed to track the performance of the FTSE Global All Cap Index rather than beat it, your investment return is that minus costs. Why Market Capitalization Sets the Weights Market capitalization decides where your money goes. Bigger company, bigger slice, and nobody at Vanguard votes on it. VT’s median market cap ran $159 billion as of August 31, 2026, so the middle of the fund is large even though the index reaches down the size scale. The U.S. dominates by market cap, not by anyone’s choice. » Holding other funds too? You may want to check how much two funds actually overlap. Expense Ratios Compared The table you see above does the work. VT charges 0.06%, VTI 0.03%, VXUS 0.05%, and the net assets column shows where the market has voted. » Want the U.S. comparison? See how VTI compares with an S&P 500 fund. What the Expense Ratio Costs You On $10,000, a 0.06% expense ratio costs you just $6 a year. VTI’s 0.03% costs $3. Build the two-fund version at roughly 63% U.S. and 37% international and your blended expense ratio comes in near 0.037%, saving about $2 a year. Real, but small. The fund you hold through a rough decade counts for a lot more. How Much International and Emerging Markets Exposure You Get “International” covers several very different markets, and the Vanguard Total International Stock ETF (VXUS) shows it: Europe 36.38%, Pacific 28.46%, emerging markets 26.21%, as of August 31, 2026.2 VT bundles those same stocks of companies into one equity holding at 37.7% foreign. Owning the second fund is what puts that split under your control. Most of it is boring in the best way: the companies located in Europe and the Pacific are household names that behave like U.S. large-cap stocks. How Much of the World Is Emerging Markets Emerging markets are 9.96% of VT and 26.21% of VXUS. Both are correct: VT dilutes emerging markets with its U.S. allocation, while VXUS is built ex-U.S. Want more than 10%? The two-fund build lets you dial it directly, and with VT you would bolt a separate emerging markets fund on top. See other international ETFs worth knowing. » Start investing today: Explore top brokerage accounts with our detailed review What Is VTI? (Vanguard Morningstar Total Stock Market ETF) On July 29, 2026, Vanguard renamed VTI, formerly the Vanguard Total Stock Market ETF, to the Vanguard Morningstar Total Stock Market ETF. It tracks the Morningstar U.S. Total Market Index, previously called the CRSP U.S. Total Market Index.3 Morningstar rebranded the index family and Vanguard followed, saying the changes “will not affect the funds’ investment objectives or how they are managed.”4 VTI holds 3,507 stocks at 0.03% with $2.3 trillion in net assets, close to the whole U.S. stock market in a ticker. Curious how many ETFs a portfolio really needs? How the VTI + VXUS Two-Fund Portfolio Works You buy a U.S. market ETF (VTI) and an international one (VXUS) and set the ratio. VT fixes it at whatever global market capitalization says today. Run VTI and VXUS side by side and you control it, at the cost of rebalancing by hand once a year, which can add to your return or cut it. Add a bond fund for the three-fund build. Where VTI Fits VTI is the U.S. leg and does the heavy lifting: 3,507 stocks, 0.2% foreign holdings, a $348.3 billion median market cap. Pair VTI with VXUS at roughly 63/37 and your combined holdings number about 12,300, against VT’s 10,088. The two track different index universes, which is where the difference comes from. » Ready to invest for retirement? Check out our review on the top IRA accounts Where Each Build Belongs at Tax Time Here the two builds stop being identical. Foreign governments withhold tax on the dividends these funds receive, and the IRS says that if you “paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income,” you may be able to claim a credit or a deduction.5 Being subject to U.S. tax on the same income is why the credit reaches you in a taxable account and not inside an IRA. A second condition decides which fund can hand it to you: the credit passes through only when “more than 50% of the value of the Fund’s assets consists of securities of foreign corporations” at year end.6 VXUS, at 99.0% foreign, clears it. VT, at 37.7%, does not, so a VT holder never sees the credit in any account. That puts a long position in VXUS in the taxable account, where it can lift your net investment return. See a momentum-tilted international fund. Pros and Cons of Owning Only VT Both columns are real. What you get What you give up One holding, no rebalancing Control of the U.S. and international split Automatic reweighting as markets move Tax

Markets This Week: 5 Things to Watch (September 21-25, 2026)

The stock market is poised for another eventful week following ongoing geopolitical tensions and a new rate hike decision from the Federal Reserve. Key market news to watch this week includes new manufacturing, labor market, and real estate data, along with sector-level developments. 1. Tech Stocks One important sector to continue following in the markets this week is the technology sector. Two recent areas of concern include the Federal Reserve’s decision to hike interest rates, as well as the discourse from major AI companies about slowing down AI developments.1 Any additional geopolitical shocks could increase concerns about inflation, potentially triggering a sector sell-off. Moreover, rising US Treasury yields have recently reached a high not experienced since 2007, which may prompt some investors to rotate out of equities into safer options.2 The iShares Technology ETF (IYM) has been very volatile this year, but has still rallied by around 28.6%. » Start investing today: Explore top brokerage accounts with our detailed review 2. Manufacturing PMI Investors should also keep an eye on the US Flash Manufacturing PMI data, which will be released on Wednesday, September 23rd at 9:30 a.m ET. The US manufacturing sector has begun to show initial signs of a slowdown. Manufacturing activity fell last month, after seven previous months of increases.3 While AI investments have continued to pour in, supporting new infrastructure developments, it has not been enough to offset weakness in other areas.4 Keep an eye on various manufactured ETFs this week, including the iShares U.S. Manufacturing ETF (MADE) and the Vanguard Industrials ETF (VIS). 3. Labor Market Updates There will also be new weekly jobless claims data released in the markets this week on Thursday, September 24th at 9:30 a.m ET. Previous data was very favorable, although it was slightly overstated because of the holiday impact.5 The unemployment rate has also remained steady at 4.1%, which was one of the data points that supported the Federal Reserve’s decision to hike interest rates. One important factor to note is that labor market activity has been inconsistent across various areas of the economy. For example, food services and accommodations job growth experienced similar weakness as it did in 2020, while healthcare and social assistance has continued to drive labor market growth.6 » Ready to invest for retirement? Check out our review on the top IRA accounts 4. New Home Sales Another important area of the market to watch is the real estate sector. New home sales data will be released at 10:00 a.m ET on Thursday, September 24th. The real estate industry has begun showing signs of a cooldown, and pending home sales data recently fell by around 4% YoY in August.7 Pending Home Sales Monthly Data One additional concern in the industry is that mortgage rates will increase following the Fed’s rate hike decision. The 30 year mortgage rate recently approached 7%, which may put more pressure on potential new home buyers.8 Be sure to keep an eye on how real estate equities respond to these macro tensions. The Vanguard Real Estate ETF (VNQ) has declined by around 6% in the past month due to these weaker conditions. 5. Consumer Stocks Consumer stocks may also have an eventful week, as consumers face increased pressure from rising inflation and interest rates. There are several major consumer equities that will be releasing earnings in the markets this week. Company Earnings Release Date YTD Return Autozone Tuesday September 22nd before the market opens -15.8% Costco Thursday September 24th after the market closes 3.8% General Mills Wednesday September 23rd before the market opens -21.8% These results may provide more insights into the sentiment for consumer staples and consumer discretionary stocks. » Stay ahead of your finances: Join our free newsletters today

Markets This Week: 5 Things to Watch (September 14-18, 2026)

There are plenty of new developments ahead in the markets this week, which could result in additional volatility. Most notably, the Federal Reserve is poised to announce updates to its interest rate policy amid heightening inflationary concerns. 1. Oil Price Surge Oil prices have increased strongly this month due to rising tensions in the Middle East. Traffic in the Strait of Hormuz has continued to stall, and the Houthis recently gained control of the Port of Mocha in Yemen.1 The price of crude oil topped $100/barrel last week, and could move higher if supply-side shocks continue in the markets this week.2 The Vanguard Energy ETF (VDE), which has rallied around 46% YTD, could experience additional volatility this week amid new geopolitical developments. » Start investing today: Explore top brokerage accounts with our detailed review 2. US Rate Decision One of the most important events in the markets this week will likely be the Federal Reserve’s decision on interest rates. The Federal Reserve will make this decision on Wednesday at 2 p.m ET. Inflation remained unchanged at 3.4% last month, but the Federal Reserve will also have to consider the impact of recent energy price shocks.3 The recent Jobs report was also very strong, which may also put pressure on the Fed to hike rates, especially if inflation looks like it will increase in September and subsequent months.4 Sectors like technology could be some of the top market movers this week if there are meaningful policy updates. 3. Global Macro Updates This week will also be very eventful in other global markets, as many Central Banks will make interest rate policy decisions.5 The Bank of England and Bank of Japan will also make new interest rate policy decisions on Thursday and Friday, respectively. Investors will likely be closely following all of these developments, as a massive push for rate hikes could spark concerns about the Federal Reserve’s success in keeping inflation in check. Moreover, widespread rate hikes could also result in slower global growth projections. The latest projections from the International Monetary Fund (IMF) are calling for 3% global growth, but lingering economic and political risks could result in growth downgrades and other economic shocks.6 » Ready to invest for retirement? Check out our review on the top IRA accounts 4. Retail Sales Investors should also be on the lookout for new U.S. retail sales data, which will be released on Wednesday at 8:30 a.m ET. Last month’s report was a bit concerning, as retail sales dipped following stronger performance in May and June.7 Inflation has lingered at 3.4% in recent months, and any additional energy price shocks would weaken consumer sentiment in subsequent months. The VanEck Retail ETF (RTH) has pulled back by nearly 7% in the past month on the back of these broader macro fears. 5. Real Estate Data The real estate industry will also have a lot of exciting news released this week. The Pending Home Sales Index will be released on Thursday at 10:00 a.m ET, and Housing Starts data will also be released on Thursday at 8:30 a.m ET. Investors should continue to monitor the recent industry cooldown, as home sales recently fell by 2% in August.8 Moreover, the upcoming interest rate decision from the Federal Reserve this week could also strongly impact the real estate industry. The average mortgage rate in the United States recently rose to 6.85%, the highest rate since June 2025.9 Keep an eye on leading real estate ETFs, such as the iShares US Real Estate ETF (IYR) and the Vanguard Real Estate ETF (VNQ). » Stay ahead of your finances: Join our free newsletters today

The 5 Best Gold ETFs of 2026 (My #1 Pick and Why)

Why Gold ETFs Belong in a Portfolio Owning gold used to mean owning the metal. You buy coins or bars, then you deal with storage. Insurance costs money every year. Selling later means finding a dealer and taking whatever price they quote that day. Gold ETFs trade all of that for convenience. You buy shares in a normal brokerage account or an IRA, the fund tracks bullion, and shares are traded whenever the stock exchanges are open. Many investors use gold to protect a portfolio against inflation and the kind of market stress where stocks and bonds fall together. That is the whole case. You never hold a single ounce yourself. And if you are deciding where a specific $1,000 should go, we answered that question on its own page. » Start investing today: Explore top brokerage accounts with our detailed review How Physical Gold Funds Work A share of a physically backed gold ETF is structured as a claim on real metal in a vault. It is not a futures contract or a debt security, which is where confusion about precious metals funds starts. The trust buys physical gold, stores it, and issues shares against what it holds. Price tracks the metal closely after fees. Nothing about the structure is complex, so cost ends up being the main thing separating one gold ETF from another. Two gold ETFs holding the same physical gold differ mostly by what they charge. » New to the structure? Our guide on how to invest in ETFs covers the mechanics. What Gold Bullion Backing Means Gold bullion backing has one wrinkle worth understanding before investors buy shares. The trust pays its expenses by selling a small amount of the metal it holds, month after month. So the gold bullion behind each share slowly declines, even on a day when the price does nothing. Nothing is hidden about the process. It is the honest version of the line that gold pays no dividends, so there is no income to tax while you hold. The 5 Best Gold ETFs of 2026 Here are the five, in order of size. Four of them hold physical gold and one holds miners. For a sense of how these funds rank across the whole market, see the largest ETFs in the market by assets. SPDR Gold Shares (GLD): Best for Active Traders GLD launched on November 18, 2004, the first US gold ETF and still by far the largest, with $145.98 billion in assets under management as of August 12, 2026.1 Size is the product here. It carries a large listed options market for investors who trade around a position. Its own 30-day median bid/ask spread is 0.01%. You pay 0.40% a year for that, the highest expense ratio of the four physically backed funds. On $10,000, for example, that is $40 annually. For a trader moving in and out, $40 is noise against execution quality. Investors holding twenty years see that $40 compound against them, even when the returns underneath are compounding too. That is why the rest of this list exists. iShares Gold Trust (IAU): The Lower-Cost Alternative IAU arrived two months after GLD, on January 21, 2005, second largest here at $65.01 billion in total assets. The sponsor fee is 0.25% against GLD’s 0.40%.2 Same $10,000, and now the cost is $25 a year instead of $40. Its own 30-day median bid/ask spread is 0.01%. For most investors that combination of a lower expense ratio and heavy trading has been enough. IAU was the default answer among gold ETFs for years. Then the newer minis showed up and undercut it. SPDR Gold MiniShares (GLDM): Best for Long-Term Investors State Street runs GLDM alongside GLD, holding the same metal under the same structure, at a gross expense ratio of 0.10%.3 That is a quarter of GLD’s fee. On $10,000 you pay $10 a year. GLDM launched June 25, 2018 and now holds $30.39 billion, so the cheap option stopped being the small option a while ago. Its own 30-day median bid/ask spread is 0.01%. Run that fee difference against GLD across thirty years and the advantage stops looking cosmetic. This is the fund I point investors toward when they are buying gold and have no plans to touch it. VanEck Gold Miners (GDX): Mining Company Exposure GDX is a different animal. Buying it buys 66 gold mining companies, not gold.4 Miners carry operating costs, debt, country risk and management decisions that a bar of metal never has. When gold prices run, good miners tend to run harder. A company with a bad quarter can still fall while the metal holds steady. The fee is 0.51%, highest in this lineup, on $27.99 billion in total net assets. The top 10 holdings are 61.53% of the fund, so this is a concentrated stock position wearing a commodity label. It pays a small distribution too, which no physical gold fund does. Read it alongside how many ETFs you actually need first. iShares Gold Trust Micro (IAUM): The Lowest Expense Ratio IAUM carries the lowest expense ratio on this page at 0.09%, one basis point under GLDM.5 On $10,000 that works out to $9 a year against GLDM’s $10. The saving is real. It is also one dollar. IAUM launched June 15, 2021, the newest of these top gold ETFs, and at $7.47 billion the smallest. Its own 30-day median bid/ask spread is 0.02%. None of that is a warning to investors. It is a shorter record with less size behind it. If the cheapest possible number is what you want, this is the one. How the Top Gold ETFs Compare Fund Issuer Expense Ratio Net Assets Inception SPDR Gold Shares (GLD) State Street 0.40% $146B November 18, 2004 iShares Gold Trust (IAU) iShares 0.25% $65B January 21, 2005 SPDR Gold MiniShares (GLDM) State Street 0.10% $30B June 25, 2018 VanEck Gold Miners (GDX) VanEck 0.51% $28B May 16, 2006 iShares Gold Trust Micro (IAUM) iShares 0.09% $7B June 15, 2021 Net assets as of

6 Best Small-Cap ETFs to Buy in 2026

Why Small Cap Stocks Earn a Place Beside Your US Equities You already own the big companies. If your portfolio holds an S&P 500 index fund, the bottom rung of American business is missing or weighted so lightly it rounds to nothing. Start with the arithmetic. On a $100,000 portfolio a 5% small cap sleeve is $5,000. Enough to move your return in a year when small cap stocks run, small enough that a 30% drawdown is minimal and can be recovered. All six funds below returned more than 32% over the trailing twelve months ended June 30, 2026. The appeal is diversification with an economic basis under it. Investors who own only an S&P 500 fund miss small cap stocks entirely, and the risk profile is why many hesitate. Small cap stocks can earn revenue differently than mega cap stocks, carry more debt sensitivity, and respond to domestic demand rather than a global sales mix, which your US equities capture. Size the sleeve for the drawdown, not the rally. Volatility cuts both ways, and the same volatile swing that lifts these stocks 40% takes it back. Before you invest a dollar, settle how many ETFs you need. » Start investing today: Explore top brokerage accounts with our detailed review What Counts as a Small Cap Stock Ask three index providers what a small cap stock is and you get three different answers. That settles which stocks end up in your small cap ETF. The cleanest answer comes from the Russell 2000. At the April 30, 2026 rank day, the market cap breakpoint separating large caps from small caps rose 24% to $5.7 billion, and its smallest company carried a market cap of $146.4 million.1 So within the Russell 2000 the market cap range representing small cap stocks runs from roughly $146 million to $5.7 billion. Any fixed dollar cutoff ages badly. A rule of thumb you learned as “under $2 billion” was true against a different market cap range and stopped being true. Total market capitalization drifts upward and the small cap index redraws its boundary. FTSE Russell now reconstitutes the Russell US indexes semi-annually, changed from annual effective 2026. Set that beside what the S&P 500 actually holds and the contrast drives everything below. The 6 Best Small Cap ETFs, Compared The six best small cap ETFs on one page, with the metrics that decide most choices. ETF iShares Core S&P Small-Cap ETF (IJR) iShares Russell 2000 ETF (IWM) Avantis US Small Cap Value ETF (AVUV) Vanguard Morningstar Small Cap Growth ETF (VBK) Avantis International Small Cap Value ETF (AVDV) Invesco S and P SmallCap Momentum ETF (XSMO) Index S&P SmallCap 600 Russell 2000 Actively managed Morningstar US Small Cap Growth Actively managed S&P SmallCap 600 Momentum Inception 5/22/2000 5/22/2000 9/24/2019 1/26/2004 9/24/2019 3/3/2005 Net Assets $112B $82B $29B $25B $19B $3B Expense Ratio 0.06% 0.19% 0.25% 0.05% 0.36% 0.36% Holdings 671 1,965 792 544 1,717 108 Top Ten % 7.32% (6/30) 3.42% 8.54% 9.3% 8.15% 24.28% 30-day SEC Yield 1.48% (7/31) 1.14% 1.21% 0.39% 2.64% 0.69% Past Year 37.42% 40.59% 39.00% 32.73% 34.63% 38.60% 3 year Avg. 15.98% 18.44% 19.06% 17.46% 26.06% 25.41% 5 year Avg. 7.30% 6.86% 12.29% 5.37% 13.81% 12.30% 10 year Avg. 11.47% 11.53% Not applicable 12.16% Not applicable 15.50% All returns are NAV basis, standardized, average annual, for periods ended June 30, 2026. Now the part comparison tables get wrong: more holdings is not automatically more diversification. IWM holds 1,965 stocks against IJR’s 671, and the two are not nested sets. Different indexes, different breakpoints, different entry rules, and IWM’s holdings reach further down the size and liquidity scale, where trading costs run higher. The bigger number is a poor guide to risk. Core Exposure: The Cheapest Core Small Cap ETF on the List IJR is the plain core small cap ETF here. It tracks the S&P SmallCap 600, held 671 stocks on August 12, 2026, and charges 0.06%.2 Investors underrate this. On $10,000, 0.06% costs $6 a year against $19 for IWM. Compounding can work on your returns or on your costs, so across thirty years the cheaper small cap ETF keeps more of whatever its index delivers. The top ten holdings account for 7.32% of assets on June 30, 2026, unconcentrated by any normal standard, though IWM’s wider net puts its top ten at 3.42%. One caution: the largest is a BlackRock cash fund at 1.96%, so these are the ten largest holdings, not the ten largest companies. IJR’s 30-day SEC yield was 1.48% on July 31, highest of the four that print one. Small cap dividends are not the reason to own this category, though a fraction of your return arriving as cash makes volatile years easier. Start with how to invest in ETFs. Broad Exposure: Every Small Cap the Russell Can Hold IWM is the small cap ETF most investors picture and owns more stocks than anything else here, holding 1,965 positions on August 12, 2026, tracking the Russell 2000.3 So does owning 1,965 companies buy anything the 671 do not? Some, and less than the count suggests. The Russell 2000 takes approximately the 2,000 smallest securities by market cap and index membership, with no profitability screen, so IWM owns companies that would fail the S&P SmallCap 600 screen at the point of addition. That widens the range of outcomes rather than raising the return you should expect. IWM led these funds at 40.59% over one year and trailed IJR over the five-year performance window, 6.86% against 7.30%, on the same inclusion policy. The fee is 0.19%, three times IJR’s, for a small cap ETF that tracks a looser small cap index. Those costs can compound the way returns do, only against you. Value: Where Profitability Meets Price AVUV is actively managed and does not seek to replicate an index.4 That sentence makes some investors close the tab. Active does not have to mean a hunch. Avantis emphasizes smaller stocks trading at low prices relative to book value, weighted

Markets This Week: 5 Things to Watch (August 17-21, 2026)

There are plenty of important pieces of economic data that will be released in the markets this week. Some of the main updates include weekly jobless claims, manufacturing and services data, existing home sales updates, and earnings results for major consumer companies. 1. Additional Federal Reserve Discourse The Federal Reserve will release its July FOMC meeting minutes on Wednesday at 2 p.m ET. This will be one of the most crucial pieces of information released this week, as rate hikes are one of the main hot topics in the markets at the moment. Inflation recently rose to 3.4% YoY in July, largely due to the reduced shock of energy prices during that month.1 US Inflation Rate The Federal Reserve previously voted 9-3 to leave rates unchanged during its last policy meeting.2 Equities have rallied strongly recently due to the reduced fear of rate hikes and energy price shocks. However, inflationary risks have heated up in recent days as oil prices have risen considerably in the past week. » Start investing today: Explore top brokerage accounts with our detailed review 2. Jobless Claims Jobless claims have continued to rise in recent weeks, most recently exceeding the weekly average by 10,000.3 New weekly jobless claims data will be released on Thursday at 8:30 a.m. ET. Although the labor market has remained relatively healthy, this is still an important metric to monitor in the coming months. Additional weaker labor market data could also support the Fed’s ongoing decision to delay rate hikes for the time being.4 Gold mining equities may also continue to respond to labor market data, as they have in recent weeks. The VanEck Gold Miners ETF has rallied by 18% over the past month amid economic and geopolitical fears. 3. Services and Manufacturing Data S&P will release new flash services and manufacturing PMI data on Friday at 9:45 a.m ET. While data from July was very strong, exceeding analysts’ expectations, this is still an important area to monitor as supply-side and inflationary risks linger. Recent sources of growth have been mixed, as stronger consumer spending and AI-related investments helped support growth in Q2 2026.5 However, there is still a lot of uncertainty in other manufacturing sectors, and the United States’ exports have been facing pressure amid new geopolitical risks. Another important piece of broad macro data to monitor is the US leading indicators, which will be released at 10:00 a.m ET on Thursday. This data includes a health check on leading economic and financial indicators, including S&P 500 performance, real estate data, labor market data, and new manufacturing orders. » Ready to invest for retirement? Check out our review on the top IRA accounts 4. Real Estate Updates Investors should also keep an eye on new data in the real estate industry. Existing home sales fell to a new low in July, and the market is beginning to display signs of a cooldown.6   There will be a wide variety of new data released that impacts the industry, including the following: NAHB Housing Market Index released at 10:00 a.m ET on Monday Housing starts released on Tuesday at 8:30 a.m ET Pending home sales released on Tuesday at 10:00 a.m ET Be sure to monitor real estate ETFs like the Vanguard Real Estate ETF (VNQ), which could experience some volatility this week. 5. Earnings Updates This week will also be an eventful earnings release week for major consumer companies, including Home Depot, Lowe’s Corporation, Target, and Walmart. Company Earnings Release Home Depot Tuesday August 18th before the market opens Lowe’s Corporation Wednesday August 19th before the market opens Target Wednesday August 19th before the market opens Walmart Thursday August 20th  before the market opens Earnings results from these companies will provide more data about consumer health, inflationary risks, and overall sentiment in the US economy. Consumer discretionary and staples stocks could be some of the strongest market movers this week if these earnings releases are eventful. Keep a close eye on ETFs like the Vanguard Consumer Staples ETF (VDC) and the Vanguard Consumer Discretionary ETF (VDX). » Stay ahead of your finances: Join our free newsletters today

Best Bitcoin ETFs in 2026: Which Fund Is Right for You?

We selected the five largest Bitcoin ETFs that hold Bitcoin directly and have competitive expense ratios, using fund data available in August 2026. The Five Leading Bitcoin ETFs, Compared Fund (ticker) Sponsor fee Net assets 30-day median spread Bitcoin custodian iShares Bitcoin Trust ETF (IBIT) 0.25% $48.4B 0.03% (Aug 7) Coinbase Custody Trust Company, LLC* Fidelity Wise Origin Bitcoin Fund (FBTC) 0.25% $10.8B 0.04% (Aug 6) Fidelity Digital Assets, National Association Grayscale Bitcoin Mini Trust ETF (BTC) 0.15% $3.8B 0.04% (Aug 7) Coinbase Custody Trust Company, LLC* Bitwise Bitcoin ETF (BITB) 0.20% $2.4B 0.03% (Aug 6) Coinbase Custody Trust Co., LLC ARK 21Shares Bitcoin ETF (ARKB) 0.21% $2.2B 0.05% (Aug 6) Coinbase Custody Trust Company, LLC; BitGo Bank & Trust, N.A.; BitGo New York Trust Company, LLC; Anchorage Digital Bank N.A. *IBIT and BTC each name Anchorage Digital Bank N.A. as an additional bitcoin custodian. IBIT’s prospectus describes it as an available alternative rather than a concurrent one. What a Spot Bitcoin ETF Actually Is For simplicity, many call these products Bitcoin ETFs. They hold Bitcoin directly, giving investors exposure to Bitcoin without having to buy or store it themselves. Technically, these products are structured as commodity trusts, not traditional ETFs. They are regulated by the SEC and must meet federal securities laws, but they do not follow all of the rules that apply to conventional ETFs and mutual funds under the Investment Company Act of 1940. That means they have different requirements around areas such as custody and valuation.1 The SEC approved spot Bitcoin ETFs in January 2024 but made clear that the approval did not endorse Bitcoin itself. No share is insured by the Federal Deposit Insurance Corporation or any other governmental agency. Bitcoin itself is a commodity under the Commodity Exchange Act, and the CFTC keeps general anti-fraud and manipulation authority over virtual currency cash markets, while saying its oversight of those cash markets is limited.2 Share Price and Net Asset Value Are Two Numbers Net asset value is struck once each business day against a reference index, and that index price is the official mark. The price of bitcoin moves overnight and at weekends while the shares do not, because, as we mentioned previously, these funds trade during exchange hours and bitcoin trades 24/7. Authorized participants create new shares when demand rises, redeeming them in blocks called Baskets, and that arbitrage keeps the market price close to net asset value.3 It’s worth noting that discrepancies still appear. In secondary markets the market price is whatever the last buyer paid, so a premium raises what you pay and a discount cuts what you receive. What counts is the change between the premium or discount you buy at, and the one you sell at. Share prices stay closely tied to the price of bitcoin. Closely tied, but not identical. Why Spot Funds Replaced Bitcoin Futures Futures bitcoin ETFs track derivative futures contracts instead of holding real bitcoin. Those futures contracts expire and roll forward, which creates tracking differences and can cut returns when later-dated contracts trade above spot bitcoin. Spot funds hold bitcoin itself in secure regulated storage and track bitcoin more cleanly than bitcoin futures did. Mutual funds transact at the next calculated net asset value once a day; unlike mutual funds, a Bitcoin ETF trades all session on its listing exchange, which for these five means the Nasdaq, NYSE, or Cboe. The 2x Bitcoin Strategy ETF uses futures to target twice a daily return, resets that target every day, and is not a spot fund. » Start investing today: Explore top brokerage accounts with our detailed review Picking the Best Bitcoin ETF for How You Invest Three questions can easily sort a Bitcoin ETF shortlist: how long you hold, how much you move, and who holds the bitcoin. The best Bitcoin ETF for a trader is rarely the best Bitcoin ETF for a buy-and-hold type investor. iShares Bitcoin Trust ETF: Built for Size The most traded Bitcoin ETF is the iShares Bitcoin Trust ETF, which held $48.42 billion on August 7 at a 0.03% median bid/ask spread, with 30-day average volume of 35,697,747 shares.4 It alone publishes a standardized volume figure, so the group runs on median spreads, and it ranks among the largest ETFs in the market. Strength: by far the largest fund here, and the only one publishing average volume, so you can size an order against real data. Limitation: 0.25% ties it for priciest, and BITB matches its spread for less. BTC and BITB: Cheapest to Hold Grayscale’s Mini Trust charges 0.15% against $3.83 billion at a 0.04% median spread.5 Bitwise charges 0.20% against $2.41 billion at 0.03%. It publishes the bitcoin represented by each share an a daily basis and commissions independent proof-of-reserve examinations.6 Strength: BTC’s management fees cost $15 a year on $10,000 against IBIT’s $25, and BITB matches IBIT’s spread for less. Limitation: both are smaller than IBIT, so check live spreads and book depth and use a limit order for size. FBTC and ARKB: Who Holds the Coins Fidelity charges 0.25% and held $10.81 billion as of July 31, 2026 at a 0.04% median spread.7 Its bitcoin is held by Fidelity Digital Assets, a sponsor affiliate rather than an outside firm. ARK 21Shares charges 0.21% against $2.23 billion at 0.05%, the widest here.8 Its latest 10-Q names four custodians across three organizations.9 Four of the five use Coinbase Custody, and three of those four also name Anchorage Digital Bank. Only FBTC uses neither. ARKB lists the longest roster and does not disclose how its bitcoin is allocated among them, so a longer list of custodians tells you less than it appears to do. Fees Against Spreads, and Why Holding Period Decides This is where most Bitcoin ETF comparisons go south. Management fees recur every year you hold; the spread is a one-time trading cost. Which dominates depends on time. On $10,000, IBIT’s 0.25% costs $25 a year against BTC’s $15. BTC’s spread is one basis point wider, roughly $1 per

Markets This Week: 5 Things to Watch (August 10-14, 2026)

There will be multiple events that will impact the markets this week, most notably the release of new inflation data. There will also be several key earnings results releases for companies operating in the healthcare, mining, and technology industries. 1. Real Estate Market The real estate market has faced headwinds in recent months due to rising inflation and the potential for further rate hikes. One important piece of data to follow in the markets this week is the existing home sales data, which will be released on Tuesday, August the 11th at 10:00 a.m ET. Sales fell by 2.4% in June, so this is important data to follow.1 Despite these industry tensions, REITs have had very strong returns this year. Some of these products yield nearly 4%, well ahead of the S&P 500.2 It may also be a good idea to closely monitor other traditional real estate ETFs this week, including the Vanguard Real Estate ETF (VNQ) and the iShares US Real Estate ETF (IYR). Both of these ETFs could be some of the stronger market movers this week. » Start investing today: Explore top brokerage accounts with our detailed review 2. July Inflation Data Wednesday will also be another very important day in the market this week, as new inflation data will be released at 8:30 a.m ET. The Federal Reserve delayed hiking interest rates and is awaiting new data about inflation developments in the United States. According to data from the Federal Reserve Bank of New York, the median inflation projection is 3.6%.3 Last month’s cooldown was largely driven by the correction in energy prices, a trend that will likely also affect July data.4 Markets could respond strongly to this new data, coupled with oil price movements, as investors continue to speculate on the potential for rate hikes in H2 2026. 3. Consumer Sentiment There will also be several important pieces of consumer data released on Friday. July retail sales data will be released on Friday at 8:30 a.m ET, while the University of Michigan preliminary consumer survey will be released at 10:00 a.m ET. Data from last month was notably weaker relative to May, as consumers continued to feel the pressure of inflation.5 Despite this weakened sentiment, select retail equities have rallied strongly in the past month. The State Street SPDR S&P 500 Retail ETF (XRT) has rallied by 3.6% in the past month, while the Amplify Online Retail ETF (IBUY) has increased by 4.8%. » Ready to invest for retirement? Check out our review on the top IRA accounts 4. New Earnings Data Although the majority of major tech and other dominant S&P 500 companies have already announced earnings, there are several important earnings releases to monitor in the markets this week. Monday August 10th Simon Property Group, Rocket Labs, and Barrick Mining Corporation Tuesday August 11th SEA Limited, Lumentum Limited, and Cardinal Health Wednesday August 12th Cisco Systems and Coherent Corporation Thursday August 13th Applied Materials, Brookfield Corporation, and NetEase Inc Friday August 14th Freedom Holding Corporation and CG Oncology Inc. As these earnings results are released, it may also be ideal to follow developments in these areas: Updates from Cisco Systems, NetEase, Rocket Lab and Applied Materials, which could have a spillover impact on sentiment for tech equities Additional financial updates from healthcare giants like CG Oncology and Cardinal Health 5. Commodities Commodities will also likely be a very important theme in the markets this week, especially since there will be new inflation data. Copper will likely be a salient theme this week, as recent supply disruptions coupled with the continued demand for electrification led to a strong price spike last week.6 Precious metals stocks also trounced the S&P 500 last week, and these stocks could be worth monitoring amid the new geopolitical and economic news released in the markets this week. Moreover, there may be continued volatility in the oil markets since the United States and Iran have failed to reach a new agreement.7 » Stay ahead of your finances: Join our free newsletters today

The Best Gold ETF to Invest $1,000 in Right Now

Gold as a Safe Haven Asset Something rattles the market. The dollar slips, inflation headlines stack up, and the cash in your savings account feels less like security than a slow leak. Gold earns its safe haven label by answering to different pressures than stocks and bonds. Governments issue debt, central banks move rates, currencies adjust against each other. Gold sits outside all of that, priced by a global market trading around the world every day. Here’s the honest version. Gold pays you nothing while you hold it, so investing in it works as diversification and as an inflation hedge rather than as the engine of your returns. That stability carries a quiet upside in a taxable account. A dividend fund gives you income every quarter, with a tax bill to match, whether you want it or not. Gold ETFs on the other hand, throw off no dividends, so year to year there is almost nothing to report. The trusts do sell a sliver of metal each month to cover expenses, which passes through as a small reportable amount, and the rest of the bill waits until you sell. That is why most investors reach for gold to protect what they already have. Before adding another position, look at how many funds a portfolio actually needs. » Start investing today: Explore top brokerage accounts with our detailed review How Gold ETFs Work Buying gold ETFs is not going to put bars in your hands. You buy shares that trade on an exchange, and a trust holds the metal for everyone who owns those ETF shares. The mechanics match how to buy your first ETF. Your account shows a ticker, not a safe. Funds That Hold Physical Gold Bullion The largest gold ETFs are trusts that own physical gold bullion, nothing else. The trust buys bars, stores them in a vault, and issues shares against those holdings. A custodian verifies the bars exist, which separates these ETFs from a promise. That structure hands you direct exposure to the actual metal. When gold rises 10%, these gold ETFs tend to track it closely, minus the annual fee. Their share price should track the metal in the vault rather than a manager’s bets on stocks. You never take delivery of physical metal, and never insure a safe. What you own is a claim on the trust’s holdings, priced live on the exchange at a market price anyone can keep an eye on. The Best Gold ETF for $1,000 Three bullion ETFs dominate, all from issuers you’ve heard of, all with identical holdings. Choosing the best gold etf for a $1,000 investment comes down to two numbers, what the trust takes each year and how heavily the fund trades. Here is where the major precious metals funds stand. The Best Gold ETF for $1,000 Issuer Fund Ticker Net assets Expense ratio Avg daily volume State Street SPDR Gold MiniShares GLDM $28.5B 0.10% 3,237,047 BlackRock iShares Gold Trust IAU $59.4B 0.25% 4,304,350 State Street SPDR Gold Shares GLD $130.3B 0.40% 4,942,316 BlackRock iShares Silver Trust SLV $28.5B 0.50% 11,490,049 VanEck Gold Miners GDX $22.6B 0.51% 13,788,568 Expense ratios and net assets come from each issuer’s fund page, as of late July 2026, and the GLDM figures are as of June 2026, the most recent State Street publishes. Volume figures are average daily share counts from the ETF data provider Stock Analysis, pulled August 4, 2026 so the whole column measures the same window of time.1 One warning on that last column. Share counts are not like-for-like, since a GLD share carries several times the dollar value of a GLDM share. Read volume as a rough signal of how crowded the exchange is around a fund. SPDR Gold Shares and the Cheaper SPDR Gold MiniShares SPDR Gold Shares is the original and still the giant among gold ETFs. It launched back in November 2004 and carries a 0.40% gross expense ratio against roughly $130.3 billion in net assets.2 That size buys enormous liquidity, and the fund shows up on every list of the largest ETFs by assets. State Street also runs a second fund on the same bullion. SPDR Gold MiniShares (GLDM) started in June 2018 and charges 0.10%. Same issuer, same metal, one quarter of the fee. For buy-and-hold money, MiniShares is the SPDR gold product to own. So a fair question is; why would anyone pay four times as much? Size does something at the trading screen that a low fee never will. The larger fund carries a heavily traded listed options market, which lets a trader write covered calls against a gold position or buy protection without hunting for a counterparty. Big orders also fill closer to the quoted price at that kind of volume. Both State Street funds post a 30 day median bid/ask spread of 0.01%, so a typical retail trade sees the same friction either way. The advantage arrives when your order is large, your timing is short, or an options chain is part of the plan. iShares Gold Trust and Its Lower Expense Ratio iShares Gold Trust sits between the two SPDR gold ETFs. IAU has run since January 2005, holds about $59.4 billion in net assets, and charges a 0.25% sponsor’s fee.3 That’s a cheaper annual charge than the original by a wide margin. IAU deserves a look when your broker offers it commission-free and leaves GLDM off the list. Check the fund page at iShares, then the page for GLDM. Comparing Expense Ratios Expense ratios look harmless on $1,000. A 0.40% fee is a cost of about $4 a year. GLDM’s 0.10% runs about $1.4 Three dollars. Who cares? You should, and here’s why. That cost happens whether the gold price rises or falls, and it repeats every year you hold the fund. On a flat $1,000 balance, the cheaper fee structure keeps roughly $30 in your account across a decade. Scale the position to $10,000 and it’s $300. The management cost is the one number you control

Markets This Week: 5 Things to Watch (August 3-7, 2026)

There will be a lot of new economic news released in the markets this week, including manufacturing, services, and employment data. Key companies in the tech and hospitality industry will also release earnings results this week. 1. Manufacturing Data The US economy’s growth came in much slower than expected in Q2 2026, partially because of weaker export growth.1 One import metric to keep an eye on is manufacturing data, which may provide more context to the growth outlook for H2 2026. One of the upcoming data releases in the markets this week is the US Manufacturing PMI, which will be released on August 3rd at 9:45 a.m ET. Tensions between Iran and the United States, which have caused an uptick in inflation, have resulted in slower growth in the United States’ traditional manufacturing sectors. This trend is worth monitoring amid the heavy AI-driven narratives in the market and economy. AI has been behind a large portion of the economy’s growth and stock market returns. Around two-thirds of GDP growth from the first half of 2025 came from new AI investments.2 » Start investing today: Explore top brokerage accounts with our detailed review 2. Services Sector Update One of the main factors that supported Q2 2026 included robust consumer spending and relatively healthy activity in the services sector.3 There will be new monthly US Services PMI data released on Wednesday, August 5th at 9:45 a.m ET. This data is well worth monitoring, as tensions between the US and Iran have begun to put pressure on the US services sector in recent months.4 Some key services-based ETFs to keep an eye on include the Vanguard Consumer Discretionary ETF (VCR) and the Vanguard Communications Services ETF (VOX). 3. Additional Labor Market Updates There will also be a lot of new labor market data released this week. Labor markets have been facing a lot of tension in recent months, as job growth has declined and the unemployment rate has remained at around 4.2%. Below are some of the top news releases to monitor this week: ADP National Employment Summary Report: Wednesday, August 5th at 8:15 a.m ET Employment/Unemployment Report: Friday, August 7th at 8:30 a.m ET Average Hourly Earnings: Friday, August 7th at 8:30 a.m ET New AI investments from companies have driven new layoffs in industries like technology. There were 245,000 layoffs in this industry last year, and total layoffs in the tech industry have already reached 170,000 this year.5 Labor market data has been gradually weakening in recent months. Nonfarm payroll growth has already been declining in recent months.6 Nonfarm Payrolls Weaker labor data could be one factor that pushes the Federal Reserve to delay rate hikes, although inflationary pressure has also put pressure on the Fed to hike rates in the near term.7 » Looking for a guaranteed income? Explore today’s top CD rates 4. Global Macro News There will also be a lot of global macro news released in the markets this week, following the US economy’s underperformance in Q2 2026. Below are some major developments to monitor in China, Japan, and the European Union. Country/Region Economic Releases China Private Manufacturing PMI on August 3rd Private Sector Services PMI on August 5th Japan Services Sector Health Report on August 3rd BOJ meeting minutes from July policy meeting on August 5th Europe Eurozone Manufacturing PMI on August 3rd This data is all worth monitoring, as any setbacks could result in growth downgrades for 2026. The World Bank is currently forecasting 2.5% global growth due to geopolitical tensions, rising commodity prices, and other economic headwinds.8 5. Important Earnings Results There have been several major exciting earnings announcements in recent weeks for major tech giants, resulting in a massive divergence in performance among US tech companies. There will also be several important earnings releases in the markets this week. Some leading names in the tech and hospitality industry will report earnings this week. Company Q2 Earnings Announcement Palantir Technologies August 3rd at market close Marriot International August 3rd at 7:00 a.m ET Advanced Micro Devices August 4th at market close Space X August 4th at 3:30 p.m ET Expedia Group August 5th at 4:30 p.m ET Airbnb August 6th at market close Key ETFs to follow this week include the Invesco Leisure and Entertainment ETF (PEJ), the VanEck Semiconductor ETF (SMH), and the Global X Defense Tech ETF (SHLD). » Stay ahead of your finances: Join our free newsletters today

The 5 Best Bond ETFs to Buy in 2026

What Fixed Income Really Buys You Ask anyone who held only stocks through the last crash what they wish they’d owned alongside them. Fixed income, every time. Bonds and stocks rarely fall together. Bonds pay you to lend. You hand over principal, the borrower sends interest payments on schedule, and bond ETFs pass that income to your account. Predictable payments separate fixed income securities from stocks. Fixed income investments are why investing through a drawdown stays survivable, and bond ETFs are how most people own bonds. The bond market has grown fast. Back in May 2022, BlackRock projected that global bond ETF assets would triple to $5 trillion by 2030, from $1.7 trillion at the time, after five years in which bond ETFs grew 23.4% a year through December 2021 against 9.5% for open-end mutual funds.1 So bond ETFs can help twice over: smooth out the ride, and the bonds keep earning income while doing it. Before buying more ETFs, you might want to check how many ETFs you actually need. How Bond ETFs and Bond Mutual Funds Differ Bond ETFs and bond mutual funds both pool cash and buy bonds. The difference is how you trade those bonds. Exchange traded funds (ETFs) price all day on an exchange, so you watch the price move. Most bond funds built as mutual funds settle once, at the closing net asset value. Bond ETFs, though, settle on the exchange in seconds, and that liquidity is the edge exchange traded funds hold over mutual funds. Here’s how to invest in ETFs if you’re new. Turnover is where the tax difference shows up. Mutual funds can distribute capital gains when managers sell securities inside the fund, creating a tax bill for investors even if they never sold their shares. The ETF structure absorbs most of that, which is why ETFs beat mutual funds on tax efficiency in a taxable account. Holdings are reported daily too, so you know exactly what you own. The Low Cost Advantage of Index Bond ETFs Cost is where low cost index bond ETFs really come out ahead. Most charge between 0.03% and 0.06% a year, which is roughly what index investing in bonds costs once a computer does the picking. Morningstar’s 2026 fee study put the asset-weighted average expense ratio across US funds and ETFs at 0.32% for 2025, roughly ten times what a low cost index bond ETF charges, and expenses like that come out of your return every year, in every market.2 Active managers earn their fee by responding to market changes, and active bond ETFs can adapt to market dislocations in real time in a way an index tracker never will. Passive index ETFs hand you thousands of bonds for almost nothing. Core-plus bond ETFs sit between the two, holding an investment grade core plus a slice of high-yield and emerging market debt. Why Bond Funds and ETFs Have No Maturity Date Here’s the misconception worth clearing up: that a bond fund matures the way a single bond does. Individual bonds do carry a maturity date and real default risk, and unless there is a default, you get your principal back on that day. Unlike individual bonds however, bond ETFs keep rolling, since the fund sells underlying securities as those bonds approach maturity and buys new bonds. The maturity date never arrives, so the net asset value and the share price float with interest rates instead. » Looking for a guaranteed income? Explore today’s top CD rates How to Match the Best Bond ETFs to One Job So which job is open in your portfolio right now? Many investors scan a list of the best bond ETFs, buy the top name, and hold bonds for a job they never really had. Investing in fixed income works when every fund has an assignment, a purpose. Five jobs, five ETFs. You don’t need all five, but understanding each role helps you choose the right bond ETF for your portfolio. Read the summary prospectus first. It tells you the fund’s investment objectives, which bonds and securities it holds, its expenses, and its risk. Ticker Job Index tracked Holdings Expense ratio Yield (30-day SEC) Duration BND Core allocation Bloomberg U.S. Aggregate 11,476 0.03% 4.61% Intermediate SGOV Parked cash ICE 0-3 Month T-Bill 23 0.09% 3.57% 0.11 years VTEB Tax-free income S&P AMT-Free Muni 10,570 0.03% 3.56% Intermediate VGIT Drawdown ballast Bloomberg Treasury 3-10 Yr 105 0.03% 4.36% 3 to 10 years VTIP Inflation protection Bloomberg TIPS 0-5 Yr 25 0.03% 2.02% 0 to 5 years All yields shown are 30-day SEC yields. Vanguard yields as of July 23 and July 24, 2026. BND and VTIP holdings as of June 30, 2026, BND net assets as of June 30, 2026. SGOV yield as of July 24, 2026, with holdings, net assets, and duration as of July 27, 2026. Expense ratios as reported on each fund’s issuer profile, most recent prospectus dates December 2025 through April 2026. » Saving for the short-term? Start with the best places to park short term cash instead. BND: The Core of a Bond Portfolio Best for: a core U.S. bond allocation. BND is the default answer for the middle of a bond portfolio. The fund tracks the Bloomberg U.S. Aggregate Float Adjusted Index, so Treasury bonds, agency bonds, and investment grade corporate bonds arrive in one ticker. Net assets sat at $159.8 billion as of June 30, 2026, the largest fund in this lineup by a wide margin.3 Cost is what investors underestimate when investing in bonds. At a 0.03% expense ratio, a $10,000 position costs $3 a year. Just three dollars. On the other hand, an actively managed bond fund charging 0.45% takes $45 annually whether the bond market rises or falls, and those expenses compound against your other investments. Pair these bond ETFs with a stock index fund and you have the simplest 3-fund portfolio. » Start investing today: Explore top brokerage accounts with our detailed review What 11,476 Holdings Actually Get You

Markets This Week: 5 Things to Watch (July 27-31, 2026)

The Federal Reserve is poised to make its long-awaited decision about interest rates this week. Beyond the Fed decision, markets will also be watching several major catalysts this week, including GDP estimates, inflation, and consumer sentiment data. 1. US Rates Decision The Federal Reserve will meet this week and announce its interest rates decision on Wednesday at 2 p.m. A CME watch tool recently raised the odds of a rate hike to 82%, up from 53% a week ago.1 This decision may have a strong spillover impact on the market, especially since investors have already been selling tech stocks due to new inflationary fears.2 Other Central Banks, such as the ECB and DOJ, have hiked rates recently in response to new inflationary pressures. Moreover, the new wave of energy inflation in the past few weeks is another new indicator that could strongly impact Central Bank policy in the coming months. » Start investing today: Explore top brokerage accounts with our detailed review 2. GDP Estimates The BEA will release new Q2 2026 growth estimates for the US economy on Thursday at 8:30 a.m. The Federal Reserve Bank of New York currently projects that Q2 2026 GDP growth will reach 2.8%.3 This will be a crucial update for markets this week, as geopolitical tensions have sparked concerns over a slowdown in global growth. GDP growth was 2.1% last quarter, and JP Morgan is currently projecting 1.5-2% growth in 2026.4 3. New Inflation Updates There will also be new inflation data released this week, which will provide more context to the recent oil price surge. The PCE Index, which measures price increases excluding food and energy, will be released on Thursday at 8:30 a.m. The recent increase in inflation in 2026 was largely driven by energy prices.5   However, the PCE Index has also been rising recently, by 4.1% in May, compared to 3.8% in the previous month.6 This uptick is slightly concerning, as it displays how items apart from energy and food are increasing in price. » Looking for a guaranteed income? Explore today’s top CD rates 4. Consumer Sentiment Updates Consumer staples stocks have rallied circa 8% YTD, but this performance was largely driven by the surge in these stocks during the first two months of this year.7 Recent geopolitical and inflationary pressures have made the current health of the US consumer market hazy. Consumer confidence data will be released on Tuesday at 8:00 a.m ET, while personal income and consumer spending data will be released on Thursday at 10:30 a.m ET. Overall, consumer sentiment has been weakening over the past three years, further exacerbated by the rebound in inflation in 2026. Consumer stocks are one key area to monitor in markets this week, as there will also be new inflation and interest rate data paired with this new consumer data. 5. Tech Stocks Earnings News The recent surge in oil prices and concerns over subsequent rate hikes have been putting pressure on tech stocks. The technology sector is likely one of the top sectors to monitor in markets this week. Major tech giants will be releasing earnings next week, around the same time as the Federal Reserve makes its rate hike decision. Company Earnings Announcement Microsoft Wednesday July 29th at 2:30 p.m ET Meta Platforms Wednesday July 29th at market close Amazon Thursday July 30th at market close Apple Thursday July 30th at market close Tech stocks pulled back by around 3% last week and may be some of the main market movers this week. » Stay ahead of your finances: Join our free newsletters today

How to Build an ETF Portfolio That Can Last a Lifetime

How to Build an ETF Portfolio That Lasts a Lifetime Imagine there is an account you open in your twenties and still trust into your sixties. That’s the goal. A portfolio you can hold on to through booms, crashes, job changes, and every headline in between, without tearing it apart each year or losing sleep over performance. Exchange traded funds (ETFs) make that staying power possible. One fund can hold hundreds or even thousands of companies, trades like a stock, and costs almost nothing to own. You get broad exposure, low fees, and a structure built for decades of growth. A good ETF portfolio holds the right mix of funds, and the right mix beats a crowded lineup every time. Plenty of experienced investors overbuild, stacking funds on top of funds. Many investors would do better with less. New to this? Our guide on how to invest in ETFs covers the mechanics. This one covers the plan. Seven steps: set your goal, choose your allocation, pick low cost core funds, add diversification where it helps, cut overlap, match your risk, and rebalance. » Start investing today: Explore top brokerage accounts with our detailed review Start With Your Financial Goals Before you buy a single fund, answer one question. What is this money actually for? Your financial goals decide everything that follows. For example, money you’ll need within a year or two has no business in the stock market. But cash you won’t touch for thirty years can ride out almost anything. For retirement, a house down the road, income later in life, or long-term growth, each goal points to a different setup. Your investment objectives set the time horizon, and the time horizon sets how much risk you can carry. Match the funds to those investment objectives. A lot of poor investment decisions start with a mismatch between goal and account. Good investment decisions begin with a clear goal. Someone saving for a wedding shouldn’t run the same investment strategy as someone forty years out. The best investing strategy is the one you stick with, and serves your end goal.. If your objective is retirement, the mix will evolve as you age. Our breakdown of the right allocation at every age shows how that glide works. Once your investment goals are clear, the rest gets much easier. » Ready to invest for retirement? Check out our review on the top IRA accounts Choose Your Asset Allocation Your asset allocation is the split between stocks, bonds, and other asset classes. It determines how your portfolio behaves more than any single fund you pick. Nail the asset allocation and the rest is just details. Stocks give you growth, and with it, volatility. Bonds on the other hand, bring stability and income. A strategy for a young investor might be to hold 90% stocks and 10% bonds. For someone near retirement, that might flip closer to 50/50. Your investment portfolio should reflect the risk you can live with, not the one that looks good on paper. Spreading across different asset classes smooths the ride. Balancing Stocks, Bonds, and Other Asset Classes Most portfolios are built from a few asset classes: US stocks, international stocks, and bonds. Some also add small slices of other asset classes like real estate or commodities. The bond side is where people get lazy. A single fund like Vanguard’s Total Bond Market ETF (BND) holds thousands of US bonds in one ticker, and its expense ratio is just 0.03%, against 0.53% for the average similar fund.1 That’s your stability sleeve, sorted. Whatever your stock allocation, a clean starting point like a simple three-fund portfolio is hard to beat. Pick Low-Cost Core ETFs With your asset allocation set, you fill it with low cost core funds. A broad index ETF is the workhorse here. Rather than pay professional managers to pick winners, you can buy the whole market for a rock-bottom fee. An index ETF just mirrors its market. Cost is the one variable you have 100% control over. Vanguard’s Total Stock Market ETF (VTI) holds the entire US market and carries an expense ratio of 0.03%, compared to 0.72% for the average similar fund.2 One holding and you own US stocks top to bottom. That fee difference looks tiny, but over a lifetime, it isn’t. How the Expense Ratio Shapes Your Net Return The expense ratio is the yearly fee a fund charges, taken straight from your return. On a $100,000 balance, a 0.03% expense ratio costs $30 a year. A 0.72% fund costs $720 for the same holding. Run that across thirty years of compounding and you’re leaving tens of thousands on the table. Index funds keep costs low, and that’s the advantage. They usually undercut actively managed mutual funds on price. Actively managed ETFs and traditional mutual funds carry higher management fees, and those fees don’t buy better results for most investors. ETFs also win on tax efficiency over comparable mutual funds, handy in a taxable account, especially for high turnover funds. Want the full comparison? See how ETFs compare to mutual funds. How to Find ETFs Worth Holding for Life To find ETFs you can hold forever, keep the checklist short. You want broad exposure, a low expense ratio, healthy volume, and an index you understand. ETFs trade all day on major stock exchanges, and a fund’s price tracks the net asset value of its holdings. Good ETFs track their index closely and stay cheap. A total-market fund built on US large cap stocks and the rest of the market covers most of it. Want the numbers in one place? Grab our free index fund cheat sheet and run any fund past it before you buy. Past performance never guarantees future results, so you may want to focus on low cost ETFs and let time do the work. Building a Diversified ETF Portfolio A diversified ETF portfolio spreads your money so no single company, sector, or country can sink you. Diversification reduces the risk of major

Markets This Week: 5 Things to Watch (July 20-24, 2026)

There are plenty of exciting developments ahead in the markets this week, including new labor market, housing, and manufacturing data. Geopolitical tensions also peaked over the weekend, and investors should keep an eye on how these developments will impact markets this week. 1. Labor Market Sentiment One of the main data points that may impact future rate hikes is an update on the health of the US labor market. Last month’s Jobs report showed weaker employment growth, as the US economy only added 57,000 new jobs.1 There will likely be additional layoff data from major tech companies this week. So far, major giants like Xbox, Robinhood, and Microsoft have already conducted major layoffs, and Google employees recently signed a petition calling for layoff protection.2 Investors should also be on the lookout for new weekly jobless claims data, which will be released on Thursday. Moreover, major tech companies are also reporting earnings data next week and may provide updates about layoffs. » Start investing today: Explore top brokerage accounts with our detailed review 2. Manufacturing PMI Data Investors should also keep an eye on the new S&P Global Flash US Manufacturing PMI data, which will be released on Friday. Manufacturing PMI in the United States recently dropped slightly to 53.9, below the initial projections of 55.7.3 Manufacturing PMI Many global markets now face the risk of slower manufacturing activity, as recent geopolitical tensions have increased input costs.4 This data, coupled with movements in energy prices, should provide more insight about growth data for Q2 2026 and subsequent quarters. 3. New Home Sales Another major sector to monitor in the markets this week is real estate, which has been experiencing a moderate cooldown. Pending home sales recently fell by 5.4% MoM and 0.3% YoY in June, according to data from the National Association of Realtors.5 The US Census Bureau and Department of Housing and Urban Development will release June 2026 new home sales data on Friday. Sales have been cooling down in recent months, and new June data could impact sentiment for real estate equities.6 The Vanguard Real Estate Index Fund ETF (VNQ) has rallied 13% YTD amid concerns over rate hikes and other broader economic concerns. » Looking for a guaranteed income? Explore today’s top CD rates 4. ECB Rate Decision Another important event in international markets this week is the upcoming ECB interest rate decision. The ECB recently decided to hike rates by 25 basis points in June to combat the new wave of inflation that hit markets.7 Euro Area Interest Rate Inflation cooled down in June, but global central banks will have to continue monitoring geopolitical developments and new inflation data in subsequent months. The ECB will make its decision about rates during its meeting this Thursday. 5. Geopolitical Tensions Geopolitical tensions took a nasty turn at the end of last week. Elevated tensions between Iran and the United States could be one of the main market movers this week. Both Iran and Kuwait recently reported attacks on their infrastructure on Friday, severely harming the progress of previous ceasefire discourse.8 Oil prices rose by more than 10% during the week due to these tensions, reaching a new monthly high.9 The Vanguard Energy ETF (VDE) rallied by 2.4% last week amid the S&P 500 decline. Oil equities may be an interesting sector to observe this week, as additional geopolitical flare-ups could continue to impact energy equities. » Stay ahead of your finances: Join our free newsletters today

ETF Overlap Explained: Is It Hurting Your Portfolio?

What ETF Overlap Really Means More funds should mean more diversification, right? That’s the instinct, anyway. You buy a handful of equity ETFs, spread your investment around, and figure you’ve covered your bases. Then you look under the hood only to find out you are not as diversified as you thought. Exchange traded funds (ETFs) are a basket of different investments, and the popular ETFs hold the same underlying securities at the top of the list. So when you hold multiple ETFs, you often buy the same companies again and again. One fund calls itself large-cap. Another calls itself growth. Pull their holdings, and the top names look strangely familiar, the same giants people refer to on any large-cap list. Even a single security like Nvidia can lead the number-one spot in several funds at once, and that one security drives more of your return than you’d think. That’s the point worth checking before you buy the next fund. And if you’re deciding between ETFs and mutual funds, the same trap applies to both. After all, one ETF can provide access to hundreds of stocks, which is great, right up until the next fund you buy holds the very same ones. Why It Happens in Mutual Funds and ETFs Alike This isn’t an ETF thing, by the way. Mutual funds do exactly the same thing. Most index funds, whether they trade as a mutual fund or an ETF, weight their holdings by company size, so the biggest companies are always going to be the ones at the top of just about every broad fund. And that means, if you buy an S&P 500 index mutual fund and an S&P 500 ETF, you’re basically buying the same thing, just with different labels. In a real sense, only the ticker changes. » Start investing today: Explore top brokerage accounts with our detailed review VOO vs VTI: Two Funds, One Portfolio Take the two most popular index ETFs around and compare VOO vs VTI directly. On paper they look like different funds with different jobs. VOO tracks the S&P 500, the 500 largest U.S. companies. VTI tracks the total U.S. market and holds 3,448 stocks, nearly seven times as many. Two mandates on paper. You’d expect two portfolios. But the reality isn’t quite so exciting. If you compare VOO and VTI at the top holdings, you’ll find they’re basically twins. And that’s because the biggest companies dominate both. Those giant names have so much weight that all the extra small caps in VTI barely even show up on the radar. The number backs it up. According to ETF Research Center, the two have an 88% overlap by total weight.1 Comparing the Top Holdings of Each Fund Here’s where it gets interesting. In VOO, the ten largest holdings make up roughly 36% of the fund, led by Nvidia at 7.89%.2 Apple sits right behind at 7.05%, then Microsoft, Amazon, and Alphabet. For example, VTI holds 3,448 stocks, yet its top ten holdings mirror VOO’s and have roughly 32% of the fund concentrated in the top ten.3 VOO vs VTI: Overlap Comparison Holdings data as of 05/31/2026. Expense ratio as of 04/28/2026. Returns/price as of 06/30/2026. Data point VOO VTI Tracks S&P 500 Index CRSP US Total Market Index Stocks held 503 3,448 Expense ratio 0.03% 0.03% Largest holding Nvidia Nvidia Largest holding weight (%) 7.89% 6.70% Top ten holdings weight (%) 36.41% 31.87% Past year return 22.34% 23.18% Past 10 year average return 15.47% 15.03% Overlap by total weight 88% 88% The stocks line up in the same order, with the weights only slightly lower in VTI due to increased holdings. The overlapping holdings at the top are what you’re really buying when you own both funds. Owning VTI on top of VOO doesn’t hand you thousands of fresh companies to spread your risk. It hands you a slightly longer tail of tiny positions, while the mega-caps you already held through VOO get another touch. For most investors chasing broad exposure, one fund tracks that market just fine. » Stay ahead of your finances: Join our free newsletters today How Overlapping Holdings Stack Up A fund holding one security, Nvidia, at 8% is fine. The trouble starts when you stack funds that all lean on the same names. Say you like growth, so you pair VOO with a growth fund and a tech fund. Now look at the overlapping holdings you own across those multiple ETFs. In VUG, the Vanguard growth ETF, Nvidia is 13.10% and Apple 12.32%, the same names that top VOO and VTI, only carrying more weight.4 VGT, the Vanguard information technology fund, goes further and puts about 42% of the fund in Nvidia, Apple, and Microsoft alone, with Nvidia at 16.78%.5 Hold multiple funds like these, and the same three companies keep leading every single one. If you want the fund-level detail, growth funds like VUG and QQQM break down cleanly, and our roundup of the best growth ETFs covers the field in a more diverse way. When Growth and Tech Funds Track the Same Giants Here’s the part that counts and you don’t want to miss. Give each of those four funds an equal 25% slice, then blend their Nvidia weights together. Nvidia’s weight alone lands at about 11% of your whole portfolio. With the second holding, apple included, it works out to be another 10% roughly. Two companies, a fifth of everything, from a portfolio you built to be diversified. No single security should run your whole portfolio like that. That’s really high overlap, and most investors don’t realize it until they add up the company weight themselves. With QQQ, the overlap barely changes, since QQQ tracks the Nasdaq-100 and tends to focus on the same mega-cap technology names. When one security tops four funds, its swings become yours. Certain stocks simply dominate every technology-heavy fund, and the same handful leads across sectors. Hold multiple ETFs that all focus on tech, and the diversification you expected turns into

Markets This Week: 5 Things to Watch (July 13-17, 2026)

Markets this week will be filled with exciting new developments, including updates on inflation, rate hike expectations, and consumer health in the economy. Geopolitical developments also took a negative turn at the end of last week, which could spill over to equity markets this week. 1. Ceasefire Issues Tensions in the Middle East will likely be front and center in the markets this week. Trump recently announced that the ceasefire deal with Iran was over, although the United States and Iran have continued to maintain a dialogue.1 Oil stocks rallied slightly last week and should be worth keeping an eye on as geopolitical developments continue in the markets this week. Chemical stocks have also benefited from supply-side tensions. Morningstar recently noted that leading chemical stocks rallied by over 20% YTD by the middle of April due to the surge in chemical prices.2 ETFs like the Vanguard Energy Index Fund ETF (VDE) and the Fidelity Select Chemicals Portfolio (FSCHX) could be worth monitoring closely this week. » Start investing today: Explore top brokerage accounts with our detailed review 2. Upcoming Inflation Data Investors should also keep an eye on new inflation data, which will be released on Tuesday, July 14. A new Federal Reserve report is calling for 3.7% inflation in June, the highest level experienced since September 2023.3 Inflation has recently peaked at a new high following tensions in the Middle East, and equity investors are cautiously monitoring whether this is a short-term shock or a long-term issue. While markets appear to have priced in inflation peaking, any ongoing geopolitical tensions and higher inflation readings would reintroduce stronger fears of a future rate hike this year. 3. Fed Reserve and Rate Hikes The Federal Reserve will present its semiannual monetary report to Congress on Tuesday, July 14, shortly after new CPI data is released. We are at a potentially crucial turning point in the market, as the Federal Reserve may need to consider rate hikes following its aggressive cuts in 2025.4 The Bank of Japan and the ECB have recently had to hike rates amid inflationary pressures, and the Federal Reserve has been facing increased pressure to follow suit.5 Once new inflation data is released, the Federal Reserve may provide more clarity about its future rate decisions. » Looking for a guaranteed income? Explore today’s top CD rates 4. Retail Sales Sentiment There will also be new consumer data released in the markets this week, including June retail sales data on Thursday, July 16, and consumer sentiment data on Friday, July 17. This data will be a strong complement to the newly released CPI data and could impact sentiment for retail and consumer stocks in the markets this week. Data from previous months was very strong, so any changes in readings in June could impact market sentiment.6 ETFs like the State Street SPDR S&P Retail ETF (XRT) currently trade at a price/earnings discount to the S&P 500 and have had solid performance in the past year. Themes like retail could have an eventful week following the combination of new inflation and retail sales data released this week. 5. Important Earnings Releases July will also be a very important month for the market because of new earnings releases in multiple sectors. One major area of the market to monitor is the financial sector, as leading US banks like Wells Fargo, JPMorgan Chase, and Bank of America will report earnings on Tuesday, July 14.7 The iShares US Financial Services ETF (IYG) has only risen by 1.5% amid broader economic and geopolitical concerns this year. Other notable earnings releases to monitor in markets this week include Netflix, UnitedHealth Group, and Abbott Laboratories. Investors should also keep a close eye on how tech and healthcare ETFs respond to upcoming earnings updates in the upcoming weeks. » Stay ahead of your finances: Join our free newsletters today

Best AI ETFs for 2026: How to Invest in Artificial Intelligence

You want a piece of the AI boom without betting everything on one chipmaker. The good news is, you can. An AI ETF holds a collection of companies tied to AI, and one share buys the whole group. You get six funds across the AI supply chain to choose from, plus some tips and tricks for comparing and choosing. These funds are geared towards long-term investors who want AI exposure but don’t want to pick single stocks. The thing is, if you get it wrong and pick the wrong fund, you’ll be paying a premium for companies you already own. The AI market has moved fast over the past few years, and the AI ETF space is getting crowded with new funds popping up all the time, from chips to AI tech in software. » Start investing today: Explore top brokerage accounts with our detailed review What Is an AI ETF? An AI ETF is an exchange-traded fund that owns shares in technology companies that are working on artificial intelligence. Think of it as getting pre-built AI stock exposure. Chipmakers, cloud providers, and generative AI developers, all in one neat package. Like other ETFs, it trades on the secondary market at a price that changes throughout the day, unlike mutual funds. New to the structure? Here is how ETFs work. Artificial intelligence ETFs give you the theme without researching the companies involved in AI development. AI ETF vs Technology ETF Here is where people slip up. A broad technology ETF and an AI ETF sound like twins. They hold the same tech stocks but aim at different things. A technology ETF targets companies across the whole tech sector. The iShares U.S. Technology ETF charges 0.38% and holds the broad U.S. tech sector, not an AI slice.1 An AI ETF narrows the lens to AI. Both own technology companies; the difference is focus. Want broad growth instead? Compare these with growth ETFs. How AI Stocks Compare to Funds Why not just buy the AI stocks directly? You can, but a fund can offer some upsides. For one thing, it can spread your risk across many AI stocks, which can cushion a single stumble. For most people building wealth over time, the fund means fewer decisions and fewer bad picks. AI ETFs and Mutual Funds You’ll also see AI mutual funds out there. The holdings can look similar, but the wrapper behaves differently. Exchange traded funds trade all day and usually cost less; mutual funds price once after the close and often charge higher fees. For a full head-to-head comparison, take a look at ETFs versus mutual funds. The bigger point though is taxes. When a fund manager trades in and out of positions often, those sales can trigger capital gains that get handed to shareholders, including people who never sold a single share. In a mutual fund, that leaves you owing tax on gains you didn’t cash out. The ETF structure sidesteps most of that, so those surprise capital gains distributions are far less likely to reach you. Chasing an actively managed or high-turnover AI fund? The ETF is the favored wrapper for it. In a taxable account, that edge adds up over time. The Types of AI Exposure Not every AI holding is a pure play. Some companies are directly exposed to demand for AI tech, like a model builder selling AI software. Others get only a little bit of exposure, a utility selling power to a data center will benefit some, even though AI isn’t its core business. A chipmaker, on the other hand, is right at the center of it, with a lot more direct exposure than that utility. When you scan an AI ETF, ask yourself what kind of exposure are you buying: pure play exposure or broader AI stock exposure? AI funds fall into a few different buckets. Some are all about the hardware: chips, memory, and the data centers that run the models. Others act like a next gen software ETF, holding the generative AI and application layer. A few even try to own the entire AI theme at once. Each bucket bets on capturing emerging growth opportunities inside AI technology as the buildout continues. 1. Semiconductors and AI Technology: SMH Chips are the foundation of AI technology, that’s why many investors start here. The VanEck Semiconductor ETF (SMH) holds 26 U.S.-listed chip names and charges 0.35%.2 Its top holdings are no surprise: Nvidia at 18.41% of the fund. The fund invests to correspond generally to a semiconductor index, tracking its price and yield performance, which sets the fund’s market price. Its 1-year return hit 150.62% as of 5/31/2026, an endpoint that flatters it, so do not bank on a repeat. See our best semiconductor ETFs. For further data on each ETF, scroll below. 2. Memory Chips: DRAM Memory is the next layer. AI models eat enormous amounts of it, and the Roundhill Memory ETF (DRAM) is pure play exposure to the memory makers that supply it.3 Its strategy is intensely concentrated, with Micron at 25.96%, and the fund’s active management gets to pick the names. The basket holds very few stocks, so expect significant volatility. Lean on a handful of names and one rough quarter from any single one can jolt the whole fund, which is the risk to keep in mind here. One catch: DRAM launched on April 2, 2026, so its record is thin. Its since-inception return of 161.51% is cumulative over roughly one quarter, not annualized, and there is no 1, 3, or 5-year data yet. With that said, the fund has currently broke the record to becoming the fastest-growing ETF to reach $20B in AUM. 3. Data Centers and Infrastructure: DTCR All that spending on AI has to live somewhere, that’s where data centers come in. The Global X Data Center and Digital Infrastructure ETF (DTCR) owns the REITs and infrastructure behind the AI technology buildout, led by Equinix at 12.30%, for 0.50% a year.4 Data centers take years to

Best ETFs for Monthly Income in a Taxable Account: SPYI & QQQI

SPYI and QQQI in a Taxable Brokerage Account Most of your retirement money probably sits in a 401(k) or IRA, and you can’t touch it without a penalty until 59½. So what do you do if you want a paycheck from your investments right now? That’s where a taxable account comes in handy. There’s no age restriction and no withdrawal penalty, so you can just pull income even in the same month you earn it. SPYI and QQQI are built for exactly that situation. Both are ETFs that throw off large distributions every month, and both can be traded in any standard brokerage account. Income focused investors can use these ETFs to generate extra income on top of a salary, while retirees can fold them into a portfolio that covers living expenses without having to sell any shares. As a yield strategy, both fit in nicely into a wider mix of investments without you having to time the market or rethink your investing plan. Here’s the appeal in plain terms. You hold the ETFs, the distributions go into your account, and you can decide whether to spend the cash or reinvest it. For someone who wants extra yield from the market today instead of decades from now, that flexibility is the whole point. But, there are some real trade-offs, and we’ll get to them. How They Pay High Monthly Income How do these ETFs deliver double-digit yields when the S&P 500 itself yields barely over 1%? The short answer is covered calls. Each fund keeps full exposure to the index it tracks, then sells covered calls against those holdings and collects option premiums in return. Picture renting out the upside on individual stocks you already own. Tenants cover the rent; option buyers cover the premium. NEOS runs a data driven options strategy, it is done by selling call options that respond to market conditions and volatility instead of writing the same call options every month. Those premiums then become the bulk of what you receive. That’s how these funds generate high monthly income that typical monthly dividend ETFs can’t match on yield alone. They deliver far more than ordinary stock dividends. So what do you give up? Selling covered calls caps your upside, which is the real risk for an investor who is growth-minded. When the index runs past the strike price, the fund keeps the premium but forfeits the gain above it. That’s basically the trade for the yield. JEPI and JEPQ made this options strategy popular, and SPYI and QQQI pushed covered calls toward even higher distributions, but more importantly, a more convenient tax structure. One tax detail is built in from the start. Because both ETFs write broad-based index options, those contracts qualify as Section 1256 contracts, which the IRS taxes as 60% long-term and 40% short-term regardless of how long the fund holds them, but that’s not even the key to their efficiency.1 Inside the NEOS S&P 500 High Income ETF (SPYI) SPYI, known as the NEOS S&P 500 High Income ETF, is the older of the two funds. It launched in August 2022 and holds around $10.1 billion today. If you are looking for S&P 500 stocks with a nice monthly check, this is the fund for that. The NEOS S&P 500 High Income ETF (SPYI) tracks the S&P 500 while writing index call options on top, so the fund holds the same 500 large-cap stocks as a conventional index fund. Its underlying exposure shows up in the top holdings, a big-tech roster: NVDA at 7.64%, AAPL at 6.77%, MSFT at 4.29%, AMZN at 3.64%, and GOOGL at 3.22% as of late June 2026. Now let’s look at income. SPYI comes with a 12.08% distribution rate, with a 12-month trailing distribution rate of 11.78%, paid monthly at a 0.68% expense ratio.2 At a share price near $52, that’s roughly $0.53 a share every month. Shares trade right at NAV, with the market price and net asset value at $52.17 and $52.16 in late June, which keeps liquidity tight and day-to-day performance nice and smooth. Performance has held up well. Since it was launched back in August 2022, the NEOS S&P 500 High Income ETF has returned about 15.33% annualized, with a one-year total return of 23.88% and a three-year mark of 17.12%. Income investors tend to hold ETFs like this in a portfolio for the cash flow, knowing past performance can’t guarantee future results and that the call-writing trades away some of that capital appreciation. » Start investing today: Explore top brokerage accounts with our detailed review Inside the NEOS Nasdaq 100 High Income ETF (QQQI) QQQI is the younger sibling and, somehow, it has already managed to become the bigger fund. The NEOS Nasdaq 100 High Income ETF launched in January 2024 and has pulled in roughly $12.6 billion in net assets, outgrowing SPYI to rank among the largest option-income funds around. Same playbook, heavier on tech. If SPYI is the steady one, then QQQI is the high-octane version. QQQI also runs the covered call strategy but this time on the Nasdaq 100 index instead of the S&P 500 index, so its underlying exposure leans harder toward technology and communication services. Top holdings as of late June 2026: NVDA at 7.86%, AAPL at 6.94%, MU at 5.27%, MSFT at 4.43%, and AMZN at 4.11%. That’s a heavier semiconductor weighting than Invesco QQQ holders might expect, and it’s the reason why QQQI carries higher volatility than its S&P 500 cousin. The income runs hotter too. QQQI posts a 14.11% distribution rate, with a 12-month trailing distribution rate of 13.56%, paid monthly at the same 0.68% expense ratio.3 The share price right now is at $55, with the market price and NAV both at $54.94 in late June, giving you deep liquidity at a clean entry point. Performance since the January 2024 inception date has been strong: about 22.16% annualized, with a one-year return of 30.99%. The NEOS Nasdaq 100 High Income ETF is too young for a

Markets This Week: 5 Things to Watch (June 29–July 3, 2026)

Some of the major trends to monitor in markets this week include new employment data in the United States and a potential roadblock to peace agreements between the United States and Iran. There will also be several economic data reports released this week that will focus on specific sectors in the US economy, as well as economic conditions in the European Union and Japan. 1. New Employment Data The U.S. BLS will release new labor market data this week, a move that will likely strongly impact equity market sentiment and subsequent discourse from the Federal Reserve. We have previously covered stronger employment data in previous months, while touching on the risks of ongoing layoffs in industries like technology. The previous Jobs Report in May showed strong growth in multiple sectors and raised concerns over the need for rate hikes.1 The current market consensus is that employment growth will be slightly slower in June relative to May.2 These upcoming reports, coupled with new inflation data, should guide the Fed’s assessment of whether it will need to hike interest rates in subsequent quarters. » Stay ahead of your finances: Join our free newsletters today 2. Ceasefire Developments Face New Challenges Recent ceasefire agreements between the United States have helped to support market sentiment in recent weeks. However, geopolitical tensions escalated over the weekend after the market closed, which could have a strong impact on market sentiment this week. Iranian drones recently attacked Bahrain after the United States carried out retaliatory strikes on Iran.3 This development is crucial to monitor, as recent peace developments have supported the market in recent weeks. Any negative developments could harm equity market sentiment in the short term. Energy equities are worth monitoring next week. The Vanguard Energy Index Fund ETF (VDE) has fallen by nearly 10% amid declining geopolitical tensions. However, energy has been a strong-performing sector this year, and is worth monitoring in the short term. » Start investing today: Explore top brokerage accounts with our detailed review 3. Tech Stocks Tech stocks were one of the worst-performing sectors last week. Investors should keep a close eye on tech stocks, particularly semiconductor stocks, as this sector may be very volatile this week. Exchange-traded funds that track the S&P 500 are heavily exposed to tech stocks. The top 10 S&P 500 constituents are all tech and AI companies and account for 37% of the index.4 One key event to watch in markets this week is the Federal Reserve’s additional comments on Wednesday, which could impact technology stocks. These comments will follow the release of labor market data and could provide more insight into the Federal Reserve’s stance on future rate hikes. Tech stocks could be worth monitoring, following their strong sell-off last week, especially since there may be new geopolitical tensions in markets this week. 4. US and International Growth Data One of the main concerns in the market has been a potential slowdown in global growth following tensions in the Strait of Hormuz. Conditions in the United States look a bit more favorable, following recent revisions to Q1 2026 GDP growth data.5 There will be many important pieces of economic growth data released in the markets this week. In the United States, there will be new data released about construction spending, manufacturing PMI, consumer confidence, and other labor market data. The BOJ will also release new inflation and growth data next week, providing more context on the impact of geopolitical tensions. Japan’s quarterly Tankan Business Survey will provide more insight into Japan’s manufacturing activity and economic health. Japan has entered a period of slower growth, with current projections calling for 0.5% growth in FY 2026.6 Recent inflationary pressure has also pushed the BOJ to hike rates to record levels in 2026. The European Union will release new CPI data this week, which should provide more data about the impact of conflicts in the Middle East. Last month’s release showed 3.2% inflation rate in the Euro area, driven by a circa 10% increase in energy prices and lower moves in other categories.7 5. Real Estate and Data Center REITs Real estate stocks performed exceptionally well last week amid the broader sell-off in the S&P 500 and tech stocks. This sector is worth monitoring this week, as there will be new data on construction activity and home prices this week. Another particularly intriguing area to monitor is data center spending, which has risen to record highs in 2026.8 Data center REITs like Digital Realty Trust (DLR) and Equinix ( EQIX) have trounced the S&P 500 this year. Companies like these are worth following as we potentially head into a volatile turn in markets this week.

Are Fidelity ZERO Index Funds Worth It? (The Catch)

What Are Fidelity Zero Funds? What does a 0% expense ratio actually cost you? Nothing, and that’s the whole point. Most index fund investments lose a portion of their gains to fees every year, usually a few hundredths of a percent. The Fidelity Zero lineup drops that to nothing. The four funds (FNILX, FZIPX, FZROX, and FZILX) carry a 0% expense ratio with no minimum investment, and they’re available to retail investors only through a Fidelity account.1 So what do you actually keep? Every dollar these investments earn, minus taxes, will stay in your account and keep compounding. We’ve broken down the rest of these low cost investments in our guide to the best Fidelity index funds to own for life, but the Zero funds are in a tier of their own. A price of zero always has a story behind it though, and these Fidelity funds are no exception. Meet the Four Fidelity Funds Four funds, four slices of the market. Each one tracks a different proprietary Fidelity index, and each holds its own basket of securities. Here’s what you’ll find inside. This is the lineup at a glance, sorted biggest to smallest by assets under management: Fund What it tracks (and resembles) Net assets 5-Yr average annual return Holdings FZROX (ZERO Total Market) The entire U.S. stock market: large, mid, and small cap. Acts like VTSAX or FSKAX. ~$38.6B (largest) 13.12% 2,668 FNILX (ZERO Large Cap) The biggest U.S. companies. A stand-in for the S&P 500. ~$18.6B 13.92% 506 FZILX (ZERO International) Developed and emerging markets outside the U.S. ~$11.6B 9.28% 2,239 FZIPX (ZERO Extended Market) U.S. mid- and small-caps, the market minus the ~500 largest names. ~$2.5B (smallest) 7.68% 2,086 Every fund here charges a 0.00% expense ratio with no minimum. Net assets, holdings counts, and 1-year average annual returns are as of May 31, 2026, per each fund’s Fidelity page. FZROX: The Total Market Index Fund FZROX is the total market index fund of the group. It tracks Fidelity’s proprietary U.S. total-market benchmark and holds roughly 2,700 stocks, thousands of underlying securities across large, mid, and small caps.2 Picture the entire U.S. stock market squeezed into a single ticker, the same job a fund like VTSAX or FSKAX does. It’s also the largest of the four ZERO funds by a wide margin, with about $38.6 billion in net assets as of May 31, 2026, a subtle signal indicating that when investors buy just one, this is usually the one they pick.  As of May 2026, the top holdings are a roll call of American business: NVIDIA near 7% of assets, Apple around 6.2%, then Microsoft, Amazon, and Alphabet. One share buys a sliver of nearly the entire U.S. equity market. For plenty of investors, this one total market index fund is the whole stock sleeve of their portfolio. Its total assets keep climbing as money flows in. The fund pays dividends once a year, and the investments inside it change only when the index does. FNILX: The Zero Large Cap Index Fund FNILX is the large cap index fund, the closest thing here to an S&P 500 substitute. It tracks the Fidelity U.S. Large Cap Index, a proprietary benchmark of the biggest U.S. companies, much like the S&P 500 without licensing that name. On size, it is second only to FZROX, holding roughly $18.6 billion in assets, the most popular ZERO fund after the total-market pick.  This large cap index fund holds the same mega-cap securities that dominate FZROX, minus the mid and small caps. Want broad blue-chip exposure at a true zero cost? The Zero Large Cap Index Fund (FNILX) delivers exactly that. For a side-by-side with the usual names, see our roundup of the best S&P 500 index funds. Plenty of investors park their core equity investments in this large cap index fund and never look back. FZILX: The International Index Fund FZILX is the international index fund of the lineup, holding securities from developed and emerging markets outside the US. Treat it as a one-ticker way to own the rest of the world’s stock market, from Europe and Japan through to emerging names across Asia and Latin America. By assets it’s the third-largest of the four at about $11.6 billion, the biggest ZERO fund that invests beyond U.S. borders.  Add it to the two domestic funds and you’ve got global coverage for a grand total of zero in fund costs. International returns have trailed U.S. stocks for years, but spreading your assets worldwide cuts single-country risk. Want the full case for owning foreign equities? Here’s our take on the best international funds for global exposure. This international index fund is the simplest way to get that exposure inside Fidelity. FZIPX: The Extended Market Index Fund FZIPX is the extended market index fund, covering the part FNILX skips: the mid- and small-cap companies outside the largest names. Pair it with FNILX and you rebuild something close to FZROX’s total-market exposure across two funds. The extended market index fund tracks the Fidelity U.S. Extended Investable Market Index, the smaller and faster-moving slice of the market. That’s where tomorrow’s large caps hide today, and where these investments add a little growth. It’s also the smallest of the four by assets, around $2.5 billion, which fits its job: most investors bolt FZIPX on for completeness rather than build a portfolio around it. How a Zero Expense Ratio Index Fund Works A zero expense ratio index fund sounds like a typo. How does any firm run one for free? Fidelity isn’t doing charity here. It’s running a loss leader, plain and simple. Here’s the mechanism. A traditional fund passes its operating expenses to you through an expense ratio: the management fees, the record-keeping expenses, the licensing. Fidelity eats those expenses on the Zero funds instead. The net expense ratio ends up at 0.00% because Fidelity built its own proprietary indexes rather than licensing the S&P or CRSP benchmarks, which erases the biggest cost and slashes what you’d normally

Markets This Week: 5 Things to Watch (June 22-26, 2026)

Some of the main events in markets this week will be ongoing dialogues between the United States and Iran, as well as new economic data releases following the Federal Reserve’s decision to hold rates steady. This week will be very eventful, as new data will be released that impacts sectors such as technology, real estate, consumer staples, and manufacturing. 1. AI Sentiment Improvements AI-themed stocks could be poised for an additional rally, especially since the Federal Reserve decided not to rates during its recent meeting. The Roundhill Memory ETF (DRAM) has rallied strongly, especially following the short-term political de-escalations. This ETF rose by nearly 10% last Friday, and may continue to have strong momentum and interest from investors this week. This ETF has been one of the fastest-growing ETFs in the market, recently surpassing the $10 billion mark. According to a recent article from Forbes, artificial intelligence stocks will account for around half of the S&P 500’s earnings growth during the year.1 Investors should keep a close watch on stocks with AI exposure, as this rally contains great volatility and no one knows what the upcoming future holds. » Stay ahead of your finances: Join our free newsletters today 2. Energy Stocks and Inflation Sentiment Oil prices have been extremely volatile during recent trading sessions. While potential peace talks have caused crude oil to drop below $80/barrel, oil prices have begun to rebound slightly as Israel’s recent strikes on Lebanon have raised questions over the success of new peace negotiations.2 The Vanguard Energy ETF (VDE) fell by 3% last week, but may be poised to rebound this week if oil prices recover.3   Investors should keep a close eye on energy markets this week, as these stocks may be poised to rebound amid any geopolitical shocks. 3. New Growth Data: Personal Income and Manufacturing Data Tensions in the Middle East have also sparked concerns over potential rate hikes and slower growth in global economies in 2026. Real GDP growth was 1.6% last quarter, but there are many vulnerable areas, such as consumer spending and manufacturing growth, that could cause weaker growth in Q2 2026.4 The BEA will release new information this week, including industry and state data from the quarter, as well as personal income and outlays data for May. Moreover, the upcoming S&P Global Flash Manufacturing PMI data should provide more insight about US manufacturing activity. This data should shed more light on the US economy’s performance during H1 2026 and sentiment for the broader equity markets this week. 4. Consumer Confidence and Real Estate Data US consumers have faced a rocky 2026 since geopolitical tensions began in late February. The combination of a new wave of inflation and potential rate hikes has created more cautious spending habits and delays in real estate transactions. While consumers have experienced temporary relief from the decline in gasoline prices, potential geopolitical shocks could reintroduce inflationary concerns.5 There may be some unique buying opportunities in markets this week for consumer staples or consumer discretionary stocks. ETFs like the Vanguard Consumer Staples Index ETF (VDC) or the Vanguard Consumer Discretionary Index ETF (VCR) may sell off this week on the back of any negative economic news. The US Census Bureau will also release data about new housing sales for May. April data was weak, and any further concerning slump in sales could cause real estate equities to sell off this week.6 5. Gold Amid Peace Negotiations Gold mining equities will likely have an eventful week following their strong decline in the previous week. One potential catalyst to monitor includes any derailing of peace negotiations between the United States and Iran. Iran recently accused the United States of violating its ceasefire agreement, a move that will likely shake markets this week.7 Any additional tensions could cause broader sell-offs in the market, including gold mining stocks. However, gold still retains its appeal in the current economic and geopolitical environment. Investors should keep an eye on any potential derailment of peace negotiations, as well as additional Central Bank buying activity, as this could add to gold’s appeal in the long term. » Start investing today: Explore top brokerage accounts with our detailed review

This AI ETF Hit $10 Billion Faster Than Any ETF Ever (DRAM)

What Is the DRAM ETF? A fund that launched in April 2026 has already pulled in more money, faster, than any ETF in history. That fund is the DRAM ETF, and its story is centered around the chips that make AI run. So what is it? The DRAM ETF is the Roundhill Memory ETF, the first U.S.-listed ETF offering targeted exposure to global memory companies at the center of AI infrastructure demand.1 Roundhill built it as a pure play on the chips that store and move data. Most funds spread your investments across a broad market, this one zeroes in on a single corner of the chip industry. DRAM is an actively managed fund with quarterly rebalancing, and funds like it generally seek exposure to firms that earn most of their revenue from memory products. It currently holds 9 companies, so every name carries weight. For anyone investing in the AI space, the speed here is the story. Investors who watched the largest ETFs by AUM build up over decades do a double take. DRAM charges a 0.65% gross expense ratio and has just past $20 billion in total assets since launch.2 Its performance since the debut has been nothing short of remarkable. These are aggressive investments, poured in by the billion, and you’ll want to balance these holdings against your other investments. Inside the Roundhill Memory ETF The structure of the Roundhill Memory ETF is where it gets interesting. Under normal circumstances, the fund will invest primarily in equity securities of memory companies, or in swap agreements and forward contracts that provide exposure to those same firms. Filings say it puts at least 80% of net assets, plus borrowings for investment purposes, into securities of memory companies or instruments tied to them.3 The issuer counts a firm as a memory company when at least half its revenues or profits come from memory products. Here’s the catch. Many big makers trade overseas, so buying their common stocks directly is hard for a U.S. brokerage. To get around that, the issuer uses derivative instruments, mainly total return swaps, which are contracts with a bank that track a stock’s return rather than holding the share. Each weight is calculated by combining the direct stock with any swap, and the underlying securities can be tricky to value abroad. That setup keeps the fund inside the rules that let it qualify as a regulated investment company for tax purposes. Beyond stocks, the fund can hold preferred securities and a little debt securities, which sit between stocks and bonds. A government money market position, around 15% of assets, holds cash and short Treasuries as collateral behind the swaps. Its operating expenses run 0.65% a year, and those expenses come straight out of returns. The distribution arrives once annually, and that distribution is tiny because the 30-day SEC yield stays low. These are growth investments, not income payers, so the yield barely registers. The investment objectives center around memory. Active management means quarterly rebalancing, so the lineup is subject to change. You can pull the summary prospectus and other information from the fund’s website, an actively managed ETF at its core. Why Memory Powers AI Why has so much money rushed into one fund? The answer is found inside every AI data center. Large models chew through enormous amounts of data, and that data has to move fast from storage to the processor and back. The memory chips that shuttle it have become the choke point of the buildout. Roundhill’s pitch, paraphrased from its launch materials, is that investors had underrated this slice of AI infrastructure and that owning it is the opportunity. Model training is only part of the demand. Cloud platforms and the broader storage stack run on the same memory, which keeps AI hardware money flowing toward the category. How High Bandwidth Memory Feeds AI Chips High bandwidth memory, or HBM, is a stacked, ultra-fast chip that sits next to an AI processor and feeds it data fast enough to keep it working. Without enough HBM, even the strongest chip stalls. That’s the bottleneck. Demand from the AI sector has outrun what memory companies can produce, and their stocks have run hot. A limited number of manufacturers can build HBM at scale, because the technology takes years of research and heavy capital. Want a good look at the wider chip space? Our roundup of semiconductor ETFs covers it. Where DRAM and NAND Fit DRAM, short for dynamic random-access memory, is the working memory a computer uses moment to moment. NAND flash is storage, where data sits when idle. The DRAM ETF covers both, plus solid-state drives. Micron Technology is one of the few U.S. firms here, and investing in it bets that memory companies keep pricing power. The fund’s performance rides on demand, and the data on AI spending says it stays strong. That’s where your investments sit. DRAM ETF Top Holdings The DRAM ETF top holdings pack most of the fund into a few names. Roundhill reports each company’s weight by combining its directly held shares with its total return swap positions, and on that basis Micron Technology is the largest at roughly 29%. SK Hynix sits close behind near 25%, with Samsung Electronics around 18%. Add those up and three companies account for about 71% of the portfolio. Below the leaders the weights thin out fast: Kioxia near 8%, SanDisk close to 6%, Seagate and Western Digital around 4% apiece, then Nanya and Winbond rounding out the memory names. Micron is the one to look at twice. It appears three times in the holdings, once as common stock and twice through swaps, which is how it ends up as the single biggest position. There’s also a sizable cash piece: roughly 15% of assets sits in a government money market fund that backs the swap exposure rather than tracking memory chips directly. Step back from the tickers and the fund’s geographic split is close to even at the top. By region, memory exposure

Markets This Week: 5 Things to Watch (June 15-19, 2026)

Markets are poised for an eventful week, most notably because the Federal Reserve will make a key decision about interest rates based on new inflation and labor market data. Sector divergence will also likely be strong this week, as there will be new developments that impact the real estate, technology, retail, and manufacturing sectors this week. This article will cover recent economic developments and address some of the potential top market movers this week. 1. Upcoming Federal Reserve Meeting The Federal Reserve will meet on June the 16th-17th to make a crucial decision about interest rates as inflationary risks heat up in the market. Inflation recently rose to a new high in May 2026, and there is a strong chance that the Federal Reserve may need to hike rates to bring inflation closer to its long-term target. Other Central Banks, such as the ECB, recently decided to hike rates due to recent inflationary pressure.1 There is a strong chance the Federal Reserve will hike interest rates, especially since inflation recently reached a 3-year high.2 US Inflation Rate A rate hike decision by the Federal Reserve would be negative for equity markets and could hit tech stocks the hardest. This decision, coupled with further developments in the energy sector this week, will strongly impact equity market sentiment. » Stay ahead of your finances: Join our free newsletters today 2. US Retail Sales Data The US Census Bureau will release US retail sales data from May on June 17th. This is an important trend to monitor, as it could impact key retail giants like Walmart, Nike, and other major retail companies. Last month’s data was relatively strong, showing 4.9% YoY growth and 0.5% MoM growth, but any disappointing data could be negative for the equity markets.3 Retail ETFs, such as the State Street PDR S&P Retail ETF (XRT), have had relatively flat YTD performance amid concerns of lingering inflation and slower economic growth. Additional rate hikes and sticky inflation could dampen retail sentiment and cause these stocks to correct in the short term. 3. Middle East Tensions and Manufacturing Outlook Manufacturing companies may face new headwinds in the upcoming months, as ongoing tensions in the Middle East have led to rising raw materials costs. According to a recent survey from Industrial Info, 83% of manufacturers cited rising raw materials prices due to conflicts in the Middle East as their primary concern.4 Overall, US manufacturing data has been strong in the first few months following tensions between the United States and Iran. The S&P Global US Manufacturing PMI recently hit 55.1 last month, representing a multi-year high.5 However, data may become much weaker in subsequent months. Investors should monitor continued negotiations between the United States and Iran next week, as this will have a strong impact on sentiment for US manufacturing stocks. 4. Technology Stocks Trends Sentiment for technology stocks has been cooling down, as seen by the strong underperformance of tech stocks relative to the broader market last week. Technology stocks will likely face another challenging week, as the Federal Reserve will make a key decision about interest rates. Tech stocks have recently been very sensitive to concerns that the strong Jobs report and rising inflation will lead to an interest rate hike.6 Accenture will also release earnings data next week, which should provide more clarity about the sentiment for US tech stocks. The market is currently expecting strong earnings for this stock, which has struggled with a circa 36% YTD decline.7 Any disappointing earnings results from Accenture and other tech companies could cause investors to flee to other less risky sectors, such as utilities or telecommunications stocks. 5. US Real Estate Investors should also keep an eye on developments in the US real estate industry, following the slight uptick in home sales in May.8 There are several pieces of data that investors should monitor, as real estate stocks are poised to have an eventful week. The US Census Bureau will release data about new housing starts and building permits on the 16th of June. This will provide additional data about whether we are heading for a cooldown in the real estate industry. Moreover, the Fed’s decision regarding interest rates will strongly impact real estate stocks, as higher rates would put more pressure on new homebuyers. House-related spending currently accounts for 15-18% of total household spending in the United States, so any negative developments in this sector could spill over to other consumer-related sectors.9 » Start investing today: Explore top brokerage accounts with our detailed review

High-Yield Savings Account vs Brokerage Account

Where Should Your Money Go? So you have some cash set aside, and you’re weighing a high yield savings account vs brokerage account. Which one should hold it? Start with the question behind the question. Where should your money go right now? Most people juggle four goals at once. An emergency fund for worst case scenarios. Short term savings for a near purchase. Money to invest for long-term goals. Where to hold cash while you wait to invest it. Each goal carries its own timeline, and the timeline ultimately should decide the right account. Matching the Account to Your Goal Here’s the test. Need the cash within a few years? Liquidity wins, so keep your money safe and easy to access. Planning to invest for a decade or more? You can take on market risk for higher growth. A down payment due next spring belongs in short term savings. Retirement savings you won’t touch for 30 years can ride the market. The key differences between these accounts come down to the big question: when will you need the cash? Answer that, and your plan almost writes itself. That’s the core of good personal finance. What Is a High Yield Savings Account? A high yield savings account is a savings account that pays much more interest than a standard one. You’ll find the best rates at online banks and credit unions, which skip the cost of branches and pass the savings on to you as higher yields. Open one, move your cash in, and it starts working right away. Want to see what that looks like in dollars? How a High Yield Savings Account Works to Earn Interest The difference in actual dollars is bigger than most people expect. The national average savings account rate sat at just 0.38% APY in May 2026, while a strong high yield savings account paid roughly 4% to 5%.1 Park $10,000 at that 0.38% base rate and you earn about $38 over a year. Move it to a high yield savings account near 4%, and the interest earned jumps to roughly $400. Same cash, ten times the yields and the interest earnings. Banks set a base rate that tracks broader interest rates, so what you earn can change over time. A few tenths of a percent on the APY still add up, so compare the highest APY accounts. FDIC Insurance and Monthly Limits Safety is the other half of the appeal. A high yield savings account at an FDIC insured bank protects your deposit up to $250,000, so even if the bank stumbles your savings stay covered. FDIC insurance kicks in automatically at member banks and credit unions. There’s a tradeoff. These are interest bearing accounts built for saving, so some set a monthly limit, capping withdrawals at a certain number each cycle, and a transfer can sometimes take a couple of business days to clear. Your HYSA interest also counts as taxable income, so expect a tax form once you cross $10 in interest earned for the year. Want the competitive rates without the friction? Compare a few accounts first. Many traditional savings accounts can’t offer higher rates, because those traditional savings accounts pay for branches and tellers, which keeps yields low. What Is a Brokerage Account? A brokerage account is an account you use to buy and sell investments like stocks, bonds, ETFs, or whatever else fits your plan. Before you invest, you fund it with a deposit, then you invest in the stock market whenever you want. It does more than hold stocks, though. Many of these accounts double as a place to keep cash, write checks, and spend with a card. Account Features That Set Brokerage Accounts Apart The account features go well beyond trading. Most brokerage firms now offer check writing, debit cards, and bill pay, which blurs the line between investment accounts and a bank account. You can hold Treasury holdings, money market funds, and individual bonds alongside your stocks. Some investors even run a robo advisor inside the account to automate their transactions. Transfers usually settle within a couple of business days. These are also the accounts behind most retirement accounts, so the same features carry over to your long term investment. How Brokerage Cash Can Earn Interest Here’s the part people sometimes miss. The uninvested cash in a brokerage account doesn’t have to sit there dormant. Most brokers sweep it into a program that pays interest. Cash management options often pay yields close to a strong high yield savings account. Charles Schwab, for one, sweeps uninvested cash to a network of partner banks. A brokerage bank-sweep program spreads your cash across multiple FDIC member banks, which can push total FDIC coverage above the $250,000 single-bank limit.2 So that cash earns a return while you decide where to invest next. Each deposit clears fast, and you can move cash between investments without a separate bank transfer. High-Yield Savings Account vs Brokerage Account How the two accounts compare. Figures as of mid-2026. Feature High-Yield Savings Account Brokerage Account Best for Money you may need within a few years, such as an emergency fund or short term savings Money you can leave invested for the long term, such as retirement or building wealth What you can hold Cash deposits only Stocks, bonds, ETFs, money market funds, brokered CDs, and Treasuries Typical return National average 0.38% APY; top accounts roughly 4% to 5% APY Varies with the market; the S&P 500 has averaged about 10% a year since 1957 Earns interest on cash Yes, on the full balance Yes, on uninvested cash through money market sweeps Insurance FDIC insured up to $250,000 per bank SIPC up to $500,000 per customer (including $250,000 for cash); bank sweeps can extend FDIC across multiple banks Risk of losing money Very low; your principal is protected Yes; investments can fall in value, and no insurance covers market losses Liquidity High; cash is available quickly High for cash; selling some holdings can take a day or

Markets This Week: 5 Things to Watch (June 8-12, 2026)

The S&P 500 fell by around 2.5% this week, mainly due to the strong market sell-off on Friday. The combination of inflationary pressures and an uptick in new jobs led many investors to worry about rate hikes in the coming quarters. Tech stocks were hit the hardest, while there were several positive market movers this week. Here are some of the recent major economic developments, as well as the top market movers this week. 1. Tech Stocks Sell Off Friday was a challenging day for the market, as the S&P 500 fell by nearly 3% during the trading day. The market is strongly concerned about potential rate hikes following the new labor market data, which resulted in strong selling pressure for technology stocks. The Nasdaq, which has an even heavier tech weighting, fell by 4% on Friday.1  The Vanguard Information Technology ETF (VGT) fell by over 6% on Friday, erasing some of its stellar YTD gains. Major tech themes like quantum computing also sold off strongly on Friday, with many industry leaders falling by over 11%.2 Tech stocks have been the main driver of recent market performance, but may be very vulnerable to short-term pullbacks amid new economic risks in the market. » Stay ahead of your finances: Join our free newsletters today 2. New Jobs Report Increases Rate Hike Risks Markets responded poorly to the newly released Jobs report, which showed that the labor market is much stronger than expected. This new data, coupled with rising inflation in recent months, signals that the Federal Reserve may have to hike interest rates. The US economy created over 150,000 jobs in May, while the unemployment rate remained steady at 4.3%.3   This report surprised the market, as it is the third consecutive positive report amid the new rise in inflation in the markets. All eyes will be on the Federal Reserve as it processes this new information, as well as subsequent inflation readings. 3. New Inflation Concerns One of the main events in markets next week will be the release of new inflation data on June 10th. Oil prices remained above $90/barrel for most of May, and other indicators like services inflation have also been rising near a twelve-month high.4 Friday’s exaggerated sell-off shows that the market is currently very sensitive to any news surrounding potential rate hikes, so markets could sell off strongly again due to any poor inflation readings. Sentiment is mixed, but many economists are calling for higher inflation, especially if tensions in the Middle East continue. According to the Survey of Professional Forecasters, inflation may hit 6% this quarter.5 Investors should keep an eye on the upcoming CPI data this week. Hotter inflation could cause further market corrections if higher readings further exacerbate fears of a potential rate hike. 4. Top Performing Sectors While themes like information technology and consumer discretionary stocks were slammed on Friday, some themes managed to hold their ground amid the broader market sell-off. Some of the best-performing sectors on Friday included consumer staples, utilities, real estate, healthcare, and financials stocks.6 This trend highlights how themes with higher valuations, like consumer discretionary and IT stocks, were more sensitive amid the new fear of rate hikes.     Other alternative investments, like bitcoin, also experienced a strong sell-off on Friday. The price of bitcoin fell by nearly 20% during the trading week, its largest weekly decline since the collapse of FTX in late 2022.7 5. Gold’s Rising Relevance Gold has been one of the best-performing commodities in recent quarters. One of the main developments supporting gold has been increased buying from Central Banks. Gold recently surpassed treasuries to become the top global reserve asset, according to an ECB report.8 This is very positive news for gold, which has become a strong safe haven for Central Banks, institutional investors, and retail investors alike. » Start investing today: Explore top brokerage accounts with our detailed review

Brokerage Account vs IRA: What’s the Difference?

Two Types of Investment Accounts Most people saving use one of two main investment accounts, and plenty assume they should pick just one. You don’t. A brokerage account and an IRA do different jobs, so your choice depends on your financial goals and your timeline. A brokerage account is built for flexible investing at any age. An IRA, short for individual retirement account, carries tax advantages a brokerage account doesn’t have. IRAs are retirement accounts in the tax code. Taxable brokerage accounts are not. Both are investment accounts, both can hold the same investment funds and stocks, and both can grow your money for decades. They’re two tools in one drawer. One gives you freedom, the other tax advantages for following a few rules. What Is a Brokerage Account? A brokerage account is an investment account you open at a registered brokerage firm to buy and sell stocks, bonds, mutual funds and ETFs.1 Those exchange traded funds (ETFs) and other securities trade right through it. There’s no annual cap on what you add. Your money stays liquid, so you can sell and withdraw anytime. All investing involves risk, since values rise and fall. If you’d like to compare providers, see our list of best brokerage accounts. How an Individual Brokerage Account Works An individual brokerage account is the standard setup, owned by one person. You fund the individual brokerage account from your bank, pick from stocks, bonds, mutual funds and more, and place trades yourself. It’s self directed, so no advisor signs off. You can open an individual brokerage account online in minutes at almost any financial institution, often with no initial investment minimum. Once the cash settles, the individual brokerage account is yours to invest. Want to share ownership? A joint individual brokerage account works the same, two names instead of one. Taxes on a Taxable Brokerage Account Here’s the catch with taxable brokerage accounts: the IRS wants a cut along the way. Sell a stock for a $1,000 gain and that profit can be taxed the year you sell. Dividends and interest income get taxed too. Say you book $1,000 in investment earnings inside a taxable investment account. Depending on your bracket, you might pay taxes of a couple hundred dollars. A brokerage account is fully taxable. Taxable brokerage accounts give no shelter, so plan for the bill accordingly. That yearly drag is the price of the flexibility taxable brokerage accounts offer. What Is an Individual Retirement Account? An individual retirement account, or IRA, is built for retirement savings and comes with real tax benefits, and many traditional contributions are tax deductible. You can put in up to $7,500 a year for 2026. A brokerage account has no such cap. An individual retirement account comes in two types, a traditional IRA and a Roth IRA, taxed in opposite ways. Both are retirement accounts and tax advantaged accounts. The tax benefits are the whole point. Your money grows deferred or tax free, depending on which you pick.  Traditional IRA vs Roth IRA The difference between these two account types is about when you get the tax break. A traditional IRA often gives a tax deduction the year you contribute, so traditional IRA contributions can lower your taxable income now, and you pay income tax later, at withdrawal. A Roth IRA flips that. You fund a Roth IRA account with after tax dollars and claim no deduction today, so it grows deferred or tax free. Tax deductible contributions cut your bill now, while a Roth keeps its tax deductible perk for retirement instead. Younger savers often lean Roth. Want the retirement side first? Here’s our breakdown of Roth IRA vs Traditional IRA. How Tax Deferred Growth Works Inside a traditional IRA, your investments compound with no yearly tax bill, fully tax deferred. That’s tax deferred growth. You don’t report dividends or capital gains each year, so nothing leaks to taxes while you work. Letting the account grow tax deferred for two or three decades can mean tens of thousands more at retirement, because every dollar that would have gone to the IRS stays invested and compounds. The tax comes due only at withdrawal time. You can read more about the top investments to keep in an IRA to maximize your investment opportunities. Tax-Free Withdrawals From a Roth IRA The Roth IRA payoff lands in retirement. You already paid the tax going in, so your money grows tax free and qualified withdrawals come out completely tax free after 59½. Money in a Roth account just keeps building. That tax free growth is why a Roth IRA is so popular with younger investors. Tax free withdrawals also keep reported retirement income lower, and tax free growth rewards waiting. Once you reach retirement, the investments you hold can become just as important as the account itself. Here are some of the best ETFs to hold in an IRA during retirement. IRA Contribution Limits for 2026 For 2026, the total across all your IRAs is $7,500, or $8,600 if you’re 50 or older.2 Those IRA contribution limits cover a traditional IRA and a Roth IRA combined, not each separately. The annual contribution limits set by the IRS tend to rise every few years. Split your Roth IRA contributions and traditional dollars however you like under the cap. You can contribute to a Roth or a traditional account, your call. For the income side, see our guide to Roth IRA contribution limits. These contribution limits usually reset each January. Roth IRA Income Limits for 2026 A Roth IRA also has income limits. For 2026, you can make a full contribution if your income is under $153,000 single or $242,000 married filing jointly. Earn more and the amount you can contribute to a Roth phases down, then stops. A traditional IRA has no income ceiling to contribute, though a workplace retirement plan can limit your tax deduction. These income limits change every year, so check first so you can plan based on those limits. Brokerage

Markets This Week: 5 Things to Watch (June 1-5, 2026)

The U.S. economy is beginning to deliver new warning signs, including a cooldown in real estate and consumer sentiment as inflation risks rise. However, performance was strong this week as tech stocks helped to support the S&P 500. New peace talks between the United States and Iran also supported the market this week. Below are five major developments in the markets this week, as well as some of the top market movers this week. 1. Oil Price Decline Amid Inflationary Concerns The price of oil continued its descent during the week, driven by new peace talks between the United States and Iran. The price of crude oil fell to $88/barrel on Friday, marking an 18% monthly decline.1 Oil equities have pulled back strongly on this news, following their strong YTD rally. The VanEck Oil Services ETF fell by 6.3% during the trading week, while the State Street Select Sector SPDR Energy ETF declined by 5%. At the moment, a rebound in inflation appears to be one of the highest risks in the market, one that will put pressure on the Federal Reserve’s interest rate policy. The Fed needs to see lower inflation levels before it can consider moving forward with rate cuts. » Stay ahead of your finances: Join our free newsletters today 2. US Economic Growth Recovers Slightly in Q1 2026 After delivering weaker growth in Q4 2025, the US economy has rebounded slightly this quarter. This news is positive, as concerns have been growing about slower growth amid geopolitical tensions and higher energy prices. Q1 2026 economic growth was 1.6%, compared to 0.5% in the previous quarter.2 One positive sign in the economy has been the growth in manufacturing activity during the first quarter of this year.3 However, supply-side risks coupled with weaker consumption as inflation picks up could result in lower growth in subsequent quarters. Other regions, such as the EU, have also been cutting their growth forecasts for this year. 3. Consumer Confidence at a New Low The geopolitical shocks in the Middle East have begun to put new stress on consumers, especially since inflation has risen in many regions since the end of February this year. The University of Michigan’s Consumer Confidence Index recently plunged to a 1-year low.4 This tension has been evident in the performance of consumer stocks. We previously touched on how even safer consumer staples giants like Walmart have been facing pullbacks amid weaker 2026 guidance. The Vanguard Consumer Staples Index Fund ETF fell by around 2% this week due to the hazy consumer staples sector outlook. 4. Real Estate Slowdown The U.S. real estate industry is beginning to experience signs of a slowdown this year, as higher financing costs and lower economic optimism have caused housing sales to decline. Recent monthly data from the industry shows that home sales in the United States fell by 6.2% last month.5 Real estate equities have been very sensitive to this stagnating trend. The iShares U.S. Real Estate ETF (IYR) fell by over 2% this week and has had flat performance this month following its mild Q1 rally. This trend is certainly worth monitoring in the coming months, as RE equities and even high-yielding REITs may fall out of favor due to weaker sentiment in the real estate industry. 5. Tech Stock Rally Although many sectors declined during the trading week, tech stocks were the strongest market movers this week. The iShares U.S. Technology ETF (IYW) rallied by more than 3% this week, providing massive support to the S&P 500 as other sectors lagged. Tech giants like Microsoft rallied strongly during the week, and other older dot-com darling stocks like Dell, Cisco, and Nokia have been booming amid new AI optimism.6 Tech stocks are a key driver of the S&P 500, as they have rallied 26% this year and currently account for around 35% of the S&P 500.7 However, it is still important to keep an eye on valuations and monitor the risk of any future pullbacks this year. » Start investing today: Explore top brokerage accounts with our detailed review

10 ETF Portfolios Backtested: The Results Might Surprise You

What We Tested and Why Portfolio Structure Matters If you had put $100,000 into any of these portfolios back in January 2016, the gap between the best outcome and the worst is an eye-opening $300,000. That’s what portfolio structure can cost or earn you over time. With so many ETFs available today, most people never get a direct side-by-side comparison backed by real data. That’s what we are putting in front of you today. We ran 10 model portfolios through 10 years of proprietary analysis (January 2016 to December 2025) on a $100,000 starting balance. These are the ETF portfolio structures investors debate most online, in books, and across investing communities, each built around different investment objectives, risk profiles, and underlying philosophies. Exchange-traded funds trade throughout the day on national stock exchanges at market prices, which makes them far more flexible than mutual funds for building and adjusting a diversified ETF portfolio.1 For a full comparison of how those structures differ, the ETFs vs. mutual funds article walks through the key differences. Each ETF portfolio below is built from individual securities, uses a unique investment strategy, and can be copied on most platforms. The net asset value of an ETF reflects its underlying holdings, but they trade at their market price throughout the day. The allocation model changes across each setup, and the results are more varied than most expect. If you’re new to exchange-traded funds, check out our guide on How to Invest in ETFs: Step-by-Step for Beginners before building your own portfolio. The 4 Stats That Actually Matter for Any Asset Allocation Decision So what numbers should you actually care about? For this test: 10-year CAGR, end balance on $100,000, standard deviation, and maximum drawdown. The CAGR gives you the annualized return over the full period. The end balance makes percentages tangible. Standard deviation measures year-to-year volatility, how much the annual returns bounced around to produce that CAGR. Lower standard deviation means a smoother ride, while higher means bigger swings in both directions. Max drawdown is the worst peak-to-trough loss during the period, which is tied to risk tolerance, because it tells you whether you could have held through the tough times. These four cover return, scale, volatility, and risk in one run. The Benchmark: Why VT Was Used as the Baseline Instead of the S&P 500, VT (Vanguard Total World Stock ETF) serves as the benchmark for this test. It represents the broadest possible equity exposure in a single fund, covering U.S., developed international, and emerging markets all at once. That makes it the most honest baseline for comparing portfolios with different geographic tilts. Every portfolio below is measured against it. Over the 10-year test period, VT posted an 11.77% CAGR, growing $100,000 to $304,201 with a -25.52% max drawdown and a standard deviation of 14.68%. Just so you know, the S&P 500 (via VOO) returned a 14.79% CAGR over the same period.2 The investment strategies that worked in this window all had a significant U.S. stock market focus, specifically on large-cap growth positions, and kept fixed income light despite climbing interest rates. » Stay ahead of your finances: Join our free newsletters today ETF Portfolio Examples: All 10 Tested Side by Side Here’s how all 10 ETF portfolio examples did from January 2016 through December 2025, starting from $100,000. All results are from proprietary analysis. Mutual funds and actively managed products were excluded. Every position here is a passive index ETF or low-cost fund. VT (Vanguard Total World Stock ETF) is the benchmark.  10 ETF Portfolios Backtested Over 10 Years | January 2016 – December 2025 | $100,000 Starting Balance Portfolio # of ETFs 10-Yr CAGR End Balance ($100K Start) Std Dev Max Drawdown VT — Benchmark 1 11.77% $304,201 14.68% -25.52% Warren Buffett (2-Fund) 2 13.57% $356,866 13.56% -21.98% DS Taxable Growth (2-Fund) 2 16.62% $465,175 16.17% -27.75% Bogleheads (3-Fund) 3 10.79% $278,688 12.42% -23.12% YouTubers (3-Fund) 3 15.63% $427,376 15.04% -24.03% Paul Merriman (4-Fund) 4 11.87% $306,877 16.68% -27.42% Ray Dalio All Weather (5-Fund) 5 6.61% $189,595 8.55% -20.68% David Swensen (6-Fund) 6 7.95% $214,930 10.88% -22.31% Coffeehouse (7-Fund) 7 7.07% $197,996 10.52% -19.70% DS Ultimate (9-Fund) 9 17.36% $495,844 15.65% -26.60% Notes: All results from proprietary Portfolio Visualizer analysis (Jan 2016–Dec 2025). VBR used as small-cap value proxy for Paul Merriman backtest; AVUV recommended going forward. FBTC excluded from DS Ultimate historical data due to BTC early momentum being an outlier. 1. Total World 1-Fund ETF Portfolio (VT): The Benchmark One ETF and done. The world’s simplest portfolio strategy is the Vanguard Total World Stock ETF (VT). It holds close to 10,000 stocks across global markets that consist of the U.S., developed international, and emerging markets. It’s also the benchmark for this entire test, chosen because it gives you the broadest possible equity exposure out there, that you can get with one convenient purchase. If your portfolio can’t beat it, a single 0.06% ETF would have done the job. The results after 10 years: VT returned 11.77% a year, ending up with a balance of $304,201, with a standard deviation of 14.68%, that’s volatile, and a max drawdown of -25.52%, a significant fall. And VT trailed the S&P 500 by around 3 percentage points a year, mostly because international stocks didn’t do nearly as well. The expense ratio is 0.06%, which is low for one ETF covering the entire global market. If you want broad market exposure and zero maintenance then you can’t get much simpler than this. 2. Warren Buffett 2-Fund Portfolio Buffett recommends something here that actually makes a lot of sense; put 90% of your portfolio funds into a low-cost S&P 500 ETF and 10% into a short-term government bond ETF. You can take his word for a lot, he has credibility. His track record at Berkshire Hathaway spans decades and has made him one of the wealthiest people alive.  The results after 10 years: a 13.57% yearly return, with an ending balance of $356,866, standard deviation of 13.56%

How To Invest In Crypto For Beginners (2026)

What Is Cryptocurrency? Bitcoin launched in 2009 as the first cryptocurrency, built on a simple premise: a form of digital money that operates without a central bank, with a decentralized network of computers verifying transactions instead of a bank. The total amount of Bitcoin in circulation is capped at 21 million coins by design, and new Bitcoin enters the market at a decreasing rate. That built-in scarcity works in a similar way to the value of gold, establishing Bitcoin as a store of value and driving the innovation behind all those other digital currencies that followed. These days, cryptocurrency is a recognized asset class with trillions in total value. If you are ready to start investing, doing some research on our best cryptocurrency platforms review is a great place to start. How Blockchain Technology Works Blockchain technology is the underlying technology that makes cryptocurrency possible. A blockchain is a distributed ledger, a record of transactions stored simultaneously across thousands of computers worldwide with no central server holding the data. Each transaction gets grouped into a block. Once verified, that block gets linked to the one before it. Blockchain transactions are extremely difficult to alter because changing any one entry requires changing every block after that across every node, at the same time, which is practically impossible. You don’t need to become a master in blockchain technology to invest in cryptocurrency. The basics are enough for you to understand what you are buying into. How Does Blockchain Work? When you send cryptocurrency, the blockchain technology starts to work right away. The transaction is broadcast to all the nodes on the network, each one of which verifies your ownership of the assets. Once enough nodes have confirmed it, the transaction gets sealed into a new block and is locked in permanently. Blockchain is a much faster and more efficient way of doing things than traditional banking methods. A bank transfer can take days to go through multiple clearing houses, but a crypto transfer settles peer-to-peer in minutes. Blockchain technology also enables decentralized finance (DeFi), which allows financial services like lending and trading to operate without traditional banks using smart contracts. However, most beginners focus on Bitcoin and Ethereum first. Main Types of Crypto Not all cryptocurrency is the same. Here are the four categories that most beginners will come across: Bitcoin (BTC): The original and the biggest by market cap. Primarily thought of as a store of value. New crypto coins tend to follow Bitcoin’s price direction when things get volatile. Altcoins: Cryptocurrencies other than Bitcoin that offer different features like smart contracts or faster transactions. Stablecoins: Cryptocurrency pegged to the US dollar or another stable asset. Used to hold a market position without taking on too much price risk. Exchange Tokens: Coins created by crypto exchanges that give users benefits like lower trading fees and rewards. How Crypto Wallets Work A crypto wallet doesn’t actually hold your cryptocurrency, it holds the private keys that prove you own it and allow you to transfer it. According to the SEC, the actual coins stay on the blockchain, the wallet is just the access point.1 Lose access to your own wallet’s private keys, and there is no recovery. There are basically three custody options to keep your coins safe: custodial wallets managed by a crypto exchange, self-custody hot wallets you control through software, or cold storage hardware wallets that stay offline. Most beginners start with custodial, which is like having a bank account, the security is handled by the platform. How to Buy Crypto To buy crypto, open an account on a platform like Coinbase or Gemini, complete identity verification, and link a bank account or debit card as your payment method. Search for the cryptocurrency you want, put in the amount you want to invest, and confirm. It’s basically that simple. A few things to keep in mind before you make your first trade: the fees on different platforms can vary wildly, and on top of that you need to watch out for other costs like ‘spread charges’ that can really add up if you’re buying in small amounts. Turn on two-factor authentication right away, security is way more important here than it usually is on other financial platforms. Cryptocurrency Trading vs. Crypto Trading Before putting money in, ask yourself: are you planning to actively trade crypto, or are you simply looking for long-term exposure? If you’re thinking of actively trading, that means keeping a close eye on market data every day, reading up on all the latest news, and making trades whenever you see an opportunity, and sometimes using specialized tools like futures contracts to get an edge. The problem is, that kind of trading requires a lot of time and a high tolerance for risk. For most people though, trading crypto just means buying a few coins, holding on, and reviewing every now and then. People who go in without a solid plan tend to do a lot worse than those who are just holding for the long term. If you do want to trade actively though, you will need to be ready to compete with professionals who have real-time market data and are working round the clock. How To Invest in Crypto: Your Crypto Investing Options There are basically three main ways to get into crypto, and which one is best for you will depend on your investment strategy and how much risk you are willing to take on. Buying directly through a crypto exchange is the most straightforward way to start. Set aside an initial amount, even $20 or $50 is enough to get going on most platforms, and buy some fractional coins. Long-term investors who own the coins directly have a lot more control over their investments, and they can also trade at will if the value goes up or down. The catch is that these investments do require some active management to keep them secure. The two options below are for people who want to get some exposure to

Markets This Week: 5 Things to Watch (May 26–29, 2026)

The market ended on an optimistic note this week due to a newly proposed peace agreement between the United States and Iran. However, there are still multiple economic headwinds in the market, including inflation and rate hike risks, which have made investors cautiously optimistic. Some of the top market movers this week included utilities and telecommunications stocks, while major tech giants underperformed. Here are five major developments to keep on your radar. 1. Further Wave of Tech Layoffs AI-driven tech layoffs have remained dominant during the first half of 2026. Meta Platforms recently announced that it plans to eliminate 8,000 employees.1 This is part of a broader trend among many tech companies as they increasingly implement AI. AI-driven job cuts currently account for around 17% of total layoffs in 2026, according to Challenger, Gray & Christmas.2 While April’s Jobs data was encouraging, there are still many weak areas in the labor market.3 Areas like manufacturing and federal employment have experienced strong declines in employees since the beginning of the year. Further layoffs in tech and other traditional industries like manufacturing may result in more unfavorable Job reports in the upcoming months. 2. Weak Consumer Sentiment and Walmart’s New Guidance Consumers are beginning to feel more pressure from tightening economic conditions, and this trend will likely increase as inflation continues to take a toll on the economy. Retail sales growth during the first four months of this year has been encouraging.4 However, some leading retail companies are beginning to lower their guidance amid recent economic and geopolitical tensions. One of the best companies to monitor to track retail sentiment in the United States is Walmart, as demand for its products generally remains more consistent during slower and/or inflationary cycles. However, shares of Walmart fell by 8.7% this week amid its weakened guidance and warnings that it may need to raise prices due to rising fuel prices.5 Even cautious picks like Walmart seem vulnerable as the risks of long-term inflation and stagnation heat up. 3. Positive US-Iran Sentiment Supports End-of-Week Performance The market began to rally during the second half of the week following optimism about peace talks between the United States and Iran. However, Iran has criticized the United States’ excessive demands, and the United States has not finalized any agreement.6 Oil prices fell slightly on this news, and crude oil is currently below $100/barrel. Equity markets performed better on Thursday and Friday due to this news, and could experience pullbacks next week if there are any setbacks with this deal. 4. EU Growth and Inflation Forecast A common risk among global markets is the potential for slower growth and an uptick in inflation. The risk of a stagflationary environment during 2027 is also in the cards. The European Union recently released new economic forecast data, which calls for weaker growth and a new rise in inflation. It is crucial to note that these current projections are still very moderate, as inflation rose much higher in 2022 due to tensions between Russia and Ukraine. H2 2026 could bring much gloomier projections if tensions in the Middle East continue. 5. Utilities Stocks Deliver Stellar Gains Utilities stocks surprised the market this week, significantly outpacing other defensive themes like consumer defensive stocks. According to data from Morningstar, utilities stocks drastically outperformed the broader US market and consumer defensive stocks, too. These stocks outperformed leading tech giants like Meta Platforms, Netflix, Nvidia Corporation, and Microsoft. This signals that the market may be looking for more cautious alternatives as optimism for Mag7 stocks fades. » Start investing today: Explore top brokerage accounts with our detailed review

How to Open a Taxable Brokerage Account

What Is a Taxable Brokerage Account? A taxable brokerage account is an investment account where you can buy stocks, ETFs, mutual funds, individual stocks, bonds, and other securities. There are no annual caps, and no restrictions on when money can be withdrawn. The “taxable” part of the name describes how your gains in that account are treated. A Roth IRA is funded with after tax dollars, and gains grow tax-free. Traditional 401(k) contributions grow tax-deferred on pre-tax dollars. In a taxable account, capital gains taxes apply in the year a gain is realized, and dividends are taxed in the year they’re paid. That’s a key difference from other investment accounts where taxes are deferred or avoided entirely. Taxable brokerage accounts give you complete flexibility: you can contribute any amount, any time, with no restriction on withdrawals and no retirement savings requirement attached. For those who have maxed out tax-advantaged accounts and want to keep adding to their own investments, a taxable account is the natural next move. Before anyone decides to open a brokerage account, it’s worth knowing that SIPC protection covers brokerage account assets up to $500,000, including a $250,000 limit for cash, if the brokerage firm fails.1 It works similarly to FDIC insurance for a high yield savings account, just structured for investment accounts. Types of Investment Accounts: How Taxable Brokerage Accounts Work When you open a taxable brokerage account, one of the first decisions you’ll make is what kind of account you want. Most brokerage firms will offer you three different options. Cash Account A cash account is the simplest structure if you want to manage your own investments directly. All purchases must be paid for in full, with no borrowing money from the broker allowed. Many investors in cash accounts also hold low-risk, cash-equivalent investments like money market funds, which are commonly used for parking cash while earning interest. For most people opening their first brokerage account, a cash account is the right starting point. Margin Account A margin account is for investors who want to be able to borrow money from the broker to make purchases. This can increase your purchasing power, but losses can also be amplified in the same direction as gains. One thing to look out for is that some brokerage applications will default to a margin account when you open a new account.2 Make sure you know what you’re getting into before you make that final commitment. If options trading is part of your plan, you will also need to review and acknowledge the options disclosure document. Managed Brokerage Account A managed brokerage account is for investors who want to put their portfolio in the hands of a professional or robo-advisor. This means you’ll be guided by the investor’s goals and risk tolerance, and there will be an advisory fee on top of the standard costs of the funds you’re buying. It’s a good option for anyone who wants a hands-off approach to owning mutual funds, ETFs and individual stocks. How to Open a Brokerage Account Step by Step Taxable brokerage accounts can be opened at most major brokerage firms in about 10 to 15 minutes. Here’s what to expect at each stage. Setting Up Your New Account To open a brokerage account, you’ll need to provide the same basic information as you would to open a bank account: name, address, Social Security number, date of birth, and employment status. You’ll also want to be prepared to answer some questions about your investment goals and risk tolerance. Most brokerage firms link to your bank account, savings account or checking account to make it easy to transfer funds. Many platforms have a $0 minimum investment requirement to get started, and your account will usually be ready to use within minutes of funding. Before you finalize the new account, double-check to see if it defaults to a cash or margin structure – some applications will default to margin, which is worth checking before you click through to the final setup steps. What to Look for in a Brokerage Firm For people ready to get started investing and open a brokerage account, the key things to be thinking about are commission free trading, being able to start out with $0 in your account, and having a range of investment options including ETFs, mutual funds and individual stocks. The quality of the mobile app, how easy it is to get help from customer service, and setting up automatic investment contributions all play a part in the comparison. For a side-by-side of the best brokerage accounts available at the moment, InvestLane has put together a detailed rundown to look over before making a decision. Capital Gains Taxes in a Taxable Brokerage Account When you sell investments at a profit in a taxable brokerage account, it triggers a taxable event. You will pay capital gains taxes in the year you actually get the gains, and understanding how capital gains tax rates work can make a real difference in how much you get to keep. Short-Term Capital Gains Short term capital gains apply to investment earnings from assets you hold for one year or less. These gains are taxed as ordinary income at the investor’s standard federal tax rates, which can run as high as 37% for top earners.3 The tax treatment here applies the same way to wages and salary. Investors pay taxes on short-term gains at their top marginal rate, with no special treatment for investment income held less than a year. The Benefit of Long Term Capital Gains Hold onto an investment for longer than a year, and the rules change. You qualify for lower tax rates: 0%, 15%, or 20%, depending on how much taxable income you have. For 2025, if you’re single and your taxable income is $48,350 or less, you pay 0% on long term gains. Most middle income investors fall into the 15% bracket. And just think about how much of a difference that can make. Take a $10,000 gain that

What Is a Taxable Brokerage Account?

What Is a Taxable Brokerage Account? Most people start out with some type of retirement account. Maybe a 401(k) through work, or a Roth IRA of their own. Those accounts have some great tax benefits, but they come with rules such as contribution limits, income restrictions, and age requirements for withdrawals. A taxable brokerage account doesn’t have any of those constraints. A taxable brokerage account is just a standard investment account held at a brokerage firm. You can buy and sell stocks, ETFs, bonds, REITs and other securities with no cap on how much you put in, no income phase-out, and no penalty for withdrawing money any time you like. The tradeoff is that the tax treatment is a bit different that that of tax-advantaged accounts. Capital gains, dividends and interest income in a taxable brokerage account get reported to the IRS in the year they’re earned. That’s different from a 401(k), where you get to defer taxes until withdrawal, and from a Roth IRA, where qualified withdrawals are tax-free. Having a good understanding of the tax implications for each account type is key to using a taxable brokerage account effectively. Keep in mind that this is an investment account, not a savings account. The money you put in is still subject to market risk, alongside the potential for long-term growth. Since it’s a taxable account, choosing tax-efficient investments can also help reduce unnecessary tax drag, as discussed in our article 5 Tax-Inefficient Investments to Avoid in Taxable Accounts. » Start investing today: Explore top brokerage accounts with our detailed review Investing Beyond Retirement Accounts There’s a common assumption out there: that once you’ve maxed out your 401(k) and Roth IRA, your investing job is done. That assumption can keep you from some real opportunities to grow your money. Retirement accounts are designed to be capped, by law. A taxable brokerage account has no such ceiling. It’s great for excess retirement savings after you’ve hit those limits, and it’s perfect for goals that fall outside traditional retirement age, like building up a down payment, buying an investment property, or even trying to reach financial independence before 65. Contribution Limits and Income Limits: What a Taxable Brokerage Skips The 401(k) employee contribution limit for 2026 is $24,500, and that’s before any employer match. The Individual Retirement Account (IRA) limit is $7,500 total across all IRA accounts, since IRAs are funded entirely with your own money and not tied to an employer plan.1 A taxable brokerage account, on the other hand, has none of those restrictions. No annual cap. No income limits. No April 15th deadline. For investors who’ve hit their retirement account contribution limits, a taxable brokerage account is where the rest of their capital can go. Stocks, Mutual Funds, and ETFs: What You Can Hold Here Taxable brokerage accounts open up a wide range of investment options for you. Stocks, ETFs, bonds, REITs, and mutual funds are all available, along with most investment options found inside a specific retirement account. One distinction that is important: ETFs tend to be more tax-efficient than mutual funds in a taxable account. Mutual funds can push capital gains distributions to shareholders even when nothing was sold, creating a taxable event the investor didn’t trigger. For anyone trying to manage annual taxes carefully in taxable accounts, tax efficient investments like ETFs are worth prioritizing over mutual fund alternatives. How a Brokerage Account Is Taxed A brokerage account taxed at the standard rates on realized gains works differently from tax deferred accounts where gains accumulate without annual reporting. There are three events that create a tax obligation: selling at a gain, receiving dividends, and earning interest income. The timing of when you sell will determine what you pay taxes on in a given year. Capital Gains Tax Rates: Short-Term vs. Long-Term The capital gains tax rates that you end up paying depend on how long you held the investment. Short term capital gains, on securities held 12 months or under, are taxed as ordinary income, with top rates reaching 37%. Long term capital gains, from investments held more than 12 months, are much lower. Rates start at 0%, then go to 15%, or 20% based on taxable income.2 For 2026, the 0% long term capital gains rate applies up to $48,350 in taxable income for single people and $96,700 if you are married filing jointly. Many middle-income investors fall in that range and pay taxes on short term gains but nothing on long term capital gains. The practical value here is real. Hold a position for 13 months instead of 11 and a $5,000 capital gain moves from being taxed as ordinary income to the long term capital gains rate, and that shows up in real dollars on your tax return. Tax Loss Harvesting to Cut Your Tax Bill Tax loss harvesting is one of the more useful tools available to investors. When an investment has fallen in value to below what you paid for it, selling it locks in a loss that you can use to offset capital gains taxes first. If there’s still a loss after offsetting gains, the remainder can reduce your ordinary income by up to $3,000 per year. Anything left over then carries forward to future years.3 This tax strategy is only available in taxable brokerage accounts though. Gains and losses inside a 401(k) or IRA aren’t tracked annually for tax purposes, so there’s nothing to harvest inside those accounts. Important thing to remember: the wash-sale rule. Selling at a loss and buying back the same or substantially identical security within 30 days before or after the sale cancels the deduction. To keep the benefit, just wait out the 30-day window or replace the position with a similar but distinct holding. Tax Deferred Accounts vs. Taxable Accounts Traditional retirement accounts work on a tax deferred model: you get a tax deduction when you make a contribution, which lowers your income for the year. The money then compounds tax free until

Markets This Week: 5 Things to Watch

The market was rocked this week by a flurry of economic and political data. Some major developments included new inflation data, changes in Federal Reserve leadership, and rising U.S. Treasury yields. The market swiftly corrected on Friday following a rally during previous trading sessions. The combination of weaker economic data and ongoing political tensions will likely continue to shape equity market sentiment in the upcoming weeks. Below are five major economic and capital market developments this week to keep on your radar. 1. April CPI Report April’s new CPI report came in hotter than expected. The Consumer Price Index (CPI) rose by 0.6% MoM on a seasonal basis, equivalent to 3.8% YoY increase.1 One of the main drivers of this annual increase was the 3.8% YoY rise in energy prices, while all items minus food and energy only rose by 2.8%. Sustained political tensions in the Middle East could produce more unfavorable readings in the upcoming months and would put pressure on the Federal Reserve’s monetary policy. 2. Oil Prices Continue to Rise Amid Geopolitical Tensions Oil prices rose by more than 3% on Friday amid heightened geopolitical tensions in the Middle East. The price of crude oil reached $106/barrel on Friday, representing a 11% weekly gain.2 Oil ETFs rallied by around 3-4% during the trading week. Rising oil prices will likely continue to put pressure on the Fed’s interest rate policy and could also continue to push treasury yields upward. 3. New Federal Reserve Chairman Kevin Warsh has been appointed the new incoming Fed Chairman, following a strong pushback from President Donald Trump on his rate policies.3 The Federal Reserve recently chose to keep rates steady during its recent meeting, due to fears of the consequences of prematurely cutting rates amid the current supply-side and inflationary tensions.4 While Warsh has been more vocally supportive of potential interest rate cuts, the surge in food and energy prices will make this feat difficult in the short term. 4. Rising Treasury Yields and Equity Market Impact The rate on U.S. Treasury yields recently surged to a 1-year high of 4.6% amid new inflationary concerns in the market.5 Additional pressure may force yields back to the previous 2023 high of nearly 5% under the Biden Administration. One important factor to monitor is the impact on U.S. equity markets, which currently track at multi-year highs in terms of valuations. Rising yields may push more investors in the market to prefer treasuries over equities. 5. Semiconductor Boom Reverses This Week Semiconductor stocks posted strong gains during the past week, but began to correct during this trading week. The iShares Semiconductor ETF fell by more than 3% this week, following its massive rally during the previous trading week. However, these equities have rallied by more than 60% YTD, well ahead of the S&P 500 and other sectors.6 Semiconductor giants like Nvidia have historically been some of the main drivers of the S&P 500’s rally. Any setbacks could be detrimental, especially if they are paired with a broad-based correction in tech equities. » Start investing today: Explore top brokerage accounts with our detailed review

How to Open a High Yield Savings Account

Why a High Yield Savings Account Beats Traditional Banks Let’s say you have $10,000 sitting in a Chase or Bank of America savings account. At the national average, that balance earns you roughly $39 a year. Move the same $10,000 to a high yield savings account paying 4% APY and the interest jumps to about $400 after a full year, assuming rates stay constant. Same money, same risk profile, but now you make ten times the return. Feature Traditional Bank Savings High Yield Savings Account Typical APY 0.39% (national average) 4% Interest on $10,000 (1 year) $39 $400 FDIC insured Yes, up to $250,000 Yes, up to $250,000 Branch access Yes, physical branches Online only at most banks Monthly fees Common, sometimes waived Usually none Minimum balance Often required Often $0 Account opening In person or online Mostly online, typically 10 to 15 minutes The National Average vs. High Yield Accounts The FDIC tracks what most banks actually pay, and the national average savings rate was just 0.39% APY as of March 2026.1 Many banks tied to physical branches still pay near that floor, and most savings accounts at the big chains basically do the same. High yield savings accounts are typically offered by online-only banks and many pay around 4% APY currently. The reason is simple: online banks don’t have those branch overhead costs and pass higher interest rates back to depositors at every high yield savings account they offer. For a fuller comparison between liquid cash and locked-rate options, our breakdown of a high yield savings account vs. a CD walks through the tradeoffs side by side. When Traditional Savings Accounts Still Make Sense Traditional savings accounts at brick-and-mortar banks earn their place when you actually use the branch. In-person cash deposits, notarized signatures, safe deposit boxes, and same-day cashier’s checks are easier to handle face to face. Some people prefer keeping a checking and savings account under one roof for easy access during a banking errand. They can also serve as a convenient holding place for short-term cash or funds you plan to move soon, since easy branch access and instant transfers can matter more than earning higher interest in those situations. Credit unions can fall in this bucket too. Credit unions sometimes pay higher interest rates than the big traditional banks. Even so, traditional savings accounts at the largest chains usually trail high yield options. However, for longer-term savings, traditional accounts at major banks generally earn significantly lower interest than high yield savings accounts. » Earn more on your savings: Explore top high-yield savings accounts today How Much Interest You Can Actually Earn So how much interest can a few thousand dollars actually earn in a high yield savings account? More than you might guess, but the math has two moving parts: the APY and the time your money sits at that rate. Annual Percentage Yield Explained APY (Annual Percentage Yield) is the rate that determines how much interest your savings earn over time, including compounding. One thing to keep in mind: a high yield savings account pays a variable rate that the bank can change at any time, which is different from fixed income products like CDs or Treasury bonds. With a CD or a Treasury bond you lock in a fixed interest rate for a set term, so you trade some flexibility for a known payout. A high yield savings account keeps your cash liquid and pays whatever the current rate is, while a CD or bond holds the rate fixed until maturity.  » Looking for a guaranteed income? Explore today’s top CD rates How Compounding Interest Builds Your Balance Compounding interest pays you on prior interest, not just the original deposit. On $5,000 earning 4% APY, the $200 in interest you collect in year one means year two starts on a $5,200 balance, so the next $200 in interest already builds on a bigger base. That snowball is what compounding pays for, and the gap over simple interest widens every year you leave the balance alone. Reinvesting interest is a way to make money grow without taking on stock market risk. This is especially useful when paired with investing, since keeping short-term cash in a high-yield savings account allows your investments to stay allocated in the market without pulling from them for short-term needs. For a closer look at where to invest beyond savings, explore the best brokerage accounts for building long-term wealth. Tying balances to specific savings goals helps your money grow faster because you stop dipping into the account for purchases that were not part of the plan. For more on options for cash you may need within a year or two, see our guide to the best places to park short term cash for the full picture on liquid alternatives. Steps to Open a High Yield Savings Account Opening a new savings account online is fast. Most applications take 10 to 15 minutes if you have your documents ready. Move through them in order and you will be earning higher interest rates on day one. Step 1 – Compare Accounts Start by comparing accounts on more than just the headline APY. Pull up at least three high yield savings accounts and put them side by side. Check the APY, monthly fees, the minimum deposit requirements to open, the minimum balance requirement to earn the top rate, and the withdrawal rules. Some banks pay the advertised APY only above a certain balance threshold, which is a quiet way to reduce earnings on smaller deposits. Many banks also charge monthly fees that erase the rate advantage entirely.  The goal is to find a high yield savings account where you avoid fees, hit no minimum balance trap, and still get top-tier interest rates. Our review of the best high-yield savings accounts for 2026 compares the leaders side by side, weighing APY against the fee structure each bank uses and the deposit requirements you’d run into. That makes it easier to spot which

What Is a High-Yield Savings Account?

What Is a High-Yield Savings Account? Most savers think every savings account works the same way, but they don’t. A high-yield savings account is a deposit account at an FDIC-insured bank or NCUA-insured credit union that pays a much better interest rate compared to a standard savings account. The product itself is the same. The yield is what changes. The U.S. Securities and Exchange Commission points out that some savers keep up to six months of income in savings to cover an emergency like sudden unemployment.1 A high-yield savings account is the perfect place to put that cash, you get a higher rate than a traditional account with the same safety and liquidity. » Earn more on your savings: Explore top high-yield savings accounts today How a High-Yield Savings Account Works The mechanics are simple. You deposit money, the bank pays you interest on the balance. Interest typically accrues daily and gets credited to your account once a month. That’s the basic idea behind a high-yield savings account. What changes between banks is the interest rate they offer and the minimum balance they need to get you that rate. Where Higher Interest Rates Come From Banks set high-yield savings APYs based on the federal funds rate, which is the rate banks charge each other for overnight lending. The Federal Reserve held the federal funds target range at 3.50% to 3.75% at its April 29, 2026 meeting.2 When the Fed moves on interest rates, your savings account feels it almost right away. Online banks and other financial institutions then quote an annual percentage yield on top of that rate, which means the interest rates you see today can change. Compounding Interest Explained Compounding interest means you earn interest on the interest you earn. Most high-yield accounts earn interest daily and pay monthly, so each payout grows your savings balance, and the next month’s interest is calculated on the larger balance. For example: $10,000 at 4% APY adds up to roughly $400 over a year if rates hold. Higher balances add up faster, since every dollar of interest earned starts working the next day. HYSAs vs. Traditional Savings Accounts Here’s where the math gets interesting. The FDIC reports that the national average savings rate is at just 0.39% as of its March 2026 update.3 Meanwhile, the best high-yield savings accounts are paying about 4% APY, a difference of about a factor of 10. That difference is the entire reason these accounts exist. Traditional banks like Chase, Wells Fargo, and Bank of America rely on physical branch networks and customer inertia, so they have less pressure to compete on interest rates. Online banks compete almost entirely on yield, which is how they offer higher interest rates than the brick-and-mortar competition just can’t match. What That Interest Rate Difference Actually Pays You Let’s run the dollars: $10,000 at the 0.39% national average pays you roughly $39 a year in interest. That same $10,000 earning 4% pays you $400. On a $25,000 balance, the difference is even bigger, about $903 a year. That’s more money that stays in your pocket, not the bank, and that interest works for goals like a big purchase or a home down payment.  Where to Find a High-Yield Savings Account Why do online banks pay more? They cut out the cost of running physical branches and pass the savings on in the form of higher rates. Three kinds of financial institutions offer up high-yield savings products: online-only banks, credit unions, and the online banking arms of larger brands like SoFi, Capital One, American Express, and Discover. All three can deliver accounts that far outpace your run-of-the-mill savings account at a main street bank. Online Banks Online banks operate without the traditional branch network. Ones like SoFi and Capital One 360, are the online divisions of major brands that got their start in lending or credit cards. You sign up online or in a mobile app, link an external bank account and transfer funds over. To compare top options when it comes to yield, fees, and features, take a read of InvestLane’s review of the best high-yield savings accounts for 2026. Credit Unions Credit unions aren’t FDIC insured, but that doesn’t mean accounts are uninsured. The National Credit Union Administration runs a parallel system that covers member accounts, up to $250,000 per member-owner per federally insured credit union per ownership category.4 Many credit unions offer high-yield savings products at competitive interest rates, sometimes combining higher interest rates with stronger relationship perks than online banks deliver. The APY posted on a credit union’s website is probably the closest thing to apples-to-apples comparison. » Boost your savings: Explore the best savings and CDs with Raisin Is It FDIC Insured? Safety Basics The Federal Deposit Insurance Corp, formally the FDIC, covers deposits at insured banks up to $250,000 per depositor, per FDIC-insured bank, per ownership category.5 That coverage starts automatically the moment you open the account. No application. No paperwork. The same deposit insurance applies to every member FDIC institution offering high-yield savings accounts, so you can shop around for a higher rate without compromising your safety. Single, joint, and retirement accounts each sit in a separate category. If you have a single account at $250,000 and a joint account with your spouse at $500,000 at the same bank, both balances are fully covered. If you split your deposits across different banks, that adds another layer of protection for your money. Bank failure is rare, and even when it happens, FDIC insurance has historically paid out to every covered depositor. A Low Risk Place for Short-Term Money A high-yield savings account is one of the best places to park your short-term cash. Your principal is insured, and the interest earned beats just about any traditional savings option out there. Most financial planners recommend keeping 3-6 months’ worth of living expenses in cash as an emergency fund, and a high-yield account lets you park that money safely while it earns a higher interest rate than you’d get

Spot Bitcoin and Ethereum ETF Buyer’s Guide for 2026

What Is a Bitcoin ETF? (and How Spot ETFs Work) A spot Bitcoin fund holds actual bitcoin and issues shares you can buy and sell on a normal stock exchange. Spot Ethereum funds work the same way with ether. So you skip the wallets, exchanges, and private keys, and you get to invest in cryptocurrency  through a brokerage account you probably already have. This fits the same core principles of ETF investing you already use for index funds. The fund handles custody, security, and the operational work of holding crypto. You hold shares, and the shares track the price of the underlying asset. Investment Objective: Tracking the Underlying Asset Every spot crypto fund in this guide shares the same goal. The fund objective is to reflect the performance of the underlying asset’s price, before fees and expenses. The investment objective for the iShares Bitcoin Trust ETF specifically states the fund “seeks to reflect generally the performance of the price of bitcoin.” Ether-focused funds have parallel investment objective language for ether. When bitcoin moves 5% on a given day, you’d expect the share price to move close to 5% as well, with small variations from fees. » Thinking to buy cryptocurrency? See the top crypto platforms today How Spot Crypto ETFs Hold Digital Assets and Are Regulated Spot Bitcoin and Ethereum ETFs hold digital assets directly, and the regulatory wrapper differs from what most ETF investors are used to. The U.S. Securities and Exchange Commission approved these funds on January 10, 2024, with strict disclosure requirements. The SEC was clear that approval was not an endorsement of bitcoin as an investment.1 Here’s the part you need to pay close attention to: These funds are not registered as investment companies under the Investment Company Act of 1940, and do not have the same regulatory requirements as mutual funds or ETFs registered under that act.2 The protections that come with being an investment company registered under that act do not all apply to spot crypto funds. The funds are structured as grantor trusts or similar pass-through vehicles, and each one trades as an exchange traded product on a major U.S. exchange. They are not commodity pools regulated under the Commodity Exchange Act either. A commodity pool would carry CFTC oversight that these spot funds do not. The fund’s prospectus spells out the structure and risks in detail. So the same regulatory requirements that apply to a typical equity ETF do not all apply to spot crypto funds. The SEC reviewed the disclosures, the listing exchange approved the listings, and the funds operate under their own investment programs. Some protections built into the rules for registered funds are simply not there. Best Spot Bitcoin ETFs for 2026 Four spot Bitcoin funds cover the bulk of investor money in this category. Here’s how they stack up against each other, sized against the largest ETFs in the market for context. iShares Bitcoin Trust ETF (IBIT) IBIT is the dominant fund in the category. As of May 2026, IBIT holds approximately $66.7 billion in net assets, more than five times the next-largest fund in the category, with a 0.25% sponsor fee.3 For every $10,000 invested, that 0.25% works out to $25 per year in fund expenses, taken from the trust’s bitcoin holdings. What stands out about IBIT is how sticky the money is. Even when bitcoin’s market price fell sharply during the first quarter of 2026, IBIT’s net assets held roughly flat while shares outstanding actually grew. Other ishares funds show similar institutional patterns, but IBIT’s market value at scale puts it in a league of its own. How Net Assets Compare Across the Funds Across the four Bitcoin funds, IBIT’s $66.7 billion lead is wide. FBTC sits second at $12.74 billion, followed by BITB at $3.15 billion. Net assets affect liquidity and the ability to handle large trades without slippage. Fidelity Wise Origin Bitcoin Fund (FBTC) FBTC is the second-largest fund in this lineup and Fidelity’s entry. As of Q1 2026, the fund holds about $12.74 billion in net assets across roughly 190,800 BTC. FBTC charges a 0.25% sponsor fee, and it is the only major spot Bitcoin product that custodies its bitcoin in-house, through Fidelity Digital Asset Services rather than Coinbase Custody.4 For Fidelity customers, FBTC slots cleanly into existing accounts. The in-house custody puts Fidelity in direct control of the bitcoin rather than leaving it with a third-party crypto custodian. Grayscale Bitcoin Mini Trust ETF (BTC) BTC is Grayscale’s value entry in the category. The fund charges a 0.15% management fee, the lowest among the major spot Bitcoin funds covered here, and trades as an exchange traded product.5 The math is simple, here is how it works: For every $10,000 invested, BTC’s 0.15% works out to $15 per year, against $25 for IBIT and FBTC. Over a long holding period, that 10 basis point gap compounds in your favor. The trade-off is size though, BTC is smaller and newer than IBIT, so trading volume and liquidity are lower. For cost-sensitive buyers planning to hold for years, the lower management fees can easily outweigh that disadvantage. Bitwise Bitcoin ETF (BITB) BITB is the specialist crypto firm entry, with a competitive 0.20% fee that sits between the major issuers and Grayscale’s BTC. Bitwise is a crypto-native asset manager, appealing to investors who want a fund run by a team focused entirely on digital assets. As of May 2026, BITB holds about $3.15 billion in net assets and 38,576 BTC, with Coinbase Custody Trust Company as the bitcoin custodian. The 30-day median bid-ask spread runs around 0.02%, in line with the larger funds. Best Spot Ethereum Trust ETF Picks Three spot ether trust ETF options cover most of the Ethereum side. Two have “Trust” in their formal names, while Grayscale’s mini ether fund uses “Staking Mini ETF” instead. iShares Ethereum Trust ETF (ETHA) ETHA is BlackRock’s Ethereum entry and the largest spot ether trust ETF. As of May 2026, the fund holds about $7.5 billion in net assets

The 3 Tax Buckets Every Investor Needs To Know

Why Tax Buckets Matter for Long-Term Wealth Most people focus on what they invest in and skip past where those dollars actually live. That gap costs investors real money over time. Two people can buy the same index fund, earn the same investment return, and walk away with very different totals depending on the account type. The three buckets each handle taxes differently. A taxable account hits you every year on dividends, interest, and realized capital gains. A tax deferred account skips taxes now and bills you later. A tax free account collects taxes upfront and stops asking after that. Pick the wrong bucket for a long term goal, and the tax drag compounds for decades. So before investing your money in the market, it helps to understand how each bucket treats your dollars and how it shapes your investment decision over a personal investment horizon that may span 30 or 40 years. Taxable vs Tax-Deferred vs Tax-Free Accounts The taxable vs tax deferred vs tax free framework comes down to one question: when do you pay the tax bill? A normal taxable investment pays the tax now, every year. The taxable tax deferred comparison is simple: you skip the tax bill now and pay income taxes on the back end at withdrawal. The taxable vs tax deferred timing flips again with the Roth. Tax free accounts collect tax upfront. You contribute after tax dollars, then everything that grows inside the account avoids future tax on qualified withdrawals. The investments grow tax free, the earnings grow tax free, and qualified retirement income exits without a tax bite. Each bucket fits different goals. Taxable accounts work for short-term cash and for investing money beyond retirement account limits. Tax deferred accounts shine later in your career when your current income tax bracket is high and your retirement bracket should be lower. Tax free accounts win when you have decades of compounding ahead. » Start investing today: Explore top brokerage accounts with our detailed review How Taxable Accounts Work Taxable accounts include brokerage accounts, high yield savings accounts, money market accounts, CDs, and most bond holdings. There are no contribution limits, no withdrawal restrictions, and no age gate. The price for that flexibility is an annual tax bill on dividends, interest, and any realized gains. Brokerage Accounts and Investment Taxes A brokerage account is where most investors first run into investment taxes. Long term capital gains, on assets held more than one year, are taxed at federal income tax rates of 0%, 15%, or 20% depending on your taxable income, while short term gains hit your ordinary income tax rate.1 Those federal income tax rates make holding period a meaningful tax decision that affects taxable income, and the choice of where to hold a taxable investment can change your annual income taxes by hundreds or thousands of dollars. Capital gains taxes also apply to dividends, and the type is important. Qualified dividends get the favorable long term capital gains rates, while ordinary dividends do not, and ordinary income taxes apply at your federal tax rate. Tax efficient investments like broad index funds and municipal bonds throw off less taxable income each year, which is why investment companies often place them in taxable accounts and steer income heavy holdings into tax advantaged investments. For a more detailed look at this strategy, see our list of investments to avoid in taxable accounts. High-Yield Savings Accounts and Money Market Accounts A high yield savings account and similar parking spots sit in the same bucket but serve a different purpose. They carry significantly lower risk than equity investment funds and are built for short term cash, not long term growth, which makes the personal investment horizon for these dollars short by design. Interest is taxed as ordinary income and reflect sales charges or fees do not apply. A top high yield account currently pays around 4% APY, while a traditional financial institution pay rate sits closer to 0.01%. On a $10,000 emergency fund, that difference works out to roughly $400 a year versus $1. » Earn more on your savings: Explore top high-yield savings accounts today Tax-Deferred Accounts and How They Build Wealth Tax deferred accounts include the traditional IRA, the 401(k), the 403(b), 457(b), SEP IRA, and SIMPLE IRA. The mechanic is the same across the family: you contribute pre tax dollars now, the money grows without annual taxes, and the account pays income taxes later. A tax deferred investment behaves differently from a normal taxable investment in one key way: time on your side without the annual tax drag, and that single change in tax deferred investment treatment is the engine. Withdrawals after age 59½ are taxed as ordinary income at the federal income tax rates in effect that year, which currently run from 10% to 37%.2 Whether the account beats a Roth comes down to your projected timeline and estimated marginal tax rate today versus when you’ll be in retirement. A side by side breakdown lives in our Roth IRA vs Traditional IRA comparison. How Tax Deduction Savings Compound The upfront tax deduction is the immediate tax benefit that makes tax deferred contributions attractive. Every dollar you contribute reduces your taxable income for the year, and that tax deduction stacks year after year. If your federal tax rate is 22%, contributing $7,500 returns $1,650 in tax deduction savings. Reinvest that saved cash, and your net contribution effectively matches your gross contribution, compounding alongside the original investment. The tax-deductible contribution lowers your current tax liability by reducing the income you pay taxes on today, in exchange for a tax bill later. This trade tends to favor investors whose retirement tax bracket is lower than their working-years bracket. Why You Should Increase Tax-Deferred Contribution Late in Your Career Late career earners typically sit in their highest income tax bracket of any working stage. Maxing or pushing to increase tax deferred contribution amounts during these years captures the largest possible deduction and shifts taxes to retirement, when

Backdoor Roth IRA Guide (2026 Update): How It Works

What Is a Backdoor Roth IRA? A backdoor Roth IRA is not a separate retirement account. It is a Roth IRA conversion strategy combining two very different legal moves: a nondeductible contribution into a traditional IRA account, followed by a Roth conversion into a Roth IRA. The strategy exists because Roth IRA contributions are limited by income, but there’s no cap on non-deductible contributions to traditional IRAs or on converting those to Roth’s. Take someone earning $300,000 a year. They can’t contribute directly to a Roth IRA because their income exceeds the limit. But they can legally fund a traditional IRA and move that money into a Roth IRA. Why the Backdoor Roth IRA Strategy Exists In 2010, the IRS removed a rule that had been restricting Roth conversions. This opened up what’s come to be known as the backdoor Roth IRA strategy. High earners were still locked out of direct Roth contributions, but the combination of a non-deductible traditional IRA and a Roth conversion suddenly became an option. Before you consider using this strategy, you should check the current Roth IRA income limits  to see if you need to go the backdoor route. » Ready to invest for retirement? Check out our review on the top IRA accounts Who Qualifies for a Backdoor Roth IRA? The backdoor Roth is perfect for people whose MAGI exceeds the Roth phase-out range. If you’re single and your 2026 adjusted gross income (AGI) is above $168,000, you won’t be able to contribute directly to a Roth IRA. If you’re married filing jointly and your AGI is above $252,000, you’re facing the same issue.1 Then there’s the eligibility test. You need to have earned income at least equal to the Roth IRA contribution amount, the ability to open a traditional IRA, and no existing pre tax SEP or SIMPLE IRAs balances that would complicate the strategy. Income Limits That Make the Backdoor Strategy Necessary For 2026, the Roth IRA income limits work like this: single filers phase out between $153,000 and $168,000, married filing jointly phases out between $242,000 and $252,000. And if you’re a married filing separately taxpayer who lived with your spouse, you’re looking at a phase-out range of $0 to $10,000.2  Once you clear these thresholds, direct Roth IRA contributions are no longer an option, and the backdoor becomes your next move. » Stay ahead of your finances: Join our free newsletters today How the Backdoor Roth IRA Process Works The backdoor Roth IRA process has two steps: a nondeductible IRA contribution through a traditional IRA, followed by a Roth conversion of that balance. Both steps have to be done right, and reported correctly on your tax return. The IRS has not published a mandatory waiting period, and most practitioners handle the conversion within days of the initial Roth IRA contribution to keep tax exposure to a minimum. What Happens in the Traditional IRA Contribution Step? The first step is to make a non-deductible contribution into a traditional IRA using money that’s already been taxed. For 2026, the IRA contribution limit is $7,500 for those under 50, or $8,600 with catch-up for those 50 and older. What you’re doing here is making a contribution using dollars that you’ve chosen to contribute to after tax. You’re not taking any tax deduction. You’ll need to open a traditional IRA at a brokerage before you can fund it, and this is a non-deductible contribution, not one of the deductible contributions you can make at lower income levels. You’ll also need to file Form 8606 to set up the basis on your tax return. Filing Form 8606 for the year of the non-deductible contribution is not optional. That’s how the IRS knows the money’s been taxed and shouldn’t be taxed again when converted.3 What Happens During the Roth Conversion Step? The second step is to shift funds from traditional IRA to a Roth IRA. Backdoor Roth conversions can be done through a trustee to trustee transfer or a 60-day rollover.4 The majority of people use the direct transfer method as it’s simpler to do. If a traditional IRA just holds a nondeductible amount then the conversion produces very little ordinary income and the converted funds then grow tax free. What Is the Pro Rata Rule and Why Is It So Important? The pro rata rule is the single biggest reason a backdoor Roth IRA can go completely sideways. Under this IRS rule, any Roth conversion is treated as coming proportionally from all traditional, SEP, and SIMPLE IRA balances, not from a specific contribution.5 It prevents cherry-picking from nondeductible basis while leaving large pre tax balances untouched. The math works like this. Someone with $93,000 of pre tax IRA balances plus a fresh $7,500 nondeductible contribution holds $100,500 in total IRA assets. If they convert the $7,500, roughly 92.5 percent becomes taxable income because 92.5 percent of the balance is pre tax. Only about $560 is treated as tax free return of basis. The other $6,940 gets taxed as ordinary income at the marginal tax rate, creating unexpected tax liability. How IRA Balances Affect the Pro Rata Calculation The pro rata rule bundles together all balances on December 31 of the conversion year. Traditional, SEP IRA, SIMPLE IRAs, and rollover balances all count toward the total, but Roth IRA and 401(k) balances do not.6 A person with no existing pre tax IRA balance has the cleanest setup, while deductible and nondeductible contributions get blended proportionally across every conversion until any pre tax balance is cleared. The 401(k) Workaround for Pro Rata Problems Rolling pre tax IRA balances into a current 401(k) or other workplace retirement plan removes those dollars from the aggregation. Once inside a 401(k), they no longer count toward the pro rata denominator, which is why people with large pre tax balances often roll them into a 401(k) before starting a backdoor Roth. Not every 401(k) plan accepts incoming rollovers. Plan rules vary, and the rollover must be completed before December 31 of the conversion

Lump Sum vs Dollar Cost Averaging | Which is Best?

What Is the Difference Between Lump Sum and Dollar Cost Averaging? Lump sum investing and dollar cost averaging are two different ways to put cash into the financial markets. Both have fans, and both are backed by research. With a lump sum investment, you simply take the entire amount you are going to invest and put it into the market all at once. You get full exposure on day one. With dollar cost averaging on the other hand, you break up that same amount into smaller pieces and invest it over weeks or months. The idea here is to smooth out the effect of fluctuating price levels and reduce timing risk. For example, let’s say you have $12,000 sitting in cash. A lump sum approach means investing all $12,000 today. A dollar cost averaging (DCA) approach might split it into a fixed amount of $1,000 a month for a year. Is Dollar Cost Averaging the Same as Investing From Every Paycheck? Not exactly. When you invest every time you get paid, available cash goes to work immediately. That is actually a series of small lump sum investments, not a true cost averaging strategy. The real comparison here only applies when you have a large sum of money sitting in cash and you are looking for ways to deploy it. » Start investing today: Explore top brokerage accounts with our detailed review What Are the Pros and Cons of Each Investment Strategy? Each investment strategy carries its own tradeoffs. Understanding them helps match the approach to your investment objectives and financial goals. Lump sum investing gives instant market exposure. No cash sits on the sideline. The downside is timing risk. If the market drops right after you invest, you feel the full hit. Dollar cost averaging reduces that short term volatility. By buying at different price levels, your average purchase price smooths out. There is a tradeoff though: you end up giving up potential gains while only a portion of your cash is working. Factor Lump Sum Investing Dollar Cost Averaging Market exposure Immediate Gradual Entry timing exposure Higher Lower Expected returns Higher on average Lower on average Stress during volatile markets Higher Lower Best for Long time horizon, higher risk tolerance Risk averse investors, bear market concerns For investors who lose sleep over market swings, DCA can act as a behavioral anchor. For those focused on maximum long term growth, lump sum investing tends to win. Why Does Time in the Market Beat Market Timing? This is at the heart of the whole debate. Markets tend to rise over time and cash sitting idle earns next to nothing while share prices climb. J.P. Morgan’s 2025 Guide to Retirement put real numbers on this. Missing the 10 best days of the market over the past 20 years would have cut a portfolio’s annualized return by almost 50%. Missing the top 40 days would have produced a negative annualized return.1 The trouble is that many of the best market days happen during rough patches. Pulling out during a downturn, even for a few weeks, can wreck long term results through extended periods of missed gains. See our breakdown of why trying to time the market could cost you thousands. What Happens When You Wait for the Right Market Entry Points? Charles Schwab ran a 20-year study ending in 2024 tracking five investors who each received $2,000 at the start of every year. Peter Perfect invested at the annual low. Ashley Action invested immediately. Matthew Monthly used dollar cost averaging. Rosie Rotten had the worst timing possible. Larry Linger held cash and kept waiting out the market volatility. The results were striking. Peter Perfect finished with $186,077. Ashley Action, who never tried to time anything, landed at $170,555. Larry Linger, who kept waiting for better market conditions, ended with just $47,357.2 Let that sink in for a minute. The investor with bad timing still crushed the one who held cash. Waiting indefinitely is the worst thing you can do in nearly every market cycle. What Does Historical Performance Say About Lump Sum vs Dollar Cost Averaging? Research from major firms lines up. Vanguard compared lump sum investing to dollar cost averaging across rolling periods from 1976 to 2022. As it turned out, the lump sum investment approach beat dollar cost averaging most of the time, with the gap getting bigger as the DCA periods stretched.3 The pattern held across asset allocations too. The bigger the equity stake in the portfolio, the bigger lump sum’s edge over DCA. The reason is the same one that drives the whole argument: stocks and bonds carry a risk premium over cash, and a lump sum approach holds less cash across the life of the investment, so it captures more of that premium. » Stay ahead of your finances: Join our free newsletters today When Does Dollar Cost Averaging Actually Win? Dollar cost averaging has a clear edge in one particular case: a sustained bear market. When the market fluctuates downward month after month, buying at lower prices pulls your average purchase price down. Consider a quick example. You invest $600 into a particular investment at $25 per share all at once. Your cost basis is $25. Now let’s say instead you bought $100 a month for six months while bond prices and stock prices fell. Your average share price might end up closer to $22.90. If the price now sits at $21.38, so that lump sum investor is down 14.48% while the DCA investor is only down 6.64%. Keep in mind though, historically, markets drop in fewer than 25% of 12-month periods. That leaves roughly 1-in-4 years where DCA could help, which is why it is not necessarily a bad strategy. The downside though: it tends to underperform during a rising market. Over the long term, markets have consistently trended upward, despite periods of short-term volatility and economic uncertainty. In declining markets, dollar cost averaging can feel safer than lump sum investing, as it spreads out entry

401(k) vs Roth IRA: Where Should You Invest First?

401(k) vs Roth IRA: Key Differences at a Glance Feature Traditional 401(k) Roth 401(k) Roth IRA Sponsored by Employer Employer Individual Annual contribution limits (under 50) $24,500 (combined with Roth 401k) $24,500 (combined with Traditional) $7,500 Catch-up contributions (age 50+) $8,000 $8,000 $1,100 Tax treatment Pre-tax in, taxable out After-tax in, tax-free out After-tax in, tax-free out Employer match / contributions Yes Yes No Income limits None None Phase-out: $153k–$168k (single) $242k–$252k (married) Required minimum distributions Yes — age 73 No (post-2024) No. Never for owner Investment options Employer plan menu Employer plan menu Broad. Stocks, ETFs, bonds, index funds Source: Internal Revenue Service, 2026 contribution limits. Annual Contribution Limits for IRAs and 401(k) Plans Starting in 2026, the higher contribution limits give retirement savers more room.1 The annual contribution limits for a 401(k), whether traditional or Roth 401(k), are $24,500 under age 50, with catch up contributions of $8,000 for those 50 and older. Those aged 60 to 63 get a special catch up of $11,250, the highest catch up contributions available across any retirement accounts.2  For a Roth IRA, the limit is $7,500 under age 50 and $8,600 for those 50 and older, with catch up contributions for IRAs at $1,100 for 2026. These limits are completely separate from 401(k) limits, so combined contributions across both account types can reach $32,000 per year for those under 50, and significantly more with catch up contributions for those 50 and older.3 What Is a 401(k)? A 401(k) is an employer-sponsored retirement plan where your contributions come directly out of your paycheck. A traditional 401(k) uses pre-tax contributions that reduce your taxable income in the year they’re made. The money grows through tax-deferred growth until withdrawal, at which point the IRS taxes distributions as ordinary income. A Roth 401(k), on the other hand, uses after-tax contributions, no upfront deduction, but tax-free withdrawals in retirement.  The real kicker is the employer match, when an employer offers matching contributions, it’s one of the most valuable benefits you can get. Here’s what that looks like in practice: say you earn $60,000 and your employer matches 50% of your contributions up to 6% of your salary. If you contribute that 6%, or $3,600, your employer adds another $1,800 on top. That turns $3,600 into $5,400 working for you on day one, before the market moves a single point. When you walk away from that free money, it’s one of the costliest moves a retirement saver can make. To get the most out of your 401(k) match, you’ll need to confirm with HR exactly how matching contributions are calculated before setting your contribution rate. Everyone’s plan is a little different, so confirming the match formula with HR is the very first step. What Is a Roth IRA? Contributing After-Tax Dollars to Grow Tax-Free A Roth IRA is an individual retirement account opened independently at a financial institution, not tied to a company. Unlike a traditional 401(k) or even a Roth 401(k), it’s not tied to an employer. Contributions go in with after tax dollars, so you won’t get a current year deduction on those dollars. But qualified withdrawals of both contributions and investment earnings are completely tax free after age 59½, once the five-year rule is met. Unlike a Roth 401(k) which is subject to employer plan rules, a Roth IRA has no required minimum distributions, sitting entirely outside the RMD system. A Roth IRA lets money stay invested as long as the owner wants, independently, which makes it a powerful complement for traditional 401(k) owners. Roth IRA contributions have income limits based on modified adjusted gross income. For 2026, single filers with MAGI above $168,000 are no longer allowed to contribute directly to a Roth IRA, and the phase-out starts at $153,000. For married couples filing jointly, income limits run from $242,000 to $252,000. Anyone who finds themselves facing these income restrictions would be wise to speak with a tax professional or a financial advisor who’s familiar with Roth conversion strategies to protect their retirement savings. With a Roth IRA, the options for investing your money are fairly broad; stocks, ETFs, index funds, bonds. If you’re looking for ideas on the best ETFs for a Roth IRA you’ll find plenty of low cost options at just about any brokerage.4 » Ready to invest for retirement? Check out our review on the top IRA accounts When to Prioritize the Roth IRA Younger Investors: After-Tax Contributions and Lower Income Limits For workers in their 20s and 30s, the biggest advantage isn’t the current tax bracket, it’s the runway. With decades of tax-free compounding ahead of you, giving up decades of tax-free growth by locking dollars into a tax-deferred 401(k) instead of a Roth account is a steep price to pay for a modest upfront deduction. Consider what that runway looks like in real numbers: $7,500 per year in a Roth IRA at a 10% average annual return compounds to around $3.3 million over 40 years, and all of it is completely tax-free in retirement. At this stage of life, the question isn’t really whether to pay a lower rate now versus a higher one later. The bracket math gets more interesting for workers closer to peak earning years later in your career, which comes up later in this article. For younger investors, though, after capturing the full employer match, putting dollars into Roth accounts, whether a Roth 401(k) or a Roth IRA, deserves the next priority for most. Building Tax Diversification for Retirement Income Having both a traditional 401(k) and a Roth account, whether it’s a Roth 401(k), Roth IRA, or both, is useful because it creates some real flexibility when you retire. When you pull money out of a traditional 401(k), every withdrawal adds to your taxable income. With a Roth account, though, tax-free withdrawals don’t count. Pulling from both buckets lets you manage your taxable income each year, which affects things like Social Security taxes, Medicare surcharges, and other income thresholds. This kind of tax-advantaged

Which Is the Best S&P 500 ETF? (VOO vs SPY vs SPYM vs IVV)

What Makes the S&P 500 the Core of So Many Portfolios? The S&P 500 is a stock market index that tracks roughly 500 of the largest publicly traded companies in the United States, covering about 80% of the total U.S. stock market by capitalization. Since 1957, the index has averaged just over 10% per year in total return, making it the benchmark that actively managed mutual funds and portfolio managers get measured against. Jack Bogle, the founder of Vanguard, helped create the first S&P 500 index fund for individual investors around a simple idea. His advice: “Don’t look for the needle in the haystack. Just buy the haystack.” Investing in low cost S&P 500 funds has since become the foundation of long-term portfolios across every account type, from tax-advantaged accounts to taxable accounts. Today, four exchange traded funds (ETFs) dominate S&P 500 investing: VOO, SPY, SPYM, and IVV. These ETFs all hold the same large cap stocks and track the same underlying index. For anyone looking to invest in the S&P 500, the differences come down to cost, liquidity, and structure. Once you are clear on these factors, deciding which fund to invest in becomes much simpler. » Start investing today: Explore top brokerage accounts with our detailed review What Factors Should You Focus on When Comparing S&P 500 ETFs? When it comes to comparing these ETFs, the key factors come down to basically three things: the expense ratio, the bid/ask spread, and how you plan on using the fund. The expense ratio is the annual fee these funds charge, and it’s deducted directly from your returns. For funds at 0.02% to 0.03%, the impact is minimal, and your returns will be very close to the S&P 500. But for funds at 0.0945%,  that starts to add up,  especially when you’re investing for the long term. And it’s even more of a difference when you compare that to other low-cost ETFs that track the exact same S&P 500. The bid/ask spread is the gap between what a buyer is willing to pay and what a seller will accept on the market. For long-term investors who buy and hold, the spread doesn’t really matter. But for active traders consistently buying and selling, a tight spread can save them a lot of money on every transaction. Understanding these factors will help you pick the right fund for your strategy. How Do VOO, SPY, SPYM, and IVV Compare? Here is a full side-by-side comparison using data as of March 31, 2026. Metric VOO SPY SPYM IVV Issuer Vanguard State Street (SSGA) State Street (SSGA) BlackRock / iShares Inception Date Sep 7, 2010 Jan 22, 1993 Nov 8, 2005 May 15, 2000 Expense Ratio 0.03% 0.0945% 0.02% 0.03% Assets Under Management (AUM) ~$885B ~$703B ~$133B ~$765B Avg Daily Share Volume (3mo) 10.5M shares 87.3M shares 16.7M shares 9.1M shares Bid/Ask Spread (30-day) 0.01% 0.00% 0.01% 0.00% Dividend Yield (TTM) 1.11% 1.05% 1.07% 1.15% 1-Year Return (as of 3/31/26) 17.67% 17.59% 17.73% 17.70% 5-Year Ann. Return (as of 3/31/26) 12.00% 11.90% 12.00% 12.00% 10-Year Ann. Return (as of 3/31/26) 14.11% 14.01% *Index changed 2020 14.12% Sources: Vanguard.com | ssga.com | ishares.com | InvestLane ETF Insights, updated April 17, 2026 Long-Term Performance of Top Index ETFs These index ETFs all track the same market benchmark so long-term performance figures are nearly identical. The small gaps in the 5 year and 10 year columns can be almost entirely attributed to the expense ratio. Every single basis point of annual cost adds up over the course of decades, compounding against anyone who holds for that long. SPY: The Original S&P 500 ETF Built for Traders SPY, the SPDR S&P 500 ETF trust from State Street, launched back in January 1993 as the first exchange traded fund to get listed in the United States.1 It averages 87.3 million shares per day with a 30-day bid/ask spread of essentially zero. That basically makes it the most widely traded equity ETF on the market Investors like SPY for a reason, it’s the go-to for active traders, institutions, and anyone who wants to use call options or derivatives on the S&P 500. When volatility spikes and spreads on other ETFs start getting wide, SPY’s spread stays put. That sort of consistent liquidity is important for people who regularly trade stocks and ETFs or need to move large positions quickly. How Does SPY’s Expense Ratio Affect Long-Term Returns? SPY charges 0.0945% per year, the highest expense ratio of the four funds. For active traders, that cost is justified by the liquidity advantage. However, for long-term investors in index funds who never touch their positions, it is dead weight compared to the other low cost options in this group. Let’s consider an example of just how big a difference the expense ratio can make in practice. Suppose you start with $1,000 and add $500 a month to an index fund over a long career – earning 10% a year. At SPY’s rate, you’d pay around $72,000 in total fees over 40 years. In contrast the same investor in SPYM at 0.02% would pay around $14,000. That’s $58,000 paid to a fund company just for owning the same 500 companies. Now compare both to an actively managed fund at 0.70%, and the fees total climbs to roughly $470,000 over the same period. The SPIVA scorecard shows that over 20-year periods, the majority of actively managed funds fail to outperform their benchmark index after fees.2 It’s no surprise then, that the whole passive investing idea has reshaped the fund industry. The math on fees is why index funds and low-cost ETFs keep taking market share from active mutual funds. » Stay ahead of your finances: Join our free newsletters today SPYM: The Lowest-Cost S&P 500 ETF SPYM, The SPDR portfolio S&P 500 ETF from State Street, is the low-cost alternative to SPY. They track the same S&P 500 index.3 The thing that sets them apart is who they are built for. The structure here is similar to

Best ETFs to Keep in Your IRA in Retirement

Why These Eight ETFs Belong in a Retirement IRA Most people spend decades putting money aside for retirement. What doesn’t get enough attention is what to do with those funds once you’re actually retired. The goal shifts from accumulating more savings to generating enough steady income to live on, protecting the value of your money and not running out of funds. That requires a different investment strategy. Growth-focused funds that aim for maximum upside can carry too much risk when you are drawing down your assets in retirement. And parking everything in bonds exposes you to the slow erosion of purchasing power over a long retirement. Inflation doesn’t magically stop once you retire. These eight funds cover every major asset class: stocks and bonds, dividend paying stocks, international stocks and even alternative assets like gold. Held inside a traditional or Roth IRA, dividends compound without the capital gains taxes eating into your returns each year. If you want a better idea of what creates tax drag in taxable accounts, our article on 5 Tax-Inefficient Investments to Avoid in Taxable Accounts might be worth a read. » Ready to invest for retirement? Check out our review on the top IRA accounts What Do the Best ETFs Need to Do in Retirement? Low Costs and Asset Allocation Matter More Than Most People Realize Low cost ETFs matter way more in retirement than during the accumulation phase. With no new contributions coming in, lower expense ratios can really add up. On a $500,000 portfolio held for 20 years, the difference between 0.03% and 0.75% can be tens of thousands of dollars in lost compounding. Low costs and low expenses are the bedrock, not a nice to have. Beyond fees, the best retirement ETFs provide built-in diversification across multiple asset classes. Individual securities carry concentration risk that’s just not there with a broadly diversified exchange traded fund. A single stock can get wiped out, and that can’t happen to a fund holding hundreds or thousands of holdings. The third thing to think about is the right asset allocation. Equity ETFs drive long term growth. Bond ETFs provide stability and steady income. Target date funds were popular because they are designed to rebalance automatically, but most of them come with higher expense ratios and less flexibility than building your own low cost index funds portfolio. A handful of well-chosen ETFs will outperform them on cost and control. Equity ETFs for Long-Term Growth VOO: Vanguard S&P 500 ETF – Core U.S. Growth Engine Every retirement portfolio still needs some equity exposure. Without it, inflation quietly erodes the real value of your retirement savings over time. VOO is a solution that comes with almost no cost. VOO tracks the S&P 500, which is an index covering about 500 of the largest publicly traded U.S. based companies.1 At over $1.4 trillion in net assets, a 0.03% expense ratio, and a 10-year average annual return of 14.78%, it’s the most cost-efficient way to own the long-term track record of the U.S. stock market. For broad S&P 500 exposure, some of the most popular ETFs include VOO, SPY, SPYM, and IVV. Dividend ETFs for Retirement Income SCHD: Schwab U.S. Dividend Equity ETF – Quality Income Built on Dividend Paying Stocks Where VOO is built for appreciation, SCHD is built for income. The fund tracks the Dow Jones U.S. Dividend 100 Index, which screens for companies with growing dividends and strong financial fundamentals, focusing specifically on the quality and sustainability of dividends rather than simply the highest yield.2 As of April 10, 2026, SCHD has around $85.76 billion in net assets, a 0.060% expense ratio, and an average annual return of 12.92% since it started out. If you check the top holdings, you will see Lockheed Martin, Chevron, and Coca-Cola. These are in sectors like financials, consumer staples, and industrials, which are less likely to overlap with VOO’s tech heavy portfolio. The idea behind SCHD in retirement investing is pretty simple: invest for growth when you’re young and then switch to income when you’re time to live off your savings. Well, for a lot of us, that time is now. According to Portfolio Visualizer, SCHD has a 0.44 correlation with the S&P 500 – it’s in the same direction, but it’s not going to move in lockstep, which is helpful in keeping the portfolio stable. If you want to take a closer look at some other dividend ETFs that you might want to hold alongside SCHD, then 6 Best Dividend ETFs to Buy & Hold Forever covers several strong options. » Earn more on your savings: Explore top high-yield savings accounts today Bond ETFs for Stability BND: Vanguard Total Bond Market ETF – The Low Risk Stability Anchor Bond ETFs serve as a shock absorber for your retirement portfolio. When the equity market tanks, bonds usually hold their value, or even go up, giving you the chance to ride out the downturn without panicking and selling. BND gives you that stability at the absolute lowest cost.3 With $387 billion in assets and a 0.03% expense ratio, BND is the cheapest way to get the whole U.S. Investment-Grade Bond market. Over the long run, the returns average 2.00%, and that’s on purpose. BND isn’t in the portfolio to make you rich. Its job is to protect your wealth, to give you some income when your other investments are under pressure, and hold its value when the market goes off a cliff.  According to Portfolio Visualizer, BND has a 0.36 correlation with the S&P 500, and GLDM has a -0.29 correlation, meaning gold tends to move in the opposite direction to U.S. stocks. That combination helps give the portfolio more stability during market downturns. Covered Call ETFs for Monthly Income JEPI: JPMorgan Equity Premium Income ETF – High Monthly Income for Lower Volatility JEPI generates income every month by selling covered call options on the S&P 500. The premium on those options gets stacked on top of regular dividend payments from stocks.

Ray Dalio’s All Weather Portfolio: Is It Right For You?

What Is Ray Dalio’s All Weather Portfolio? Ray Dalio’s All Weather portfolio was created in 1996 to manage his own family trust assets. According to Bridgewater Associates, the strategy rests on a straightforward idea: asset classes react in predictable ways based on the relationship of their cash flows to the economic environment.1 By balancing assets based on those structural tendencies, the impact of economic surprises can be minimized. The framework behind Ray Dalio’s all weather portfolio breaks the economy into four conditions: rising growth, falling growth, rising inflation, and falling inflation. These are the four economic seasons that Ray Dalio built the strategy around. Each environment tends to favor certain assets and punish others. Commodities and gold typically do well in inflationary periods. Bonds tend to perform during falling growth or deflation. Stocks thrive in periods of rising economic growth. The portfolio aims to have exposure to all four at once, covering all the major economic scenarios, a deliberate design that spreads assets across different economic outcomes. Ray Dalio has famously said that “diversifying well is the most important thing you need to do in order to invest well.” He’s also noted that trying to time the stock market is harder than competing in the Olympics. That’s exactly why the All Weather portfolio was built to handle whatever the future holds, rather than betting on any one outcome. How Does the Risk Parity Strategy Work? The all weather approach targets equal risk contribution from each type of asset, calculated based on each asset class’s volatility and correlation to the others. That’s the reason the bond allocation in Dalio’s all weather portfolio looks so heavy at 55% total. Long-duration bonds are far less volatile than stocks on a dollar-for-dollar basis, so more capital is needed to make bonds contribute equal risk. The Sharpe ratio measures return per unit of risk. Ray Dalio used it to evaluate whether adding two assets to a portfolio improves risk-adjusted return without sacrificing excess return. When the Sharpe ratio of the combined portfolio exceeds either asset alone, the asset allocation is doing its job. By selecting assets with low correlation, Dalio found he could raise the Sharpe ratio while keeping portfolio value more stable. Think of it this way: when the stock market drops, bonds often hold or rise. When inflation spikes, commodities gain. Adding more uncorrelated assets lowers the chance of everything falling at once, which is the core goal of the risk parity approach. Decades of refinement at Bridgewater Associates produced a framework that institutional investors worldwide use as a foundation for asset allocation. What Are the Top ETFs for the All Weather Portfolio? Building this portfolio is straightforward. Five ETFs cover everything, and any standard brokerage account will do. Each represents one of the different asset classes Ray Dalio identified as essential for all-weather coverage. Asset Type Ticker Allocation AUM Expense Ratio 10-Year Return S&P 500 Correlation U.S. Stocks VTI 30% $586B 0.03% 15.11% 1.00 Long-Term Bonds VGLT 40% $11B 0.03% -0.56% -0.03 Intermediate Bonds BIV 15% $29B 0.03% 2.29% 0.26 Gold GLD / GLDM 7.5% $185B 0.40% / 0.10% 15.08% 0.10 Commodities DBC 7.5% $1.5B 0.82% 8.49% 0.44 Data sourced from our Free Index Fund Cheatsheet | Data as of March 3rd, 2026 What Does VTI Bring to the Portfolio? The U.S. stock sleeve at 30% goes to the Vanguard Total Market ETF, VTI. It’s the fourth largest ETF in the market, with $586B in assets spread across over 3,500 U.S. companies.2 The fund carries a 0.03% expense ratio, has averaged 15.11% annually over the past 10 years, and has a near-perfect 1.00 correlation with the S&P 500. For those already familiar with the best ETFs to hold long-term, VTI needs little introduction. It pays a 1.11% dividend yield on a quarterly basis. What About the Long-Term and Intermediate Bond Positions? The bond exposure here is where Ray Dalio’s all weather portfolio earns its stability reputation and its biggest criticism. VGLT, the Vanguard Long-Term Treasury ETF, takes 40% of the portfolio. The fund has $11B in assets, a 0.03% expense ratio, and a dividend yield of 4.35% paid monthly.3 Over the past 10 years, it has averaged -0.56% annually, dividends reinvested. A popular alternative is TLT from iShares, with $45B in assets, a 0.15% expense ratio, and a -1.09% 10-year average. For the intermediate-term bond sleeve at 15%, which covers the intermediate term portion of the yield curve,, BIV from Vanguard holds over 2,300 bonds, carries a 0.03% expense ratio, and yields around 4% annually on a monthly basis.4 Its 10-year average return is 2.29%, with a 0.26 correlation to the S&P 500. An alternative is IEF from iShares, which averaged 0.91% over the same period. Both the intermediate bonds and long-term bonds serve the same structural purpose: low or negative correlation to equities. During market downturns, that correlation gap is what prevents the all weather portfolio from falling as hard as a straight equity portfolio would. What Role Do Gold and Commodities Play? Gold’s 7.5% allocation typically goes through GLD, the SPDR Gold Shares ETF, with $185B in assets and a 15.08% 10-year average return. Long-term holders often prefer GLDM for its 0.10% expense ratio versus GLD’s 0.40%. Hard assets like gold serve as the inflation hedge that most standard portfolios leave out entirely. Gold’s 0.10 correlation to the S&P 500 is what makes it valuable here. During financial market stress, it tends to hold up when stocks don’t. Commodities at 7.5% are typically handled by DBC, the Invesco DB Commodity Index Tracking Fund, which carries a 0.82% expense ratio and has averaged 8.49% annually over 10 years. It pays a 2.88% annual dividend and has a 0.44 correlation to the S&P 500. A higher-cost alternative is USCI, which averaged 7.92% over the same 10 years at a 1.16% expense ratio and holds 29 assets. Both provide coverage when stocks and bonds both struggle during periods of rising inflation simultaneously. What Are the Pros of the All Weather Portfolio? First, let’s take

Stocks Rally but a Tenuous Ceasefire and High Inflation Loom

U.S. stocks had a strong week on the belief that a resolution to the conflict in Iran might be near. But it’s the impact of the war that’s becoming the bigger story. We’re beginning to see sharp increases in inflation on both the consumer and business sides. With the negotiated ceasefire in Iran looking more fragile by the day, market anxiety remains high. Tip of the Week If you’re concerned about market volatility, high yield savings accounts and short duration Treasury bills offer competitive yields while you sit on the sidelines. These products can be a simple way to earn low risk income while maintaining flexibility. This can be especially important as the markets continue to navigate the current economic and geopolitical uncertainty. » Earn more on your savings: Explore top high-yield savings accounts today Market Moves Weekly Market Snapshot: S&P 500: +3.6% – stocks enjoyed a relief rally on the ceasefire agreement in Iran, but still remain a risky proposition as inflation rates are starting to soar. Nasdaq 100: +4.4% – this past week had a definite risk-on feel to it as tech and growth stocks returned to provide leadership. Russell 2000: +4.0% – stocks moved broadly higher, but the higher sensitivity of small-caps to current economic and political risks remains a concern. VIX: 19.3 – market volatility dropped to its lowest level in 7 weeks as the Iran ceasefire helped stabilize both stocks and bonds. Gold: +1.8% – precious metals continued moving higher as lower interest rates and a weaker dollar provided a boost. 10-Year Treasury Yield: 4.32% – interest rates showed signs of evening out, but the sharp increase in inflation runs the risk of pushing them higher again. Drivers: On one hand, investors enjoyed at least some temporary relief from the Iran conflict. On the other hand, damage to the global economy is already being done. Inflation in the U.S. jumped to its highest level in two years while corporations have indicated a slowdown in activity due to rising input costs. Even though the U.S. economy is still in relatively good shape and corporate earnings growth is strong, the Iran war is going to drive financial market performance for the foreseeable future. Economic Highlights A couple of the notable themes that stood out this week: The non-Ceasefire Ceasefire The markets staged a huge relief rally after a last minute 2-week ceasefire was announced following President Trump’s threat that a “whole civilization will die“. Stocks prices took off, bonds rallied, and oil prices dove. Brent crude is back to trading below $100/barrel and seems to be holding that level. But Israel’s subsequent attack on Lebanon and Iran’s targeting of the East-West pipeline strongly suggest that this isn’t a firm ceasefire likely to hold up. And the Strait of Hormuz is still effectively closed. The markets may have rallied on optimism, but the post-ceasefire events demonstrate that not a lot has changed. Energy prices are likely to remain high. Inflation rates should be expected to keep trending upward. Corporate activity is probably going to show signs of slowing down. All of these are direct impacts of the conflict. Until a detailed ceasefire agreement is formally agreed to and followed by all parties involved, the markets are unlikely to keep any rally sustained. » Start investing today: Explore top brokerage accounts with our detailed review Iran War Triggers Huge Inflation Surge The March inflation report was going to be among the first to detail the tangible impact of the unrest in the Middle East. And it delivered as expected. The consumer price index (CPI) rose by 0.9% month-over-month, the biggest one-month jump since June 2022. The annualized rate climbed all the way to 3.3%, its highest level in nearly two years. Given that the core inflation rate jumped only 0.2%, this increase in prices was almost entirely attributable to rising energy prices.1 Sticky inflation has been an ongoing issue even in the aftermath of the COVID recession. Rate cuts already seemed unlikely this year even before what’s happened in the Middle East. This CPI report could make it almost impossible for the Fed to lower rates, although it still appears to be on the radar for 2026.2 More importantly, this raises the chances that the U.S. economy gets stuck in a stagflationary spiral, one of the worst possible environments. The combination of low growth and high inflation makes it challenging for the Fed to provide much help and could take years to pull out of. » Ready to invest for retirement? Check out our review on the top IRA accounts Inflationary Pressures Start to Slow Business Activity On the surface, the ISM Services PMI report for March looks positive. The reading of 54 marks the 21st consecutive month this sector of the economy has been expanding.3 Beneath the surface, however, there are some causes for concern. The business activity and employment sub-components of the report showed significant declines. The price index also rose to its highest level since October 2022, reflecting the higher costs of fuel and shipping. The slowing down in hiring is something that we’ve been watching in the entire economy for months. It sounds repetitive to say it at this point, but higher prices and slower business activity are the result of events in the Middle East. Giving it a positive spin, geopolitical events tend to be shorter-term in nature and the Iran war could end at any time. When that happens, conditions should return to their pre-war state relatively quickly, although the lag of damage already done could take time. » Want to research further on your own? ​Explore our top financial tools and resources now U.S. Consumer Sentiment Hits Lowest Level in More Than 70 Years The University of Michigan’s index of consumer sentiment continue to dive to lows the report has never seen. In March, the index hit an all-time low of 47.6, beating the previous record from mid-2022.4 This report was first launched in 1946. Consumer spending levels continue to hold

How Many ETFs Do You Actually Need To Build Wealth?

Exchange Traded Funds (ETFs) Have Changed How People Invest ETFs have grown at an incredible rate since they first became publicly available in the U.S. back in 1993. A record $1.1 trillion in net new ETF shares were issued in 2024 alone, according to the Investment Company Institute, up from $597 billion the previous year.1 That growth has led millions of ETF investors to build portfolios full of tickers, operating on a simple assumption: the more exchange traded funds (ETFs) you own, the more diversified you are. In most cases, that assumption is simply wrong. At InvestLane, we’ve been covering exchange-traded funds in depth because they’re one of the most accessible tools for everyday investors. Unlike mutual funds, ETFs trade on a stock exchange throughout the day, with their market price updating in real-time. That means ETF shares can trade at market prices that may or may not match the fund’s net asset value, while mutual fund shares only get priced once a day.2 That accessibility makes ETFs super easy to buy and also easy to over-accumulate. In this article, we cover what most investors get wrong, the ideal ETF count for most situations, when adding more makes sense, and real portfolio examples. What Do Most Investors Get Wrong With ETFs and Mutual Funds? Is Owning More ETFs the Same as Better Diversification? The most common mistake ETF investors make is assuming that more tickers equals better diversification. But buying more ETFs without checking what’s inside creates overlap, not diversification. Here’s a path that plays out all the time. An investor follows Warren Buffett’s advice and buys VOO, Vanguard’s S&P 500 ETF. That’s a solid start, right? Then they add VTI for small and mid-cap exposure. Now they own two Vanguard ETFs and feel more diversified. The problem is that VOO and VTI have roughly 88% overlap by weight. ETFs compared on an overlap basis will usually reveal redundancy far more clearly than looking at expense ratios or net asset value alone. » Stay ahead of your finances: Join our free newsletters today How Do Index ETFs End Up Holding the Same Stocks as Actively Managed Funds? Over time, that investor might add VUG for growth, then VGT for tech. Now there are four Vanguard ETFs in the portfolio, each with its own ETF’s portfolio of underlying investments. But the top positions across all four are the same: Nvidia, Apple, and Microsoft. In the growth and technology-focused funds, those three make up well over 40% of the weight. That’s not diversification across asset classes, it’s a concentrated bet on US large-cap tech made four times over. That’s where correlation comes in. Assets with a correlation near +1 pretty much move identically. Most ETFs in this large-cap category move together, so much that broad market funds tracking similar benchmarks showed this clearly in 2008 and again during the dot-com period. When the market’s going down, highly correlated funds don’t deliver the protection investors expect. What matters isn’t the investment strategy so much as what the funds actually do. Investing involves risk, and knowing what you own is the first step toward managing it. How Many ETFs Do Most Investors Actually Need? Could One ETF Be Enough? For a long-term investor with their finances in order and a time horizon running into five years plus, a single broad ETF might be all they need. A fund like VTI or VOO gives you instant exposure to hundreds of stocks across every major sector of the U.S. economy in a single, easy purchase through your standard brokerage account or IRA. No need to hire a portfolio manager or wade through the complexity of actively managed mutual funds. Warren Buffett put his money where his mouth is by betting $1 million that a single S&P 500 index fund would outdo five hand-picked hedge funds over ten years. In his 2017 Berkshire Hathaway shareholder letter, Buffett reported that the index fund delivered a total gain of 125.8% over that decade, while the five actively managed funds returned anywhere from 2.8% to 87.7% after fees. Not one of them came close to the index fund’s 125.8%.3 That makes a pretty strong case for keeping things simple. What ETFs Fit Most Long-Term Investment Strategy Goals? If you’re looking for a bit more coverage, three to five ETFs is a good sweet spot. A core broad equity ETF, one or two tilts towards other asset classes, and possibly one low-correlation diversifier, that’s about what everyday investors actually need. Once you get past the five ETF mark, each new addition needs a clear purpose. If you can’t clearly see what unique value this fund adds to your portfolio, it’s probably best to skip it. InvestLane’s lazy ETF portfolio is a good example of how five funds can cover some wide ground without unnecessary overlap. When Does It Actually Make Sense to Add More ETFs? What ETFs Fill Genuine Gaps in a Portfolio? The secret is identifying what the core fund is actually missing. Adding VTI to an existing VOO position is not exactly going to fill any gap, after all, they have an 88% overlap. A real gap-filler addresses something the core ETF just can’t touch. For someone holding an S&P 500 ETF, genuine additions include a small-cap value fund like AVUV, which targets smaller companies with different return characteristics. Or a mid-cap fund for that middle tier. International developed markets are another real gap, since most domestic equity ETFs don’t hold any foreign stocks at all. And then there’s VT, which covers both U.S. and international stocks with over 10,000 holdings in a single fund, that’s a complete equity strategy on its own, but between VT and VTI there is a 59% overlap by weight. When Do Bond ETFs and Actively Managed Funds Belong in a Portfolio? Gold ETFs like GLD or GLDM and Bitcoin ETFs like IBIT behave in a totally different way to U.S. stock market funds. They don’t move in lockstep with the S&P 500, which

What Is the 4% Retirement Rule?

Where Did the 4% Rule Come From? The rule traces back to a financial advisor by the name of Bill Bengen, who published his findings in the October 1994 issue of the Journal of Financial Planning. Bengen tested hypothetical portfolios of large cap stocks and intermediate-term government bonds across every 30-year retirement window from 1926 onward, including periods that included the Great Depression and the stagflation of the 1970s. His conclusion: a 4% initial withdrawal rate survived even the worst historical sequences.1 The Trinity Study followed in 1998, independently confirming Bengen’s work. Researchers tested withdrawal rates across rolling 30-year periods and found that a 4% rate succeeded in the vast majority of scenarios for portfolios with 50–75% in equities. What Does the Initial Withdrawal Rate Actually Mean? The rate of initial withdrawal is the percentage pulled from the portfolio in year one of retirement. After that, it’s a fixed-dollar amount adjusted for inflation annually, not a percentage recalculated against the market’s current conditions. This is the part many people miss. If markets drop 20% in year two, the withdrawal doesn’t shrink with the portfolio. That’s both the strength of the rule (predictable retirement income) and one of its key risks (spending can outpace recovery). » Earn more on your savings: Explore top high-yield savings accounts today How to Use the 4% Rule to Plan Your Retirement Income Before worrying about a withdrawal plan, it helps to know your target savings amount. The Rule of 25 and Your Retirement Savings Target The Rule of 25 is the flip side of the 4% rule. Multiply the annual retirement income needed from the portfolio by 25, and the result will be your approximate retirement savings target. If your goal is withdrawing $60,000 per year from your portfolio, that means you take $60,000 x 25 = $1,500,000. But if Social Security benefits cover $24,000 of that, then the portfolio only needs to produce $36,000, dropping the target to $900,000. Other income sources like pensions or part-time work will reduce the number further. How Retirement Account Type Affects Your Spending Plan Not all retirement funds are treated the same at tax time. Traditional IRAs and 401(k)s are funded with pre-tax dollars, which means every withdrawal is taxable as ordinary income. Roth IRAs, on the other hand, work the opposite way. They offer tax-free withdrawals during your retirement since contributions were already taxed. There’s also the issue of required minimum distributions (RMDs). The IRS requires traditional IRA and 401(k) owners to begin taking withdrawals at age 73, whether they need the money or not.2 Those mandatory withdrawals count as taxable income and can affect tax rates, Medicare surcharges, and how much of Social Security benefits gets taxed. For a side-by-side look at the best retirement account options for different situations, see this breakdown of the best IRA accounts for 2026. What Are the Risks of the 4% Rule? The rule was built on historical data and specific assumptions. The further a person’s situation drifts from those assumptions, the more the risk picture changes. How Life Expectancy and Longevity Risk Play a Role Bengen’s original research was built around a 30-year retirement horizon. That made sense when the typical retirement age was 65 and life expectancy was shorter. Today, according to SSA actuarial data, a 65-year-old has a reasonable chance of living into their late 80s or beyond, and many retirees make it well into their 90s.3 Someone retiring at 60 may need their retirement savings to last 35 years or more. That’s a significantly different scenario than the one the 4% rule was designed around, and it’s one of the biggest reasons longevity risk deserves a close look in any retirement plan. Market Downturns and Sequence of Returns Risk Sequence of returns risk is the risk that poor market conditions early in retirement, even temporarily, can permanently damage a portfolio. Two people with identical long-run average returns can end up with dramatically different outcomes depending on when those returns occurred. Let’s take two retirees, each with $1,000,000 and each averaging 7% annually over 30 years. One retires into a strong bull market early on and a bear market late. The other faces market downturns in years 1 through 3. The second retiree, forced to sell assets at depressed prices to fund annual withdrawals, will run out of money years before the first. The long-run average return looks the same on paper. The retirement income outcomes couldn’t be more different. Rising Costs, Inflation, and Medical Expenses Inflation adjustments built into the 4% rule assume a relatively steady rate of price increases. The 2021–2022 inflation spike, where CPI hit multi-decade highs, showed what happens when that assumption breaks down.4 A retiree using the 4% rule would have been forced to sharply increase withdrawals during that stretch, accelerating the drawdown of their portfolio. Medical expenses add another layer. Healthcare costs have consistently outpaced general inflation for retirees, making it one of the harder categories to budget for in a rigid spending plan. Are Current Market Conditions Changing the Rule? What Historical Data Tells Us About Future Performance The 4% rule held up across some of the worst stretches in U.S. market history. That’s reassuring, but it doesn’t mean the next 30 years will look like the last hundred. Some financial researchers have noted that starting equity valuations today are meaningfully higher than historical averages, which can point to lower forward returns over the following decade. Higher starting valuations are particularly important for a withdrawal strategy that depends on the first 5–10 retirement years to set the trajectory. How Market Fluctuations Affect Portfolio Balance A balanced portfolio of stocks and bonds has historically provided the stability needed to support the 4% rule. Bonds will cushion the downside when stocks fall, giving the equity portion time to recover before too much of the portfolio is sold. When bond yields are low, that cushion gets thinner.  Market fluctuations hit harder when fixed income isn’t generating meaningful returns. Retirees who rely on a

Stocks Rebound, but Oil and Inflation Risks Keep the Pressure On

U.S. stocks staged a relief rally last week on the hopes that the Iran war could come to a conclusion sooner rather than later. President Trump, however, in an address to the nation suggested that there are still at least weeks to go. Volatility in oil prices and inflation remain the key factors driving the markets. But a higher-than-expected jobs report on Friday adds as many questions as answers to the labor market picture. Tip of the Week If you are keeping cash on the sidelines while oil prices and inflation worries are pushing rates around, a high yield savings account or short-term CD can help you earn meaningful income without taking on significant risk. It’s not exciting, but in volatile markets, it can be useful. » Earn more on your savings: Explore top high-yield savings accounts today Market Moves Weekly Market Snapshot: S&P 500: +3.4% – despite the uncertain messaging coming out of Trump’s national address, investors returned to risk assets with the belief that equities have fallen enough for the time being. Nasdaq 100: +3.9% – the recent correction in tech stocks has brought valuations back to reasonable levels and may be making the sector a compelling buy again. Russell 2000: +3.4% – small-caps finally kept up with the broader market; easing interest rates helped stocks more vulnerable to rate risk. VIX: 23.9 – a reading in the mid-20s still indicates heightened anxiety, but sentiment was definitely less fearful than it has been in recent weeks. Gold: +4.0% – when buyers return to stocks, bonds, and gold at the same time, it’s an indicator that inflation fears are subsiding (at least for the time being). 10-Year Treasury Yield: 4.31% – even as oil prices remain near multi-year highs, investors acted as if the end to the Iran war might be in sight. Drivers: Investors moved back into stocks, bonds, and precious metals as if the Iran conflict is nearing a resolution. We didn’t get a lot of evidence of this and it appears that tensions are still escalating without a definite exit strategy. With the S&P 500 declining by 9% at one point, it’s not unusual to see investors taking any sliver of hope as a reason to be buyers. I’d expect stocks will remain volatile for a while longer yet and further downside risk is still real. We won’t know until next week how the markets will react to Friday’s jobs report. My guess is that it’s another signal that inflation risk is still high. Economic Highlights A couple of the notable themes that stood out this week: Trump Signals No End to the Iran War in National Address When President Trump announced that he was going to address the nation regarding the war in Iran, the initial reaction was bullish. The markets anticipated a possible exit plan or at least a timeline for how long the conflict would last. Instead, there was no timeline. There was just the indication that it would be “weeks” if not longer. Stock futures dropped in the aftermath of the speech and spent the rest of the week moving in a volatile fashion. The biggest threat to the economy will be what it does to inflation. The March inflation report will drop next week and it’s expected to come in at 0.9% month-over-month.1 This would be the biggest monthly increase since 2022, owing mostly to rising energy prices. Stock prices can rise, especially in the current environment where they’re being supported by double-digit earnings growth. If the current conflict does last at least a few more weeks, it seems possible if not likely that inflation could hit 4% and gas prices at the pump could average $4.50 nationally. » Start investing today: Explore top brokerage accounts with our detailed review Jobs Report Delivers Good & Bad News Last Friday’s all-important non-farm payrolls delivered a number that market was hoping to hear. But it came with a caveat. In March, the U.S. economy added 178,000 jobs, the biggest monthly gain since December 2024.2 On the other hand, the February number was revised lower from a loss of 92,000 jobs to a loss of 133,000. It continues a trend going back well over a year where monthly payroll numbers get revised lower as more data comes in. While the March number was a positive, the non-farm payroll report isn’t giving us a sense of direction. Four of the past six months have reported a change of at least 133,000 jobs in one direction or the other. Since the beginning of 2025, the monthly figure has been positive in 9 months and negative in 6 months. This type of whipsaw up and down action doesn’t really confirm an expansion or contraction. The one thing we do know at this point is that job growth isn’t nearly as strong as it has been over the past few years. The more important signal could come from the JOLTS job openings report. It’s showing the number of jobs available back down to post-COVID pandemic levels.3 This signals a lack of labor demand from employers that could be a broader sign of weakness. » Thinking to buy cryptocurrency? See the top crypto platforms today Retail Sales Rebound in Sign of Strength Despite the concerns about inflation, high prices, and affordability, consumers still seem to be in a spending mood. In February, U.S. retail sales shot higher by 0.6% month-over-month.4 That breaks a string of reports going back to September that showed consumer activity had stagnated. There may not be a whole lot to read into with this report. For one thing, the number is lagged by a month compared to other economic data. Second, this report hasn’t really signaled a sharp contraction in consumer activity since the COVID pandemic. For all we hear about consumers broadly tightening up their wallets, we’re still just not seeing it in the data. Granted, the K-shaped economy means that the pain is being experienced in the bottom half while the top

Index Fund Investing For Beginners

What Is an Index Fund? Why Thinking of It Like a Grocery Receipt Actually Helps Think of a grocery receipt. It lists everything in the cart, chicken, rice, bananas, each at its own price, and at the end there’s one total. Nobody goes to the store and buys 50 items one at a time from 50 different registers. And nobody blows the whole budget on bananas. The goal is variety, all wrapped up in one trip. That’s essentially how index fund investing works. Instead of buying dozens of individual stocks separately, you can just buy a single index fund that bundles a collection of investments, usually stocks or bonds, into one purchase. You’ll then get instant exposure to a broad slice of the financial markets without having to pick and manage everything yourself. How Do Index Funds Work? The S&P 500 is probably the best-known example. It follows 500 of the biggest publicly traded companies in the U.S. and is often used as a snapshot of the overall market. When you buy an S&P 500 index fund, you’re getting a slice of companies like Apple, Microsoft, Nvidia, and hundreds more, all in one transaction. Most index funds use a market capitalization weighted index structure. That means larger companies carry more weight inside the fund. It’s also why the top 10 portfolio holdings in something like VOO make up close to 40% of its total value. Another major benchmark worth knowing is the Dow Jones Industrial Average, which tracks 30 large U.S. companies and has been around for over a century. These market indexes give investors and analysts a quick read on how the broader stock market is doing. Because index funds are passively managed, no fund manager is sitting there making daily buy and sell calls. The funds track market indexes automatically, which is a big part of why they stay so inexpensive to own. » Start investing today: Explore top brokerage accounts with our detailed review What’s the Difference Between an ETF and a Mutual Fund? An index fund can come in either a mutual fund or ETF structure. Both can track the same index, but they work a little differently. Index ETFs trade throughout the day on stock exchanges, just like individual stocks. They’re available on pretty much any investing platform, tend to have no minimum investment requirement, and are generally more tax efficient because of how they handle redemptions. Tickers are usually three or four letters, like VOO. Index mutual funds only trade once per day, at market close. Many require going through the mutual fund company’s own brokerage to avoid extra transaction fees, and some carry a minimum investment to get started. Tickers are typically five letters, like VFIAX. Both VOO and VFIAX track the S&P 500, but one’s an ETF and the other is a mutual fund. For most beginners, index ETFs offer more flexibility and better tax efficiency. The distinction is a lot more important than people realize, especially in taxable investment accounts. For a closer look at the tax side of things, this breakdown of ETFs vs. mutual funds is worth a read. How Does Diversification Cut Risk? Here’s a simple way to see why diversification makes such a big difference. Put $10,000 into two stocks, $5,000 each. One company goes under. The stock values in that position go to zero, and the portfolio is down to $5,000 instantly. Now put that same $10,000 into an S&P 500 index fund with 500 holdings. One company collapses. The hit is spread across all 500 positions, and the portfolio barely moves. That’s how many index funds provide exposure to hundreds of companies while limiting the damage any single bad bet can do. A broadly diversified index fund doesn’t guarantee gains, but it does make catastrophic losses much harder to hit. Why Do Index Funds Beat Actively Managed Funds? The Cost of Owning an Actively Managed Fund The annual cost of owning a fund is called the expense ratio. It comes out of the fund automatically over time, investors never write a check for it. For a passively managed fund like VOO, the expense ratio is 0.03%. That’s $3 a year on a $10,000 investment. Data from Charles Schwab puts the average passively managed mutual fund at a 0.05% expense ratio, compared to 0.76% for actively managed mutual funds.1 That gap might look tiny on paper, but run the numbers and they tell a different story. Two investors, same $1,000 monthly contribution, same 10% average annual return, same 30-year window. The one in the passive fund ends up around $2 million and pays roughly $18,000 in total fees. The one in the actively managed fund lands closer to $1.7 million, having paid about $263,000 in fees. That’s nearly $250,000 lost to costs, and it happens year after year, without most people noticing until it’s too late. » Stay ahead of your finances: Join our free newsletters today Do Actively Managed Funds Actually Beat the Market? Here’s what most people assume: professionals running actively managed investments must produce better returns than a passive index fund, otherwise why pay for them? The SPIVA U.S. Year-End 2024 Scorecard from S&P Dow Jones Indices shows a different picture. In 2024, 65% of all large-cap actively managed funds underperformed the S&P 500. Over the 15-year period ending December 2024, there was no category, not one, where a majority of active managers beat their benchmark.2 These aren’t amateur operations. These are full teams of analysts with decades of experience, and roughly two out of three still can’t keep up with a simple index. As Ray Dalio has put it, trying to time the market is harder than competing in the Olympics. Index funds are safer for most investors not because they’re flashy, but because they remove the guessing. For more on why staying consistent usually wins, this article on trying to time the market makes a strong case with real data. What Are the Best Index Funds to Consider? Most investors don’t