Suze Orman

   Back to main Resources page

Funds and ETFs

Top choices for your Roth IRA and other long-term investments.

I know you don’t have the time or interest to wade through the thousands of mutual funds and ETFs in search of the right investment. Who does?

So below are some of my favorite mutual funds and Exchange Traded Funds (ETFs). After reading Chapter 7: Investing Made Easy, you know that I am a big fan of low-cost index and ETF funds. They are a ridiculously simple way to get broad market exposure; I think of them as a good one-stop shopping option for those of you who don’t want to spend too much time building an investment portfolio.

I have also included a handful of actively-managed mutual funds for those of you who want to add some other funds to your core index funds.

With actively managed funds I have chosen a mix of funds that specialize in different types of stocks: there are large caps and small caps, as well as value, growth, and blend styles. If that just sounded foreign to you, head on back to page 226 of the book for a refresher course.

Speaking of foreign, I have also included a few foreign fund and ETF choices for you. As I explained on page 236, getting some exposure to the global economy helps round out your investment portfolio.

BUYING TIPS

Mutual funds can be bought directly from the fund company, or you can purchase shares through a discount brokerage. I have included the websites for the fund companies mentioned below.

Exchange Traded Funds are essentially stocks, so you need to purchase them through a discount brokerage, where you will be charged a small brokerage commission. That’s totally okay if you are making a lump sum (one-time) investment each year. But if you decide to Dollar Cost Average (see page 233) I would recommend using a regular no load mutual fund rather than an ETF. You don’t want to pay a commission on an ETF purchase every time you make a monthly investment.

INDEX INVESTING

INDEX MUTUAL FUNDS
MUTUAL FUND WHAT IT TRACKS WHERE TO GET MORE INFO MINIMUM INITIAL INVESTMENT FOR ROTH IRA
Vanguard Total Stock Market Index Fund The whole kitchen sink: Large, Mid-cap and Small U.S. stocks Vanguard
1-877-662-7447
$3,000
Vanguard 500 Stock Index Fund Large-cap U.S. stocks Vanguard
1-877-662-7447
$1,000
T. Rowe Price Equity Index 500 Large-cap U.S. stocks T. Rowe Price
1-800-225-5132
$1,000*
Vanguard Total International Stock Index Fund The whole kitchen sink; stocks from 30 countries across Europe, Asia and Emerging Markets. Vanguard
1-877-662-7447
$1,000
*$50 initial minimum if you enroll in automatic investment plan and make periodic investments.

EXCHANGE TRADED INDEX FUNDS (ETFS)
ETF (ticker symbol) WHAT IT TRACKS WHERE TO GET MORE INFO
Vanguard Total Stock Market VIPERS (VTI) The whole kitchen sink: Large, Mid-cap and Small U.S. stocks Vanguard
SPDR Trust (SPY) Large Cap U.S. Stocks American Stock Exchange
NASDAQ-100 Trust (QQQQ) Tech-laden U.S. stock index NASDAQ
iShares MSCI-EAFE (EFA) International Stocks Barclay's



 

ACTIVELY MANAGED MUTUAL FUNDS

 

MUTUAL FUND WHAT IT INVESTS IN WHERE TO GET MORE INFO MINIMUM INITIAL INVESTMENT FOR ROTH IRA
Selected American Shares Large Cap Blend stocks Selected Funds
1-800-243-1575
$1,000
Fidelity Contrafund Large Cap Growth Stocks Fidelity
1-800-343-3548
$2,500
Oakmark Large Cap Value Stocks Oakmark
1-800-625-6275
$1,000
T. Rowe Price Equity Income Large Cap Value stocks T. Rowe Price
1-800-225-5132
$1,000*
Third Avenue Value & Third Avenue Small Cap Value Small Cap Blend Stocks& Small Cap Value Stocks Third Avenue Funds
1-800-443-1021
$500
Dodge & Cox International Stock Large Cap Value Foreign Stocks Dodge & Cox
1-800-621-3979
$1,000
*$50 initial minimum if you enroll in automatic investment plan and make periodic investments.
© 2014 Suze Orman Media, Inc. All rights reserved.
Privacy Policy  |  Terms Of Use