Key Takeaways Almost any type of investment is allowed within an IRA, including stocks, bonds, mutual funds, annuities, unit investment trusts (UIT), exchange-traded funds (ETFs), and even real estate. Most financial assets can be held in a Roth individual retirement account (IRA). Exceptions include life insurance and collectibles. Investments in common Roth IRAs include stocks, mutual funds and exchange-traded funds (ETFs).
The best exchange-traded funds (ETFs) for your Roth IRA will include funds designed for long-term investments. ETFs and other investments held in individual retirement accounts (IRAs) increase tax-deferred, and certain types of funds are ideal for this qualified retirement plan. In most IRAs, you can choose individual stocks or choose from a long list of mutual funds. Or you can leave those decisions to an expert by choosing a low-cost robo-advisor or an IT investment manager to do the work for you.
Check out our top picks for robo-advisors. Private letter resolutions apply to ETFs that are organized as trusts and purchase physical precious metals, such as iShares COMEX Gold Trust (IAU), iShares Silver Trust (SLV), and SPDR Gold Shares. Why ETFs in a Roth IRA Can Be Especially UsefulAny investment in a Roth IRA can provide you with tax-free income, helping you save on your taxes in retirement. Buying bullion outright that does not meet the minimum penalty requirements is prohibited with IRA funds, but exchange-traded funds (ETFs) that hold gold or silver bars are treated differently.