-
ETFs are very useful tools for investing in retirement.
-
They also provide a convenient way to gain exposure to cryptocurrencies in your retirement accounts.
-
Patience and consistency in your habits are essential to obtain good results with these active ingredients.
-
10 stocks we like better than iShares Bitcoin Trust ›
Retirement accounts are where all of your small investment decisions can potentially turn into life-changing results over time.
In November, I look forward to strengthening my lineup with three exchange-traded funds (ETFs) in particular, each playing a different role that I want to cover in my portfolio. Here’s what I’m going to buy and why.
THE iShares Bitcoin Trust ETF (NASDAQ:IBIT) is my chosen way of putting Bitcoin (CRYPTO:BTC) in my retirement account, where it is still too cumbersome to own cryptocurrencies directly. This is a spot ETF that directly holds Bitcoin and charges an expense ratio of 0.25%.
For me, the appeal of Bitcoin is that its supply is limited by its protocol, not by policymakers as is the case with a fiat currency. In theory, this makes the coin a long-term store of value and a hedge against future monetary or fiscal errors, and it could also potentially behave as a hedge against inflation.
Buying IBIT makes it easy to express this investment thesis in a tax-advantaged account. For what it’s worth, I also regularly buy Bitcoin directly, and will continue to do so as well.
THE SPDR S&P 500 ETF Trust (NYSE:SPY) is a small but important pillar of my retirement investment that I will perpetually supplement.
He follows the S&P500 index, which holds 500 large, large-cap U.S. companies and covers approximately 80% of the value of the domestic stock market. The fund only charges around 0.09% per year, which is extremely low for such a broad exposure.
Over long periods of time, the S&P 500 has generated average annual returns of around 10% when dividends are reinvested, despite recessions, inflation spikes and market panics along the way. This makes it a pretty safe stock, ripe for cost averaging, and it also means that this ETF can actually take your patience and turn it into future purchasing power.
I don’t expect buying this ETF to make me rich. But in the very long term, I am convinced that it will make me richer than before.
The brand new Canary XRP ETF (NASDAQ:XRPC) is the newest and riskiest of the three ETFs on this list. It began trading on November 13 as the first U.S. cash ETF offering investors direct exposure to XRP (CRYPTO:XRP)the native token of the XRP Ledger (XRPL), and it charges an expense ratio of 0.5%.
