Guide to the Best Charles Schwab ETF List of 2022

Guide To Charles Schwab ETF

Charles Schwab is a U.S. based financial services company that offers various investment management services meant to cater to all types of investors. Clients receive investment advice and strategies to help them achieve the highest return of investment possible. Schwab offers various products for their clients, such as stocks, exchange-traded funds (ETF), mutual funds, and money.

This article aims to provide readers with an idea of how to start investing in an ETF. Here, you will learn the introductory information necessary to start building your investment portfolio. Also, you will see a list of the best ETFs with low fees.

Charles Schwab: An Overview

Schwab index funds have been in the market for several decades now, but it was only in 2009 that the company has started to offer exchange-traded funds. More than a decade later, Schwab has gained a reputation for offering profitable ETFs with low expense ratios. In fact, it was Schwab who first introduced the no-commission offers for an ETF, which other investment companies copied.

ETF is an abbreviation for “exchange-traded fund,” which is a type of investment fund traded on stock exchanges. It is a collection of investable assets like bonds or stocks which is used to track an index or to invest in a certain industry or sector. For investors, an ETF is a quick way to diversify their portfolio even though they only bought one security.

It is easy to confuse an ETF and mutual funds. In many ways, these two are the same. But the major difference between the two is that an ETF is traded throughout the day. In contrast, mutual funds are traded only once a day, after the market has closed.

Today, Schwab was ranked #1 for offering low-cost and free ETF trading by the Investor’s Daily Business. Investors can choose from the 2,000 index mutual funds and ETF products they offer. Also, it has a lot of ETF products apt for investors who have limited funds.

Why Choose Charles Schwab Index Funds?

Through the years, Schwab has gained popularity for offering affordable index funds. It has been favored by many for offering the best ETFs and mutual funds. Below are some of the specific reasons why Schwab continued to attract thousands of investors in the past decade.

  • Low-cost index funds

Many investors would attest to the affordability of Charles Schwab index funds. Each has affordable if not the lowest expense ratio in the market. Also, Schwab has numerous commission-free ETFs. Given these factors, it is no doubt that the company has developed a reputation for being an affordable discount broker. It has maintained its brand of being one of the most reachable ETF issuers in the globe.

  • Easy and effective research

There is no denying that investing can be a tough job because of the many information you need to read and understand. It is overwhelming for beginners to encounter terms like Stock Market Index Fund, S&P 500 Index Fund, or Aggregate Bond ETF, and more.

But, those with Schwab brokerage accounts would find it easy to understand the details of the stocks and funds they are buying. Schwab has several resources, as well as help from third-party independent researchers, to guide investors to make the best investment decisions.

  • Large assets managed

Admittedly, Schwab only has a few ETFs. Despite this, it manages assets with $145 billion – fifth-largest U. S. ETF sponsor. This is an admirable feat considering that its competitors like Vanguard have way more ETF offerings. The large assets managed by Schwab tells us that its ETFs are highly in-demand.

Two Ways Schwab Categorizes Its Equity ETFs

Charles Schwab has two ways of categorizing its ETFs, namely, market-cap ETFs and Fundamental index ETFs. These are two methodologies used by Schwab when it comes to indexing its index funds. Note that both of these approaches can help you build and improve your investment portfolio.

1. Market-cap ETFs

These ETFs benchmark indexes to their portfolio based on the size of a company’s market capitalization or the total value of the shares of stock of the company. For example, Schwab has a so-called Schwab 1000 Index, which tracks the 1,000 largest companies traded on the stock market of the United States.

On the other hand, Schwab has the so-called Dow Jones U S Small-Cap Total Stock Market Index, which tracks the 1,750 smallest companies in the American stock market. You can see that both indexes sort the list of companies by market capitalization.

Under the market-cap ETFs of Schwab. They provide an easy way for their investors to invest in small-cap, mid-cap, and large-cap growth companies that are traded in the stock market. Note that U. S. small-cap companies are those with a market capitalization of less than $2 billion. Meanwhile, mid-cap has between $2 billion to $10 billion. And, U. S. large-cap companies are those with a market capitalization of more than $10 billion.

2. Fundamental index ETFs

While the market-cap ETFs are based on market capitalization, the Fundamental Index ETFs are based on three measurements of the company size. These are: first, adjusted sale; second, retained operating cash flow; and third, dividend and buybacks. Adjusted sales refer to the measurement of the company’s revenue. Meanwhile, retained operating cash flow refers to the total amount of cash the company keeps each year. And, dividend refers to the amount paid by the company to the shareholders.

Fundamental Index ETFs have higher expense ratios compared to market-cap ETFs. Also, they bear greater tax liabilities. Despite these disadvantages, Schwab’s Fundamental Index ETFs have shown better performance than its market-cap ETF counterparts. Hence, it is understandable why investors choose this.

How to Buy Schwab ETFs?

There are multiple ways to buy Schwab ETFs. You can directly buy the ETFs issued by Schwab. Also, you can buy from the Schwab ETF OneSource. Both of which have commission-free options.

If there are no commission-free products you can find, you can avail of Schwab’s brokerage commissions. Here, you will pay for an advisor who will help and guide you on where to invest your money. Opening a brokerage account does not necessarily mean spending a lot of money. If you play your cards right, your brokerage account can yield a high return on investment.

Buying Schwab ETFs are fairly simple and easy. Just follow the steps below and be a pro in no time!

1. Open an account at charles schwab website

The first thing you have to do is to open an account and put in the fund you are willing to invest. Take note that there are a wide selection of Exchange-traded funds (ETFs) at some of the lowest costs, so decide on which ones are the best for your portfolio.

2. Select number of shares you wish to purchase

On the website of Schwab, just use the ETF ticker and the number of shares you wish to purchase. If the ETF you chose is not commission-free, you also have to make sure that your account has enough cash to pay both for the price of the share and the added commission fee.

3. Build your portfolio and start trading!

When you start building your portfolio by buying ETFs, you can use the Personalized Portfolio Builder tool offered by Charles Scwab to simplify the process. You can as well use the variety of tools, guidance, and support designed they extend to beginners or have live support from Schwab Investment Professionals available 24/7 on their website support.

Wooden Block With ETF

7 Best Schwab ETFs for Low Fees

Charles Schwab, as an investment company, has a lot of index fund offerings for investors. Below are seven of the Schwab ETFs with low fees. These are for investors who do not have a lot of funds for their investment accounts. Maybe, one of these funds is right for you.

Note that each of these Schwab ETF is low-cost and has a minimal expense ratio. If you want to have an aggressive type of investment, these ETFs might not be right for you. The challenge here then is to look for the best Schwab index funds that can give you the highest amount of return given the limited amount you have invested.

1. Schwab U. S. Small-Cap ETF (SCHA)

Expense ratio: 0.04%

Management Style: Passively-managed index fund

This fund tracks the total return of the Dow Jones U. S. Small-Cap Total Stock Market Index. It is a low-cost and tax-efficient fund. It provides investors with simple access to U. S. small-cap equities. Also, it is best for those looking for long-term growth for their portfolio.

SCHA is one of the most affordable small-cap funds you can find in the market. It holds about 1,750 stocks and has around 8.3 billion of assets under management. Notably, this ETF has outperformed other funds in the past recent years. For example, it has outperformed Russell 2000 index, S&P Small-cap 600 indexes, S&P 500 Index Fund, or even larger ones like Schwab 1000 Index Fund (SNXFX).

Also, SCHA has allocated 31% of its weight in industrial and healthcare stocks and 37% of its weight in the technology and financial services sectors. While it was only launched a decade ago, this Schwab ETF has shown consistent growth and good performance. In fact, it is managing more than $8 billion in assets today.

2. Schwab Fundamental International Large Company Index ETF (FNDF)

Expense ratio: 0.25%

Management Style: Passively-managed index fund

This is a low-cost Schwab ETF that tracks the Russell RAFI™ Developed ex U.S. Large Company Index. It can serve as a good complement to a market-cap index fund or an actively managed ETF. Buying a similar ETF, a Large Company Index, from other investment advisors, will cost you so much more, around 0.42% compared to only 0.25% charged by Schwab.

The measurements used to construct the benchmark index of the Schwab Fundamental International Large Company ETF are adjusted sales, operating cash flow, and dividends and buybacks. Also, most of the companies in this ETF are based in Europe, Japan, and the U.K. This means that FNDF is good for those looking for an alternative for EAFE funds or those looking for a Schwab International Large Company Index.

3. Schwab U. S. Broad Market ETF (SCHB)

Expense ratio: 0.03%

Management Style: Passively-managed index fund

This ETF tracks the total return of the Dow Jones U. S. Broad Stock Market Index. It is designed to measure U. S. small-cap, mid-cap, and large-cap equities. This fund provides simple access to the 2,500 largest publicly traded U.S. companies, which means that it has four times the number of components in the S&p 500 index. You can use this ETF as the main fund of your portfolio.

Schwab U. S. Broad Market ETF has one of the most affordable ETFs offered in the U.S. One problem, though, is that it is fairly safe and has a low gain. Investors looking for high profit or return should not choose this fund. It is best for those looking for a conservative type of investment.

4. Schwab U. S. Dividend Equity ETF (SCHD)

Expense ratio: 0.06%

Management Style: Passively-managed index fund

This ETF tracks the total return of the Dow Jones U. S. Dividend 100, which tracks the quality and sustainability of dividends. Since SCHD follows a focused approach, it is best to use it to complement a diversified portfolio. It has around $9.5 billion of assets in its management, which means that it is one of the largest dividend ETFs in the United States.

Also, it is one of the least expensive dividend ETFs in the market. Investment advisors and investors favor this fund because of the way it creates its index. It only includes stocks that had a consistent minimum dividend increase in the past 10 years.

5. Schwab U. S. Large-Cap Value ETF (SCHV)

Expense ratio: 0.04%

Management Style: Passively-managed index fund

This ETF tracks the return of the Dow Jones U. S. Large-Cap Value Total Stock Market Index. It gives investors access to large-cap equities in the United States that exhibit value style characteristics. It can serve as part of the core of your diversified portfolio.

Admittedly, Schwab U. S. Large-Cap Value ETF has not performed well in recent years, but it cannot be denied that it remains one of the least expensive index funds you can find today. As a result, this index fund is chosen by investors looking for a long-term investment. In total, this fund has 350 stocks, 22% of which are in the financial sectors, while 28% are in healthcare and technology.

6. Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE)

Expense ratio: 0.39%

Management Style: Passively-managed index fund

This index fund tracks the total return of the Russell RAFI™ Emerging Markets Large Company Index, which is a basket of the largest emerging markets companies based on fundamental measures. This Schwab emerging markets equity ETF is best paired with an index fund that has market-cap indexing, or that is actively managed.

Schwab Fundamental Emerging Markets Large Company Index ETF has remained productive in recent years, largely because of the emerging economies in Asia. Around 40% of the weight of this fund is on the stocks of Asian economies. It is a Schwab ETF that uses an alternative index methodology. It is similar to FNDF, but FNDE is for emerging markets.

7. Schwab U. S. Large-Cap Growth ETF (SCHG)

Expense ratio: 0.04%

Management Style: Passively-managed index fund

It is a Schwab ETF that tracks the total return of the Dow Jones U. S. Large-Cap Growth Total Stock Market Index. It provides simple access to large-cap U.S. equities, which must show growth style characteristics. This is an affordable fund that can provide tax-efficiency.

SCHG is similar to SCHV. The only difference is the focus of this Schwab total stock market ETF is on growth instead of value. Its approach to growth is traditional. For example, a large part of it, around 32%, is invested in technology stocks. This means that investors also have to manage their expectations on the return of their investment.

Related: Charles Schwab Dividend ETF

Bottom Line

The Schwab index funds mentioned above are for investors looking for affordable investment opportunities. Aside from being low-cost (each has a low expense ratio), they are also tax efficient. Despite these advantages, remember that they are low-risk, low-gain investments. Charles Schwab has other index funds for investors with a lot of funds that are expecting bigger gains or profit.

If you feel like the ETFs mentioned above are not right for you, Investoralist has other articles discussing other types of Charles Schwab index funds as well as index funds from other investment services. Browse this website to find other written materials and research tools to help and guide you in your investment. We do have detailed and in-depth discussions about Charles Schwab international and U. S. index funds, U. S. aggregate bond, Schwab U. S. broad market, and many more.

Aside from topics of Schwab mutual funds, index funds, and ETFs, Investoralist has other articles dedicated to explaining how to manage funds, diversify a retirement account, and find affordable expense ratios. Also, you can find our topics on real estate, money lending, credit score, and many more. All of these are easy-to-read and are friendly for beginners.

10 Best Schwab International Index Funds for Your Investment Portfolio

Schwab International Index Fund

Schwab index funds are good choices for investors for decades already, but because of reductions in management costs, Charles Schwab index funds became even more appealing. 

Schwab now offers a wide selection of index funds: from US equities to international stocks, with expense ratios at percent fractions.

Top 10 Best Schwab Index Funds Over the Years

1. Schwab® S&P 500 Index Fund (SWPPX)

In Schwab 500 Index Fund, you are buying into a part of the 500 largest stocks listed on American exchanges.

Their appeal is that they are very cheap, and have a major coverage of the stock market by market value. S&P 500 constituents make up about 80% of the value of all American-listed companies.

Over the past 10 years, SWPPX has tracked the S&P accurately, rewarding long-term investors with a 10-year average return of over 13%.

Information technology stocks dominate the S&P index, making up over 20% of SWPPX’s holdings. Aside from IT stocks, healthcare, financials, and communications companies also make up double-digit percentages.

The expense ratio of SWPPX is set at 0.02%.

2. Schwab Total Stock Market Index Fund® (SWTSX)

Schwab’s Total Stock Market fund invests in almost 2,500 companies that make up virtually all of the market’s value. 

An important advantage of SWTSX is that the Total Stock Market Index has small and micro cap stocks that are not included from other index funds that focus on larger stocks. Therefore, this fund wins over the S&P 500 when small company stocks outperform large companies, and vice versa. Small and microcap stocks make up 7.1% and 2.5% of the fund’s assets, respectively.

In total, you’ll own more than 3,000 stocks by purchasing one fund. Also, the expense ratio for SWTSX is set at 0.03%.

3. Schwab 1000 Index® Fund (SNXFX)

This fund tracks the Schwab 1000 index, a Schwab-branded imitation of the Russell 1000 Index, being heavily weighted toward midcap stocks, which comprises about 19% of the fund’s assets, compared to about 13% for S&P 500 fund, and 19% for Total Stock Market Index fund.

This structure gives an increase in the diversification of a portfolio more than an S&P focused fund, which also gives access to companies that can still grow.

When comparing performance over the past 10 years, SNXFX slightly lags behind Schwab’s SWPPX S&P 500 index fund, giving investors under 13% as an average annual return. In exchange for a lower performance, investors enjoy diversification through exposure to 500 additional companies.

Yields for SNXFX are seen at 1.79%, while the expense ratio is seen at 0.05%.

4. Schwab Small Cap Index Fund® (SWSSX)

Similar to the Rusell 2000 index, this fund is an excellent way to cheaply buy and hold small-cap stocks listed in the United States. The fund carries an annual expense ratio of 0.17%, and diversified across 1,962 stocks.

Over the past 10 years, the fund gave performance-driven investors with an average annual return of 12.63%. Since its creation in 1997, the fund has returned almost 9% on average.

The yields for this fund are seen at 1.32%.

5. Schwab Fundamental US Large Company Index Fund (SFLNX)

If you prefer to invest in proven options, you may check out Schwab’s Fundamental US Large Company Index. The fund reduces exposure to large cap stocks that may have outrun their value based on fundamentals.

Expense ratio comes high at 0.25%. However, this number is still below the cost of many actively managed mutual funds.

6. Schwab Fundamental US Small Company Index Fund (SFSNX)

SFSNX tracks an index of more than 900 small-cap stocks, leaning heavily towards industrials, consumer discretionary stocks, and financials, which comprises almost 50% of the fund’s holdings combined.

The expense ratio is at 0.25%, which is less expensive than many actively managed funds.

7. Schwab Fundamental International Large Company Index Fund (SFNNX)

With nearly $1.3 billion in assets under management, SFNNX has nearly 25% of its investments in Japan and 16% in UK-based companies.

Currently, the fund yields over 3%. However, overall performance lags behind US large-cap indexes. Average 10-year performance for SFNNX is under 5%. 

SFNXX has a price to earnings ratio of just 12.66%, while the expense ratio is at 0.25%.

8. Schwab Fundamental International Small Company Index Fund (SFILX)

SFILX focuses on international investments in developed countries, composed of around 1,700 small companies.

Exposure heavily leans toward Japanese stocks with nearly 35% of the fund’s assets invested in it.

SFILX’s 10-year average performance comes in at over 7% with a stronger-than-average 2.34% yield, coupled with a 0.39% expense ratio.

9. Schwab International Index Fund® SWISX

The Schwab International Index Fund invests in countries with developed equity markets. 

Yields are at 2.67%, and with just a 5% turnover, SWISX delivers steady gains with an affordable 0.06% expense ratio.

10. Schwab Fundamental Global Real Estate Index Fund (SFREX)

A fund that is heavy on REITs, yields for The Schwab Fundamental Global Real Estate Index Fund are higher than for broad market funds, seen at over 3.5%.

The fund’s short-term returns are strong as well, with a 1-year annual return of over 12%.

Since its creation in 2014, SFREX investors have earned an average of 7.63%.

Read more: Finding the Best Charles Schwab Mutual Funds to Invest.

Charles Schwab over the years

For less than 50 years, the Charles Schwab Corporation has made a permanent mark on the history of the investment world. The company started in 1971, starting as an investment newsletter service, which later evolved to include a broker-dealer business.

Changes to SEC regulations in the early 1970s provided an opportunity for Schwab, which was used to launch its first retail brokerage branches.

Charles Schwab has almost 350 brick-and-mortar brokerages throughout the US at present time. As time went by, the brokerage began acquiring funds of its own, which fueled its continued growth.

In 1997, Schwab introduced its famous Schwab S&P 500 Index Fund (SWPPX), the same year the company was added to the S&P 500 index.

At present, the company offers more than 50 funds, which ranks it as the 3rd largest mutual company in terms of assets under management.


Charles Schwab aims to empower individual investors, which is a part of the company’s mission statement. Their client-first philosophy helps investors through several types of investment services. The offers of Schwab are listed below.

1. Brokerage accounts

As expected by investors, Schwab brings world-class services to both its retail branches and online accounts.

With low investment requirements, no minimum deposit, and the availability of $0 trades, a Schwab brokerage account offers an attractive way to start investing that is accessible to everyone.

2. Trading solutions

Schwab’s goal of empowering investors can be seen in the tools offered by the company.

Research tools and market data comprises the core of Schwab’s offering of its StreetSmart Edge trading platform for making educated trading decisions. 

The company also offers trades and research details in its website as well as mobile apps, so your portfolio is available to you wherever you go.

3. Automated investing

Schwab offers an automated hands-off investing for investors preferring that kind of situation. With this, you can set up automatic reinvestments for continued growth of accounts through dividends and other earnings.

Schwab also offers a computer-generated advisor, an automated service that helps you build an ETF-based portfolio that keeps you diversified. Schwab’s experts also monitor underlying funds to be sure they still match your strategy, which means that you will gain the advantages of both automation and expert oversight.

4. Schwab global account

Similar to other Schwab services, Schwab’s global account is designed for accessibility.

They have no account minimum and no trade minimum, and they also allow you to trade on your terms and gain access to leading markets like Australia, Canada, and several European countries, as well as Asian markets.

5. Retirement accounts

Schwab offers a full complement of retirement accounts, which allows you to choose from Traditional or Roth IRAs. You may also start a Rollover IRA to move retirement funds from another source into your Schwab portfolio.

A SEP IRA or a Simple IRA can also be an effective way for self-employed investors to plan for your future using Schwab’s investment services.

6. Education savings accounts

Ideal as a supplement to a 529 plan, an education savings account (ESA) helps in paying for education expenses from kindergarten through college. Withdrawals are tax-free when used for eligible education expenses. Account earnings can also grow tax-deferred.

Conclusion: Which Schwab Index Fund is right for you?

To choose the best Schwab Index Fund, you need to consider the long-term average of its returns, its yield percentage, as well as its expense ratio. This will help you assess and strike a balance between your goals as an investor, the investment cost that you are willing to part with, and your risk-reward preference as well.

Also, the option of choosing a diversified portfolio or opting for a portfolio with a particular concentration needs to be considered by the investor as well, applying their own beliefs and goals in their given choice.
To find out more about the investment world or anything financial, you may check out, designed to bring you the latest updated articles to help you make better finance-related decisions in life.

7 Best Fidelity Mutual Funds to Buy and Invest

Best fidelity mutual funds

Mutual funds and all things concerning the stock market are still perceived with intimidation by non-investors and investors alike. But in actuality, it can be an investment venture with a higher chance of yielding the best possible results. If one educates themselves about mutual funds’ specifics, the profit returns may prove this fund efficient.

First, some of the complex terms one needs to grasp in the concept of mutual funds are dividends, stocks or shareholdings, and market capitalization.

What is a Mutual Fund?

To simply put, it is a collection of money invested in various assets or commodities such as stocks, bonds, securities, equities, and others. Some of these assets or a combination of them can be found in a stock fund portfolio. This stock fund portfolio is then actively managed by a professional fund manager. A fund manager is an expert investment advisor that also manages the different activities in a portfolio that you have acquired, including rebalancing stocks, determining dividend yield, stock allocation, depositories, and more. Hence, investors are encouraged to select the ideal option based on their financial strategies and profit return goals.

Investing firms like Fidelity offers the best low-cost mutual funds investment options and some other types of Fidelity growth company investment services to accommodate and provide a satisfactory user experience.

Before we go over and discuss the top rated or the 7 best Fidelity Mutual Funds worth investing in, here are some important terms investors should know:


A stock is an ownership of the company’s investor on its earnings and assets.

Stock embodies two types:

1. Preferred – No voting rights but in possession of larger ownership on assets of the company

2. Common – Have voting rights but reduced ownership on assets of the company


Portion of the company’s profit assets for the investor.

Market Capitalization – Market Cap:

Market Cap = The amount of the company’s outstanding shares or the current market price for a single shareholding

For Example: If a company’s outstanding shares is $10 million and the cost per share is $100, then Market Cap is around = $10 million * $100 = $1 Billion

Companies classified as:

  • Large Cap (> $10 billion)
  • Mid Cap ($2 – $10 billion)
  • Small Cap ($300M – $2B)

Why Fidelity Funds?

Fidelity Funds is a mix of funds that cover all asset classes of mutual funds, from domestic equity to specialized sectors with transparent and minimal costs. If you are planning to invest in the long run, it is important to keep those qualities in mind.

In the words of Scott San Emeterio, Founder and CEO of BallStreet Trading, “If your strategy is to buy and hold, the importance of a transparent and low-cost basis cannot be understated.” 

7 Best Fidelity Funds to Buy and Invest

1. Fidelity Blue Chip Growth K6 Fund (FBCGX):

Blue-chip stocks:

Stocks of highly reputed companies that are financially stable for years are popular for high dividend yielders.

FBCGX, in short, is considered one of the safe fidelity select funds as it concentrates allocation of at least 80% on tech and consumer discretionary sectors. March 2020 recovery lows show the focus on select names like, Apple, Microsoft Corp., and Facebook with an initial investment ratio of 0.45%

U.S has ranked FBCGX as No.17 in large growth with a performance of 59.48% revenue over a year and 25.91% over the past three years.

Fees: Below average

Risk: High risk, according to the Morning star.

2. Fidelity ZERO Large Cap Index Fund (FNILX):

As the name implies, FNILX has a 0% expense ratio, which banishes the fear of long-term investors’ cost. FNILX is the best option for the buy and holds investors as it has a 3% holdings turnover ratio. In FNILX, at least 80% of the fidelity fund are invested in Large Cap companies with Large Cap index funds. FNILX obtained a remittance of 17.12% over the last year.

3. Fidelity ZERO International Index Fund (FZILX):

FZILX is one of the best fidelity funds options, including a zero expense ratio for a buy and hold investor. It provides exposure to foreign markets beyond the U.S. as it aims to reflect the total returns of foreign and emerging markets. Top holdings include Nestlé SA (NSRGY), Tencent Holdings (TCEHY), and Alibaba Group Holding, where they have proven to be one of the best fidelity funds in a short period.

4. Fidelity Freedom Blend 2050 Fund (FHAPX):

FHAPX is a target-date retirement savers fund (401 k plans) with an asset allocation goal on growth and income and high current income. It is the blend of Fidelity Large Cap Value Index Funds, the Fidelity International Growth Fund and the Fidelity Investment Grade Bond Fund, and other Fidelity Funds. FHAPX has a 1.79% current yield and a 0.55% expense ratio. Assets are allocated based on a neutral asset allocation strategy adjusted over time, similar to 10 to 19 years after the year 2050, to reach allocation of a similar sort to the Fidelity Freedom® Blend Income Fund.

5. Fidelity Total Market Index Fund (FSKAX):

FSKAX is a large blend of index funds. Fidelity invests in top-performing common stock funds with huge growth potentials such as Amazon and Alphabet (GOOG, GOOGL). For an investor who plans *in* investing *to* the total stock funds, FTKAX can help as it offers a 0.01% expense ratio and has returned 13.68% to the investors over a period average of 10 years.

6. Fidelity Capital & Income Fund (FAGIX):

FAGIX could be appropriate for dividends as it focuses on income and capital growth via investments in equity and debt securities. It is categorized as a high-yield bond with a credit rating below investment grade. A higher rate of interest compensates high risk. FAGIX has an expense ratio of 0.74%

Best suited for Investors looking *for a* high dividend yield and who can take high risk.

7. Fidelity Flex U.S. Bond Index Fund (FIBUX):

It provides steady interest payment and lower risk.

The speculation looks to give venture results comparing the aggregate price and interest performance of the debt securities in the Bloomberg Barclays U.S. Aggregate Bond Index funds.

FIBUX has provided a three-year return of 5.38% and a yield of 2.45% with a 0% expense ratio. Investors also need to take note that it has 85% holdings turnover ratio.

How to Buy Shares in a Mutual Fund?

Now that we have understood a mutual fund and the top-rated fidelity funds to invest in, let’s move forward to the next question: how to purchase mutual funds fidelity shares?

As a first-time investor, one is advised to directly buy mutual funds from the company or service broker or online discount broker. But one must remember to keep an eye on the fees and the expense charged.

Investors must keep an eye on the mutual fund company’s website to know its goal, stock holdings, fund managements, quarterly return rates chart, and overall composition chart. Not to forget the fees and expense rates.

Online Brokers help compare different competitive companies, that analyzes the risk ratings and other information.

After this, the next question to answer is when to purchase mutual funds fidelity shares? 

Mutual fund shares do not oscillate throughout the day. Instead, after the market closes, it calculates the net asset value (NAV). Hence, one can buy mutual funds only at the end of the trading day.

Annual expense ratio = % of investment and other fees like load fees.

Mutual Funds: Pros and Cons

Advantages of Mutual Funds:

  • Advanced Portfolio Management- Fees paid by the investor is used to employ a portfolio manager to buy and sell stocks.
  • Dividend Reinvestment- Helps in *the* initial investment growth as the investor gets dividends and other income for the fund.
  • Risk Reduction (Safety)- Reduced risk as its investment diversified in various securities.
  • Convenience and Fair Pricing- Eliminates price fluctuation by allowing trade only after closing the NAV.

Disadvantages of Mutual Funds:

  • High Expense Ratios and Sales Charges- Investors must be aware not to exceed a 1.20% expense ratio as it is unduly expensive.
  • Management Abuses – It is prone to churning, turnover, and window dressing that may lead to unnecessary trading and excessive renewals.
  • Tax Inefficiency – Investors receive distributions from the uncontrollable funds regarding taxable dues to turnover, redemptions, gains, and losses in security holdings.
  • Poor Trade Execution – Should an investor trade before the NAV cut off time, they will only be presented with the closing NAV price.


Acquiring fidelity mutual fund shares are primarily recognized as an investment option with considerably lower risks and cheaper assets. 

However, low costs do not usually mean it’s the best option. Some other factors can still influence your entire investable. Wise selection and investors’ discretion are still required to guarantee general growth for your investment capital.If you still seek more information on the subject of mutual funds, Fidelity contrafund, or Fidelity mutual funds, consider contacting us at Investoralist to receive further comprehensive and thorough details and statistics.

8 Best Dividend ETFs for 2022

Best Dividend ETFs

Wise investors understand the risks involved with their investments. Diversification can do well to save their money during the most trying economic periods. Still, each investment vehicle has its respective, top-performing abilities capable of unlocking potentially high-paying dividends. A dividend ETF (exchange-traded fund) is a collection of high-dividend stocks that can pay investors an adequate sum per share they own.

Is a dividend ETF an excellent addition to your portfolio? Will you face added risk or possibly slowed earning capacities? If you do plan to buy dividend ETFs, which are the best to choose among them? We’ll answer all your questions plus show you the 8 best dividend ETFs you can start with this coming 2022.

What Are Dividend ETFs?

A dividend ETF is a collection of stocks that pay shareholders dividends. Companies issuing these public stock appoint the dividend amount shareholders can earn. Businesses issue dividends not because they have surplus profit but to encourage investors to hold and purchase much more business stock. Think of it as an incentive, which is rewarding when the business’ value continues to increase

However, dividend ETFs are quite expensive, especially with their minimum pricing depending on the fund manager and investing company. Local US-only dividend ETFs cost relatively less than their global dividend ETF counterparts. Global dividend ETFs pay higher because of their blue-chip, low-risk stocks, but the payment entry is much more expensive.

How Do Dividend ETFs Work?

All dividend ETFs are passive investments. Plus, they use indexes with above-market dividend with high liquidity levels for easier payout. Fund managers survey and research all reference indexes in-depth, locating companies with the highest dividend payouts in the past. In most cases, fund managers will always include blue-chip stocks because of their low risk and high dividend payouts (if any).

Additionally, fund managers take note of expense ratios in all their fiscal decisions. Dividend ETFs have no specific expense ratio percentages. Still, it has to be lower or equal to the value of no-load mutual funds, which have no commissions or sales percentage during purchases or sales.

Dividend ETF’s Performance Vs. Other ETFs

While ETFs have no share minimums, an ETF costs higher than the average ETF. However, you can purchase just one dividend ETF share and allow it to grow passively. If your purpose is to earn short-term profits plus portfolio profits you might earn after selling high and buying low, then dividend ETFs are a perfect addition to your portfolio.

On the other hand, virtually every investment vehicle, including a dividend ETF, is only a part of a whole. A diversified portfolio will explore and look into other ETFs to see whether its performance can work for their portfolio’s enrichment and profit-making synergy. Here are other ETFs that you might want to consider adding with your dividend stocks.

Versus IPO ETF

Initial public offering exchange-traded funds allow investors high IPO profits, especially during their first day with a high and warm reception from other investors. IPO assets under management are useful for short-term investments.

Versus Index ETFs

The keyword to this ETF is “index.” Fund managers of Index ETFs prioritize monitoring high-performing indexes in the market, such as the S&P 500. Index ETFs grow fast because it mimics top-notch funds, including domestic, global, blue-chip, and small-caps stocks.

Versus ETF of ETFs/ETF Collection

As its name implies, an ETF of ETFs or an ETF collection is an actively-managed fund that a fund manager oversees and tracks hourly per day. In doing so, they provide additional flexibility, such as variable risk level and short-term investment opportunities.

8 Best Dividend ETFs for 2022

1. Invesco S&P 500 Quality ETF (SPHQ)

  • Expense Ratio: 0.15%
  • Annual Dividend Yield: 1.73%
  • 3-Month Average Daily Volume: 516,514
  • Assets Under Management: $2.2 billion
  • Inception: December 6, 2005

SPHQ feels like an index ETF than a dividend fund. It closely tracks the S&P 500 High-Quality Rankings Index, which focuses on the most stable earnings and dividends. Unlike a typical index fund that chases accuracy over profit, SPHQ focuses on finding quality with a certain critical-thought application.

2. WisdomTree Global ex-U.S. Quality Dividend Growth Fund (DNL)

  • Expense Ratio: 0.58%
  • Annual Dividend Yield: 2.10%
  • 3-Month Average Daily Volume: 21,539
  • Assets Under Management: $230.1 million
  • Inception: June 16, 2006

The WisdomTree Global ex-U.S. Quality Dividend Growth Fund includes all dividend-paying, large-cap companies in markets across developing and developed markets. Its pre-set global nature selects the top 300 of 1,000 companies it collects from the markets we’ve mentioned earlier. Truthfully, most notable stocks are non-blue-chip brands, which include British American Tobacco PLC, Fortescue Metals Group, and Novo Nordisk, to name a few.

3. Vanguard Dividend Appreciation ETF (VIG)

  • Expense Ratio: 0.06%
  • Annual Dividend Yield: 1.78%
  • 3-Month Average Daily Volume: 1,114,565
  • Assets Under Management: $47.0 billion
  • Inception: April 27, 2006

If you’re an investor looking for an established, long-term position, the 180-stock collection of the Vanguard Dividend Appreciation ETF is perfect for you. The ETF and its managers track funds that have continuously upgraded its dividend values over the last decade. While the profits go slower here if you compare its performance with other funds, VG offers undeniably great dividend figures. It includes Microsoft, Walmart, and Procter & Gamble as part of its stock.

4. iShares Broad USD High Yield Corporate Bond ETF (USHY)

  • Expense Ratio: 0.15%
  • Annual Dividend Yield: 5.52%
  • 3-Month Average Daily Volume: 785,165
  • Assets Under Management: $689 Million
  • Inception: October 26, 2017

The iShares Broad USD High-Yield Corporate Bond focuses on eponymous bonds that have high-interest rates. Their argument: the interest itself is enough to propel the fund despite the low borrower credit scores. It includes T-Mobile and Ford Motor Co. in its company roster.

5. Global X U.S. Preferred ETF [PFFD]

  • Expense Ratio: 0.23%
  • Annual Dividend Yield: 9.22%
  • 3-Month Average Daily Volume: 518,224
  • Assets Under Management: $913 Million
  • Inception: Sept 13, 2017

Having a hybrid stocks and bonds portfolio sounds great to have on any portfolio, and preferred stocks give you just that. The Global X U.S. Preferred ETF is much more stable than regular stock. On the other hand, if your goal is to maximize mid to short-term profits, you’ll find yourself limited with preferred stocks.

6. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)

  • Expense Ratio: 0.07%
  • Annual Dividend Yield: 9.22%
  • 3-Month Average Daily Volume: 518,224
  • Assets Under Management: $1 Billion
  • Inception: October 21, 2015

If you’re one to think the S&P 500 index has many non-dividend-paying companies, you’re not alone. The SPYD focuses on removing all those non-dividend payers to give you exactly what you want, high returns.

7. Energy Select Sector SPDR ETF (XLE)

  • Expense Ratio: 0.13%
  • Annual Dividend Yield: 13.92%
  • 3-Month Average Daily Volume: 34,326,275
  • Assets Under Management: $1 Billion
  • Inception: December 16, 1998

Dependent on energy sector companies, which often pay good dividends per share, investors get mostly the lion’s share of dividends. Energy and oil companies need all the support, and XLE is perfect if you want long-term stability with great dividends.

8. Vanguard Global ex-U.S. Real Estate ETF (VNQI)

  • Expense Ratio: 0.12%
  • Annual Dividend Yield: 7.75%
  • 3-Month Average Daily Volume: 458,377
  • Assets Under Management: $4.8 Billion
  • Inception: November 11, 2010

Real estate keeps on growing as long as it isn’t in a bubble. VNQI focuses on investing in non-US real estate investment trusts and companies, prioritizing Japan, and Hong Kong as its top markets. It includes Germany’s Vonovia SA and Japan’s Mitsui Fudosan, two companies with hard properties to back up their value.

Which One Can Give You The Best Yield?

Dividend ETFs cannot guarantee anything except risk figures and percentages. While they’re a great addition to your portfolio, they include risks that involve possible enormous gains and expenses. Think of it like this: ETFs are individuals who let you ride on their investment bets. If they mirror your investing values, you can get the best yield.

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Best Schwab Money Market Fund to Invest in 2022

Best Schwab Money Market Fund

Investors find money market funds attractive because they come without unnecessary load or burden, such as entry charges or exit charges. Investors only prefer to invest substantial amounts of cash in money market funds for a short-term period because such funds are not suitable for long term investment goals like retirement planning.

What Is a Money Market Fund?

Money market funds are also referred to as money market mutual funds. A money market fund is a mutual fund that puts investments in highly liquid, near-term instruments. Examples of these instruments are cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity like the U.S. Treasury Bills.

Managing money market funds entails working on a highly stable asset value through liquid investments while at the same time paying investors in the form of dividends. Hence, money market funds offer high liquidity to investors with a very low-risk level. Although not quite as safe as cash, money market funds are considered extremely low-risk on the investment spectrum.

Do not confuse the Money Market Fund with Money Market Account (MMA). The former carries no principal guarantee while the latter, being insured by the Federal Deposit Insurance Corporation (FDIC), has transaction privileges. MMA is a type of interest-earning savings account that is offered by financial institutions.

How Does a Money Market Fund Works?

Like an ordinary mutual fund, money market fund issues to investors some redeemable units or shares. Investors are protected in the sense that money market funds follow certain guidelines promulgated by the authority, such as the Securities and Exchange Commission or SEC.

A money market fund generates income (taxable or tax-free, depending on its portfolio) but little capital appreciation. Money market funds should be used to park money temporarily before investing elsewhere or making an anticipated cash outlay; they are not suitable as long-term investments.

There are many debt-based financial instruments where a money market fund may invest. Here are some examples:

· Commercial paper.

This is an unsecured short-term corporate debt as any form of collateral does not back it. Commercial paper is usually used to finance short-term liabilities such as payroll, inventories, and accounts payable. The maturity of commercial papers does not take any longer than 270 days.

It is typically issued at a discount from face value, and it usually reflects the prevailing market interest rates.

· Bankers’ Acceptances (B.A.).

These are short-term debt that is guaranteed by a commercial bank. B.A. is a negotiable instrument that functions like post-dated checks work, although it is the commercial bank and not the account holder that guarantees the payment. It is traded at a discount to face value in the money markets.

· Repurchase agreements (Repo).

These are short-term government securities. Dealers sell government securities to investors.

The transaction usually takes place on an overnight basis. These dealers buy back these government securities the following day at a slightly higher price. The gap in the selling and buying price is what they call the implicit overnight interest rate.

It is for this reason that repo is good when it comes to raising short-term capital. The central bank also uses repo to aid open market operations.

· U.S. Treasury Bills.

These are short-term government debt issues.

· Certificates of Deposits (CD).

Banks issue these with short-term maturity. Banks and credit unions offer a CD. CD provides an interest rate premium in exchange for the customer agreeing to leave a lump sum deposit untouched for a predetermined period.

Although almost all consumer financial institutions offer CD, it is the sole discretion of each bank that CD terms it wants to offer, how much higher the rate will be compared to the bank’s savings and money market products, and what penalties it applies early withdrawal.

Types of Schwab Money Market Funds

Money market funds are classified into various types depending upon the class of invested assets, maturity, and other attributes.

Different Schwab Money Market Funds prioritize liquidity, current income, and stability of capital. Some of their common features include having no transaction fees for buying and selling, a minimum investment of as low as $0, and access to tax-exempt money funds. Schwab Money Market Funds give investors a convenient way to access potentially higher cash yields because of these common features.

1. Prime Money Fund

Schwab Prime Money Funds are taxable.

These funds invest in high-quality, short-term money market securities issued by the U.S. and foreign entities, including financial institutions, the U.S. government, and other corporations.

As of December 02, 2020, the 7-day yield (with waivers) of Prime Money Funds like the Schwab Value Advantage Money Fund “Investor Shares” (SWVXX) is 0.03%. The minimum initial investment of this type of Prime Money Fund is $0.

Take note, however, that although the Fund’s Investor Shares have no initial investment minimum, Schwab systems require the minimum payment of $1 per transaction or trade. These minimum initial investments are subject to change. It is, therefore, advisable to check Schwab’s website for these potential changes.

2. Government and Treasury Fund Money Fund

Government and Treasury Fund Money Funds are also taxable.

These funds invest in short-term U.S. government debt securities. A government money fund invests at least 99.5% of its total assets in cash, government securities, and repurchase agreements that are fully collateralized by cash or government securities.

There has been a 0.01% 7-day yield (with waivers) as of December 02, 2020. Likewise, various Schwab Government and Treasury Fund Money Funds require a minimum initial investment of $0, but there are also those that require $1,000,000.

3. Municipal Money Fund

Lastly, Schwab Municipal Money funds are tax-exempt.

These funds invest in short-term municipal money market securities issued by states, local governments, and other municipal agencies. Municipal Money Fund qualifies as a retail money market fund, which means that it is available for investment by natural persons only.

When the shareholder fails to satisfy eligibility requirements for a retail money market fund (for example, when the shareholder is not a natural person as required), the Schwab Municipality Money Fund reserves the right to involuntarily redeem a shareholder’s shares after providing 60 days’ written notice.

Moreover, the fund may also deny the purchase of Fund shares.

For those Schwab Municipal Money Funds that require a minimum initial investment of $0, there has been a 0.01% 7-day yield (with waivers) as of December 02, 2020. Moreover, a 7-day taxable equivalent yield of 0.02% was recorded on the same date.

Schwab Money Market Fund by Category

Before going over the different Schwab Money Market Funds, know what the following means:

The 7-day yield refers to the average income paid out over the previous seven days assuming interest income is not reinvested, and it reflects the effect of all applicable waivers.

The taxable-equivalent yield in the Schwab Municipal Money Funds Table assumes a federal regular income tax rate of 40.80%, which includes a Medicare surcharge rate of 3.8%. Take note, however, that your tax rate may be different.

Schwab Prime Money Funds
Fund Name 7-day yield (with waivers)as of 12/2/2020 Minimum initial investment
Schwab Value Advantage Money Fund® Investor Shares (SWVXX) 0.03% $0
Schwab Value Advantage Money Fund® Ultra Shares (SNAXX) 0.03% $1,000,000
Schwab Government and Treasury Money Funds
Fund Name 7-day yield (with waivers)as of 12/2/2020 Minimum initial investment
Schwab Government Money Fund – Investor Shares (SNVXX) 0.01% $0
Schwab Government Money Fund – Ultra Shares (SGUXX) 0.01% $1,000,000
Schwab Treasury Obligations Money Fund – Investor Shares (SNOXX) 0.01% $0
Schwab Treasury Obligations Money Fund – Ultra Shares (SCOXX) 0.01% $1,000,000
Schwab U.S. Treasury Money Fund – Investor Shares (SNSXX) 0.01% $0
Schwab U.S. Treasury Money Fund – Ultra Shares (SUTXX) 0.01% $1,000,000
Schwab Municipal Money Funds
Fund Name 7-day yield (with waivers)as of 12/2/2020 7-day Taxable Equivalent Yields Minimum Initial Investment
Schwab Municipal Money Fund – Investor Shares (SWTXX) 0.01% 0.02% $0
Schwab Municipal Money Fund – Ultra Shares (SWOXX) 0.02% 0.04% $1,000,000
Schwab California Municipal Money Fund – Investor Shares (SWKXX) 0.01% 0.02% $0
Schwab California Municipal Money Fund – Ultra Shares (SCAXX) 0.01% 0.02% $1,000,000
Schwab New York Municipal Money Fund – Investor Shares (SWYXX) 0.01% 0.02% $0
Schwab New York Municipal Money Fund – Ultra Shares (SNYXX) 0.04% 0.07% $1,000,000

Which Schwab Money Market Funds is right for you?

Schwab reminds all money fund investors to consider the information contained in the money fund prospectus, or if available, the summary prospectus that includes investment risks, objectives, charges, and expenses.

Besides considering what information is written in the money fund prospectus, you can directly request a mutual fund prospectus by calling Schwab at 1-800-435-4000 to choose the right Schwab Money Market Fund. Once the mutual fund prospectus is provided, make sure to review all the details contained therein to assess the fund’s strengths and weaknesses fully. After doing so, you may confidently choose which Schwab Money Market Fund is the right one for you.


You are probably reading this article because you are interested in investment, yet your knowledge about it is insufficient to help you make wise investment decisions. You don’t have to worry anymore because this is the exact problem that Investoralist desires to solve.

Investoralist is an excellent site for everything financial. It desires to make investing easy for you by publishing quality articles tackling different investment matters. You will have a better idea of how you can intelligibly invest your limited savings, say $20,000, more or less. If you are new to investment and lacking the confidence to invest, there are published articles on its website that specifically cater to your needs.

Investoralist can help you by making it easier for you to compare a wide range of investment options for those who are at a more advanced stage when it comes to investment. You can get up to date information on investment trends without any fee. Having all the information you need at hand will definitely make it easier for you to make smarter investment decisions. The time that is spent individually checking on different websites can be saved for doing more productive research.

Related: Finding the Best Charles Schwab Mutual Funds to Invest

Roth IRA Fidelity Review: Best Retirement Account for Several Reasons

Roth IRA Fidelity Review

Whether you want to grow your savings or diversify your investment portfolio, a Roth IRA is a great choice that comes with long term tax benefits. Roth IRA is overall the best retirement plan available today that offers tax-free income.


  • There are no minimums or account fees to open a Roth Fidelity IRA account
  • It offers a large variety of investments choices
  • Trades are commission-free
  • High potential for tax-free withdrawals and growth upon meeting the set conditions
  • Free investment tools such as calculators, apps, and software
  • Extensive information and research data available for investors
  • Some mutual funds have no expense ratio


  • Some mutual funds are high cost and attract high transaction fees
  • The robo-advisor service charges a higher-than-average annual advisory fee for balances over $50,000 compared to other competitors
  • Fidelity Roth IRA does not provide access to cryptocurrencies, futures, forex, and other riskier assets
  • You have to invest for at least 5 years initially before making any withdrawal

Fidelity Roth IRA is an excellent choice for beginner investors or anyone looking for their first Roth IRA. It offers one of the best self-directed investment platforms, with a wide variety of investment options, and minimal trading fees. 


From tax advantages, maximum contribution, and fees, here are some details that can convince you to consider a Roth IRA. 

Tax advantages: The concept behind Roth IRA is that you make contributions to this account with after-tax money. Once you turn 59½ and have been in a Roth IRA plan for five years, all distributions taken from the plan are tax-free. You can withdraw your contributions without incurring any tax or penalty expenses at any time. 

Maximum contribution: $6,000 ($7,000 if age 50 or older)

Income requirements: In 2021, the upper limits for investing are $125,000 for a single person or $198,000 for married people filing jointly.

Minimum investment: There is no minimum to open the account

Investment options: Fidelity Roth IRA is great for independent investors who want to access a wide range of investments. With Fidelity, you get access to trading stocks, bonds, options, and a vast choice of ETFs. You also get access to great mutual funds both from Fidelity and non-Fidelity.

Support & guidance: When it comes to investing, you are responsible for choosing and managing your investments. Great thing is that you can access all the tools and information that the platform provides.

For the Fidelity Roth IRA, investments are managed for you, using your goals and risk tolerance set in your digital account. You still get to access Fidelity’s information repository, as well as a Fidelity advisor whenever it’s necessary.

Fees: There is no opening cost, closing cost, or annual fee, and offers $0 commission 

Why choose Fidelity Roth IRA?

Beginner-friendly: Fidelity has invested heavily in the platform’s infrastructure to make it easy for customers to find tools and features. Fidelity provides access to a well-developed information section, which builds the confidence of customers who are new to investing.

The platform also makes investing easy through user-friendly layouts for making orders.

No minimum or recurring fees: Fidelity Roth IRA does not charge for account opening or annual fees. The account also offers low transaction fees using an order-routing technology that reduces transaction costs by seeking out price improvement.

Extensive and complete trading tools and resources as a full-service broker: Fidelity Roth IRA offers investors abundant online help and a well-versed chatbot that can respond to any customer queries.

One of the best commission structures at $4.95/trade: Fidelity Roth IRA offers one of the lowest fee structures in trading, at only $4.95 per trade for ETFs, options, and stocks. They also have many commission-free mutual funds to invest in.

Flexible investment types: Fidelity allows you to trade in virtually any type of investment available on Roth IRA.

No expense ratio for mutual funds: 4 of the mutual funds that Fidelity offers have no expense ratio. This means that you can invest in these mutual funds and manage them in your account at zero fees.

Local branches availability: Fidelity has over 140 branches in major cities across the country in case you need hands-on customer service.

Where Fidelity falls short 

Higher fees for some of the mutual funds: Of all the mutual funds available for investing in Fidelity Roth IRA, only 4 of these funds have zero-commissions. However, all other mutual funds attract a $49.95 fee per trade.

Higher pricing with robo advisor competitors: To access robo-advisor services, you pay a 0.035% per annum management fee and the minimum initial investment has to be $5,000 

With Fidelity Roth IRA, you don’t have access to options such as Forex, Crypto, and other riskier assets

Fidelity vs other investment firms


  • Unique feature: Availability of extensive information and resources to learn to trade
  • Commission: 0%
  • Best For: Beginners interested in different investing options

Charles Schwab

  • Unique feature: Access to a robo advising services at no extra management fee
  •  Commission: 0%
  •  Best for: Beginner and advanced traders seeking for no-minimum index funds

TD Ameritrade

  •  Unique feature: Offers a combination of platforms that allows both beginners and experienced traders to access their investments
  • Commission: 0%
  • Best for: Active investing and trading


  • Unique feature: Traders have access to automated investing and managed portfolios through robo advising
  • Commission: 0.25%
  • Best for: automated investments that balance a portfolio over time


  • Unique feature: Easy investing experience offered through mobile and web platforms.
  • Commission: 0%
  • Best for: Active investing

Best Roth IRA IN 2022

Fidelity Roth IRA tops the list of best Roth IRAs in 2022 for several reasons. The account offers commission-free trading for stocks, ETFs, and more than 3,400 commission-free mutual funds.

In addition to offering the best trading platform with lots of information and research on investments, investors can access a tool suite of calculators and software to help in improving their investments and achieve their retirement goals. These tools include the Fidelity Spire app and Retirement Score Calculator.

When investing in Fidelity Roth IRA, mutual funds are obviously the best investment option to take. One of Fidelity’s solid mutual funds is the Fidelity 500 Index Fund (NASDAQMUTFUND: FUSEX) which has one of the lowest expense ratios of 0.010%.

Individual stocks are the second-best Roth IRA investment. However, it’s necessary that you go for those with high growth potential, even though they may not work out as you expect. 

Other things you need to know

Is Fidelity good for Roth IRA?

The Fidelity Roth IRA ranks as the best for various reasons. First, Fidelity Roth IRA accounts have no minimum account balance or any recurring account fees. The account also offers more than 3,400 mutual funds that attract zero transaction fees and commission-free trade on ETFs and stocks. 

How much does Fidelity charge for Roth IRA?

Fidelity Roth IRA has no opening cost, closing cost or annual fee. In addition, there are no commissions for online stocks, ETFs, and options trades.

How is a Roth IRA different from traditional IRA?

A Roth IRA and Traditional IRA are both great accounts to consider for retirement investing. However, there are key differences between these two accounts that are notable.

While Roth IRA allows you to make after-tax contributions, you can make pre-tax contributions with a traditional IRA.

A Roth IRA is suitable for an investor who expects to be in a higher tax bracket at the time they start making their withdrawals. On the other hand, a traditional IRA is great for an individual who expects to remain in the same tax bracket when starting to make the withdrawals.

The only downside to a Roth IRA is that, unlike in traditional IRAs, there is a cap to the maximum contribution amount allowed.

Does Fidelity Roth IRA payout interest rates?

Fidelity Roth IRA does not pay out any interest as it is not like other traditional savings accounts that are set up in the banks. Fidelity Roth IRA is a type of investment account that holds assets and earns returns depending on how the assets perform.

Who is eligible to contribute to a Roth IRA?

For you to contribute to Roth IRA, you must have earned income. If you are married, you can make spousal contributions even if your spouse does not have earned income.

However, you cannot contribute to a Roth IRA if your income exceeds $140,000. For people under 49 years or younger, you can only contribute up to $6,000. For people above 50 years, the limit to your contributions is $7,000.

What is a Roth Conversion?

A Roth conversion involves making a withdrawal on your 401(k) and traditional IRA and converting it into a Roth. Ordinary income taxes are incurred on the withdrawal amount, but you do not incur early withdrawal penalties.

Roth conversion works for investors who want their income to grow tax-free. 

Anyone can convert their IRA assets to a Roth IRA, regardless of income or marital status.

How much should you consider converting? 

With a conversion, you pay income taxes on the conversion amount. That’s why when determining how much to convert, you have to consider how much money you have saved in non-retirement funds to pay the taxes. Fidelity also suggests converting over a number of years in amounts that will keep your income from the conversion within your current federal tax bracket or within your desired bracket. 


If you are just starting to plan out your retirement plan, Fidelity’s Roth IRA is the best choice for you: it does not have a minimum deposit account and it does not require account opening or maintenance fee. 

Fidelity Roth IRA investment account offers you a unique opportunity to invest in a wide variety of Fidelity investments and manage them all on your own. With the ability to invest in multiple trading options and accrue tax-free income, Fidelity Roth IRA is a great way to invest in your retirement while avoiding high tax liability that other investment options present to traders.

To learn more about financial planning, retirement plans, and a wide range of investment products, subscribe to our newsletter.

Related: Top 9 Fidelity Funds for Retirees

The 10 Best Vanguard Funds for 2022

best vanguard funds to buy now

For people looking to diversify their assets, investing in Vanguard Funds is a good option. The Vanguard Group, an American registered investment advisor, has provided mutual funds and index funds to millions of investors in the past. It is known to promote low-cost, beginner-friendly investment for individuals with little to no knowledge about the trade.

If you wish to know more about earning additional income through investing in bonds and index funds, this article is right for you. We will help you identify the best Vanguard Funds buy and hold this year. Also, we clarify how each type of index fund.

What Are Vanguard Funds?

Vanguard funds are a type of index funds managed passively through a so-called index-sampling strategy where it tracks a benchmark index. This index is a list of companies grouped based on specific categories like geography (domestic, regional, international) or size (small-cap, mid-cap, large-cap). Vanguard earns money by charging expense ratios which is a fee paid by clients in exchange for the company’s job of managing the index funds for them.

Many investors choose vanguard because they are known to offer one of the lowest expense ratios in the market today. Also, even with a little money you have, you can create an investment. Businessmen like Warren Buffett, who is the CEO of Berkshire Hathaway as well as dozens of other companies, advocates the use of Vanguard funds because it brings investment to the masses. Investment advisors like this company make it easier for lay citizens to dabble in the world of investment.

Vanguard is the world’s largest issuer of mutual funds and is the second-largest issuer of exchange-traded funds (ETFs). Investors who buy from Vanguard are not charged with fees or commissions. Instead, they have to pay for the so-called expense ratios. The expense ratios for mutual funds and ETFs are calculated by computing the operating costs of the fund and divide them by the assets under management (AUM).

For many investors, Vanguard’s low expense ratio is the reason why the company is the best investment advisor there is. To give you an idea, the company’s expense ratios for its mutual funds are around 80% less than what other companies offer. For those who wish to keep their investments for the long term, they could save thousands of dollars in a 5-year or 10-year average.

Aside from saving fees, the ETF and mutual funds sold by Vanguard are often cited as profitable. Anecdotes from individuals who have invested through Vanguard swear by the efficiency and effectiveness of Vanguard as an advisor. People looking to diversify their savings or retirement funds choose to invest in this company.

Top 10 Best Vanguard Funds for 2022

When is the perfect time to save? The answer to this question is always now. Admittedly, there is so much to unravel and understand when it comes to investing. Terms like stocks, mutual funds, government bonds, and many others are a challenge for individuals who do not have prior experience in investing.

Lack of knowledge on stocks, ETFs, and mutual funds should not deter you from starting to build your investment portfolio. In fact, financial advisors recommend individuals to start investing in small-cap to mid-cap funds this year. Do not be content with paying off debts on your credit cards or buying real estate properties. Vanguard funds below are a good starting point in starting your investment journey.

To use Vanguard funds is to choose one or two of the many index funds they offer. As an investor, you can choose which fund you think will give you the biggest return in the long term. In spite of this, it is important to remember that choosing one specific type of ETF is like betting on a particular industry or stock market niche. Hence, it is important to choose an ETF that you think will have a good performance in the long term.

1. Vanguard Dividend Growth Investor (VDIGX)

  • Type: Dividend growth
  • Market value: $40.8 billion
  • Dividend yield: 1.7%
  • Expense ratio: 0.22%

Investors earn some income by being exposed to dividend-focused companies from various industries based in the United States. The fund tracks the performance of high-quality companies that are known to have the ability to grow their dividends in a certain period of time. The risk of VDIGX is that it is fully exposed and dependent on the domestic stock market. A downfall in the domestic stock market could mean a loss to the investors of this fund.

Investment advisors often claim that investing in the Vanguard dividend growth fund is the best choice one can make this year. It is the best actively managed dividend growth funds in the market today. It is more stable than other funds in this list, which means less risk to you as an investor. The minimum investment for this fund is $3,000.

2. Vanguard Dividend Appreciation ETF (VIG)

  • Type: Dividend growth
  • Market value: $51.1 billion
  • Dividend yield: 1.7%
  • Expense ratio: 0.06%

This fund tracks the performance of the NASDAQ US Dividend Achievers Select Index, which is previously known as the Dividend Achievers Select Index. Somehow, it is similar to the approach of VDIGX. The only difference is that this ETF mainly relies on the rules-based system. Human managers play a very little role when it comes to managing it. Choosing between VIDGX and VIG is a matter of choosing between human controllers and a rules-based control system.

3. Vanguard Short-Term Investment-Grade Investor (VFSTX)

  • Type: Short-term bond
  • Market value: $61.5 billion
  • SEC yield: 2.2%
  • Expense ratio: 0 .20%

While the first two funds have more risk, more reward approach, this index fund is particularly notorious for having less risk and less reward. It is a short-term fund that invests in high- to medium-quality, investment-grade bonds with short-term maturities. It invests primarily in corporate bonds, U.S. government bonds, and pooled consumer loans.

This investment is for individuals who have short-term savings goals and who are willing to see only a minimal price movement. The minimum investment for this fund is $3,000. Meanwhile, the fund advisor is Vanguard Fixed Income Group.

4. Vanguard Limited-Term Tax-Exempt Investor (VMLTX)

  • Type: Limited-term municipal bond
  • Market value: $29.5 billion
  • SEC yield: 1.3%
  • Expense ratio: 0 .17%

This one is considered as a low-cost municipal bond fund that wishes to have an income exemption from federal taxes. It has an index of more than 6,000 municipal bonds. Investors of this fund face minimal risk, especially that municipal bonds are less likely to default than corporate bonds. Oftentimes, it is chosen by groups and individuals who belong to higher tax brackets.

The minimum investment for this fund is $3,000. Also, the fund advisor is Vanguard Fixed Income Group. If you wish to save on the expense ratio, you can choose Admiral Shares (VMLUX) instead.

5. Vanguard Health Care Investor (VGHCX)

  • Type: Health sector
  • Market value: $47.5 billion
  • Dividend yield: 1.1%
  • Expense ratio: 0 .34%

This is an actively managed fund that has been in existence for more than two decades now. It is a low-cost index fund that tracks the performance of domestic and international companies belonging to the healthcare industry, which includes medical research facilities, medical supply companies, and pharmaceutical firms. One advantage of this fund is that it has geographical diversity as it invests in companies based in various parts of the globe.

Meanwhile, one downside of this investment is that investing here means investing solely in the health care sector. A good way to balance this out is to invest in other sectors. This fund is best for those who have a diversified portfolio with a long-term horizon. It remains one of the best actively managed funds offered by Vanguard. By the way, the minimum investment here is $3,000.

6. Vanguard Wellington Investor (VWELX)

  • Type: Balanced
  • Market value: $110.7 billion
  • SEC yield: 2.3%
  • Expense ratio: 0 .25%

This one is considered the oldest mutual fund offered by Vanguard. It is an investment to both stocks and bonds in various economic actors. It is particularly known for having a broad diversification and a well-balanced asset class. It has a medium risk and medium reward scheme.

Take note that you can only buy this fund directly from Vanguard. The minimum investment fees or amount here is $3,000. Also, for this mutual fund, Wellington Management Company LLP will serve as your fund advisor.

7. Vanguard Total Stock Market Admiral (VTSAX)

  • Type: Large blend
  • Market value: $874.5 billion
  • Dividend yield: 1.7%
  • Expense ratio: 0 .04%

It is considered the biggest index fund offered by Vanguard. Hence, for some, it is the best vanguard you can buy any day. This fund exposes investors to the entire United States equity market, which includes small-cap, mid-cap, and large-cap stock funds. It is mainly for investors looking for a low-cost investment who are willing to bet on the U.S. stocks market.

This is popular because it is low cost, has a broad diversification, and can be efficient when it comes to tax. It has a relatively high risk and high reward capacity. Also, it has a very low expense ratio. Note that you have the option to buy this as an ETF.

8. Vanguard International Growth (VWIGX)

  • Type: Foreign
  • Market value: $38.8 billion
  • Dividend yield: 1.2%
  • Expense ratio: 0 .45%

While VTSAX focuses on the domestic market, this International Growth Fund focuses on non-American companies with high growth potential. Investors are apprehensive to invest in this fund because it is less stable than the domestic fund. On the other hand, it is a good choice for those wanting to be less dependent on the U.S. economy.

This is an aggressive type of investment. But don’t worry because the 10-year average of the fund has been nothing but positive. This is mainly because of the fact that companies overseas have been growing in the past decade. Its 10-year average return is at 10.38% while its 5-year average is at 16.25%.

9. Vanguard S&P Small-Cap 600 ETF (VIOO)

  • Type: Small-cap stock index
  • Market value: $1.1 billion
  • Dividend yield: 1.4%
  • Expense ratio: 0 .15%

This ETF tracks the performance of stocks belonging in the S P Small-Cap 600 index, which is a list of 600 small companies based in the United States. Notably, the share value of this fund fluctuates abruptly compared to bond funds. Investing here is best for those who have long-term goals and are willing to face high risk and high reward.

It is an aggressive type of investment. People investing here are often individuals who believe in the capability of the US stock market index fund. Investment advisors suggest that investors should purchase this ETF because it will continue to continue growing in the long term. To give you an idea, the top 3 of its largest holdings as of October 2020 are NeoGenomics Inc., Kinsale Capital Group Inc., and Inc.

10. Primecap Odyssey Stock (POSKX)

  • Type: Large blend
  • Market value: $10.8 billion
  • Dividend yield: 1.0%
  • An expense ratio of 0. 66%

For those looking for a Primecap product from Vanguard, POSKX is a good chance for new investors to get one. This fund is managed by various fund managers. Most of the stocks of this fund are invested in the technology and health care industries. Hence, investing in this fund is risky, but on many occasions, the gains are big too.

Investing in this is not as affordable as investing in other actively managed funds of Vanguard. Despite this, some advisors claim that the 10-year average return of this fund is expected to be high.

Bottom Line

Vanguard index funds have been offering affordable and reliable options of investment for the general American population in the past decades. People who wish to diversify their investment portfolio choose to get one or more of the ETFs offered by the company.

It is noteworthy too that aside from investors belonging to a high tax bracket, there are also vanguard index funds sold made for just looking for minimum investment options or those who have bit built an investment portfolio.

Also, take note that the 10 index funds discussed above are only the top best choices of index fund investment in 2022. Needless to say, Vanguard has a long list of other products with the potential to become a high growth index fund.

It includes Vanguard 500 Index Fund Admiral Shares (VFIAX), Vanguard Total International Stock Index Fund Investor Shares (VGTSX), Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX), and Vanguard Total Stock Market Index Fund Investor Shares (VTSMX). These Vanguard index funds can also be a good investment in the next months or years to come.

Understandably, the topic of investing is difficult to understand. If you wish to learn more about Vanguard index funds, the fees associated with it, and the expense ratio tied to these funds, browse more of our articles on Investoralist.

Admittedly, one article will not provide you with all the information you need to fully understand the concepts of investing. Our website is dedicated to helping you not only on the topic of investment but also on other financial topics of retirement funds, mutual funds, real estate, credit cards, credit score, target retirement funds, and many more.

The World’s Top 10 Investment Banks 2022

top 10 investments banks

If you think of banks, you tend to think of financial institutions where you get to store your money which you eventually withdraw at a given time. But, there is another type of bank that not only stores your money but also grows it. These are the so-called investment banks.

Compared to commercial banks, investment banks could provide small and growing businesses as well as individuals with high net worth to invest and help raise money to a company while also taking a stake in the company. Though complex, dealing with investment banks can be financially rewarding.

To know more about investment banking, read about the top 10 investment banks in the world. We chose them based on various criteria, including revenue number, global reach, employee headcount, income, etc. Note that not all investment banks are made equal. If you wish to deal with one in the future, you should research more on which of these institutions fit your profile as an investor.

Goldman Sachs Investment Bank

1. Best All in All: Goldman Sachs

One of the Top 10 is Goldman Sachs which is an investment bank based in New York City. It is an American international company that also offers financial services to its clients. Aside from investment management, Goldman Sachs offers services in asset management, securities, securities underwriting, and prime brokerage.

With about 150 years of experience as a financial institution, Goldman Sachs is one if not the largest investment bank in the world. In 2019, the company earned a revenue of US$36.546 billion while its total assets were recorded at US$992 billion. In terms of awards, Goldman Sachs was ranked by Fortune as the 62nd largest US corporation with total revenue.


JP Morgan Chase Investment Bank

2. Best from a Big Institution: JP Morgan Chase

JP Morgan Chase is an American investment bank based in New York. It is considered a global leader in the investment banking industry as it has one of the largest client bases in the entire world. Today, the company has around 200,000 clients ranging from governments, corporations, educational institutions, banks, and individual investors. They have a global reach expanding to around 100 countries.

In 2019, the company reached a revenue of around US$115.6 billion. Meanwhile, they had a net income of around US$36.43 billion. With around 200 years of history, JP Morgan has received awards from groups advocating for women, people with disability, veterans, and many more. Without a doubt, the company is one of the largest investment banks in the world.


Barclays Investment Bank

3. Best in Europe: Barclays

Barclays is a British multinational investment bank with more than 325 years of history in banking. It operates in more than 40 countries and has around 80,000 employees tasked to provide service to the clients. While Barclays does not have a global reach as wide as the first two investment banks, it is considered as the best in Europe. Its headquarter is in London, England.

In 2019, the company had a revenue of around US$28 billion. Because of its excellent service in its electronic trading platform, the company won the Electronic Platform of the Year award from the GlobalCapilta Americas Derivatives Awards 2019. Today, the company continues to grow its reach not only in Europe but also in Northern America and Asia.


Bank of America Investment

4. Best for Innovation: Bank of America Corporation

The Bank of America Corporation is best known for bringing innovation to the field of investment banking. It is an American multinational investment bank based in North Carolina but has central hubs and offices in New York City, London, Hongkong, Dallas, and Toronto. This bank has brought innovation by merging and partnering with other top financial institutions, including Countrywide Financial and Merrill Lynch, to name a few.

The company earned revenue in 2019 amounting to US$91.24 billion. The company was awarded as Top Global Bank on Fortune’s “Change the World” list in 2020. Its quality service in other parts of the globe has also received recognitions. In particular, it was awarded by Euromoney the Best Transaction Services Bank in Latin and North America this year.


Morgan Stanley Investment

5. Best for Markets: Morgan Stanley

Also included in the top 10 of the global investment bank is Morgan Stanley. It is known for its effective and successful contribution to the growth and development of the capital markets as well as its effective and efficient wealth management. It is an American multinational investment bank that also offers financial services. Its headquarter is located in Manhattan, New York City. Currently, Morgan Stanley is found in more than 42 countries in the globe employing more than 600,000 individuals from various nationalities. It offers services, including investment management to different types of clientele, including governments, business institutions, and individuals.

Morgan Stanley gained revenue of US$41.4 billion for 2019. In the same year, it was awarded the title of World’s best bank for markets by Euromoney. According to the award-giving body, Morgan Stanley has shown resilience in spite of problems in the market. It was able to provide growth in the investment of its clients or customers.


Deutsche Bank Investment

6. Best for the Asia Pacific: Deutsche Bank

Another prime investment bank is Deutsche Bank which is a German multinational investment bank based in Frankfurt, Germany. It has offices found all over the globe including in Europe, the Americas, and in Asia. In 2019, Deutsche Bank has earned US$26.3 billion. Its great work in the Asian market has won the company Top 1 in Best Investment Bank for Financial in the Asia Pacific from the business intelligence firm Coalition.

With around 150 years of history, Deutsche Bank has proven its strength in traditional fields of investment banking including financing, advisory services, fixed income, and currencies. Aside from doing well in Asia, Deutsche Bank is one of the top 4 investment banks in Europe. This indicates its capability to satisfy its clients from all parts of the world.


Citi Group Banking

7. Best for Inclusive Investment Banking: Citigroup

Probably known for being the largest credit card issuer in the world, Citigroup is also one of the most reliable financial institutions in the field of investment banking. It is an American multinational investment bank based in New York City. In 2019, it had revenue of US$73.29 billion with as many as 204,000 employees as of June 2020. It provides strategic and financing products and advisory services to corporations, governments, and private businesses to more the 160 countries.

Citigroup is best known for being a haven for customers from all walks of life. It is friendly to even to young, women, racial minorities, and many more. It has been recognized as one of the Most Community-Minded Companies in America since 2012. With such an accomplishment, no wonder new clients continue to choose this company for their investment banking needs.

Credit Suisse Banking

8. Best for Modern Investment Banking: Credit Suisse

Credit Suisse is a global investment bank founded and based in Switzerland. It is particularly popular for its strict bank-client confidentiality and banking secrecy. For clients who do value their privacy, choosing Credit Suisse is the best choice. It has proven excellent services in wealth management and capital markets especially in South East Asian countries as proven by the recent accolades it has received.

The company earned US$24.63 in 2019. Meanwhile, in 2020, Credit Suisse received the award of being the Investment Bank of the Year from The Banker besting all investment banks in the world in 19 different product areas. The Banker said that the decision was because “Credit Suisse ticks all the boxes of what a modern investment bank should be focused on.” This investment bank was able to make sustainable banking for its clients.


UBS Group AG Investment Bank

9. Best for Secured Investment banking: UBS Group AG

Like most Swiss global investment banking companies, UBS Group AG puts secrecy and confidentiality its priority. It had a revenue of US$30.21 billion. The company is best known to provide access to capital markets for corporate and institutional clients. Aside from providing investment banking and investment management services, it also provides global wealth management.


HSBC Holdings plc Banking

10. Best for Sustainable Finance: HSBC Holdings plc

HSBC Holdings plc is a British multinational company offering services on investment banking, wealth management, and many more. It is considered as the 6th largest bank in the world as of 2020. In 2020, it had a revenue of US$56.1 billion. Also in the same year, this investment banking company was awarded by the Euromoney Awards for Excellence for sustainable finance as well as the Banker Investment Banking Awards with Investment Bank of the Year for Sustainability.


It is true that looking for a trusted investment banking company can be daunting and exhausting. We have to make sure that we choose the best investment bank that provides services deserving of our hard-earned money.

To begin your search, you can start with these top ten investment banking corporations. They have provided outstanding services to thousands of customers in the past decades.

Be sure to research more about deciding which of these investment banking companies is right for you. Note that customers have different demands. Make sure that your bank of choice can accommodate your needs and wants.

Fidelity Go Review: Best for Low-cost Choice for Investors

Fidelity Go Review

Robo-advisors are the future of tech-led investment ventures, and the Robo-advisor Fidelity Go has become enormously popular among many US investors from all walks of life. Truthfully, Fidelity’s popularity began with its affordable, virtually zero-commission mutual funds and high-return indexes.

Today, its user-friendly investment platform has become widely popular. Many of them swear by its simplicity and accessibility, thanks to its low to zero minimum balance requirement.

If you’re looking for excellent Robo-advisors, then Fidelity Go might be your best bet. Read more about everything it can offer you in this in-depth Fidelity Go review.

For Clarity: What Type of Account is Fidelity Go?

Fidelity Go is an investment platform/Robo-advisor that acts as your investment manager, strategist, and financial planner. This financial technology will ask you about your investment preferences and then present a great number of investment strategies. It will recommend the best strategy for you using your answers to its questions.

Once you’ve decided, it makes all the effort to buy, sell, and manage your portfolio. You can view its overall investment progress through Fidelity’s dedicated website and application.

Most Robo-advisors use algorithms and complex machine-learning to adapt to certain situations. However, Fidelity has a human team of financial specialists who perform all adjustments and rebalancing fees accordingly. You can be sure it’s not a machine making big decisions for your money.

Why You Should Consider Using Fidelity Go

Any Fidelity investor of mutual funds should have a Fidelity Go account. Truthfully, anyone with an existing Fidelity account will find Fidelity Go an excellent companion investment to improve their existing portfolio regardless of the portfolio.

Fidelity Go is advisable for passive people who trust specialists but love the convenience of using Robo-advisors. Plus, it’s quickly accessible for anyone because of its $0 starting account management fee. As long as your account isn’t earning anything beyond $10,000, you don’t have to pay anything yet.

Shortcomings That Can Put Off Some Investor

Unfortunately, if you are an investor with a high-risk appetite, you’re better off investing and managing your index and stock-based portfolio on your own. Fidelity Go prioritizes Fidelity’s Flex mutual funds in its entire portfolio. While it’s a well-diversified portfolio (as you’ll see in your investment charts), it will comprise Flex mutual fund, decreasing the portfolio’s full earning potential.

Our Advice: Fidelity Go is Excellent for Low-Cost Investment

It takes $0 to start a Fidelity Go account, but you’ll need to pay $10 to start your investment portfolio. Additionally, if you’re new to investing and growing your money, you can entrust its growth to an excellent Robo-advisor. This platform helps you identify your risk appetite and investment behavior, and the adjustment and rebalancing human oversight team take note of your preferences. Lastly, you only start paying fees after your account has earned beyond $10,000 starting from scratch.

Editor’s Rating: 4/5

Fidelity Go isn’t exactly perfect. However, its shortcomings are offset by its user-friendly platform, human-based adjustments and rebalancing, zero starting fee, and a low-risk investment portfolio. It can and will work for most investors who want to see financial growth with adequate guarantees and financial safeguards that their investment is in good hands.

‘Too Long, Didn’t Read’ Summary

Fidelity’s Robo-advisor Fidelity Go takes accessibility and hybrid fund management to the next level. It’s perfect for a first-time investor who has $0 to start an account and $10 to begin investing. Your annual fees only start once the account starts earning beyond $10,000. Plus, you won’t need to worry about complete machine management because a human team works behind the scenes in adjusting and rebalancing your fund to your preferences.

Fidelity Go: A Helpful Snapshot of Everything in Store

Here’s an overview of everything valuable and crucial you should know about Fidelity Go.

Account Minimum $0 to open. $10 upon investing
Account Management Fee No Advisory Fee: Below $10,000 account balance

$3 Monthly Fee: $10,000 – $49,999 account balance

0.35% Commission Fee: S$50,000 and above account balance

Investment Expense Ratios Included in management fee
Account Fees for Annual Transfer, Closing, and Others None
Portfolio Mix Fidelity Flex Mutual Funds


Lack of international bonds and non-market correlation assets (REITS, commodities, etc.)

Supported Accounts Individual and joint retirement accounts

IRA (Roth, Traditional, Rollover. US Only)

Tax Strategy No tax-loss harvesting available. Uses municipal bonds in tax-brokerage accounts.
Rebalancing Strategy Free. Human oversight monitors and adjusts rebalancing strategies accordingly not automatically
Options for Human Advisors None. Fidelity has an alternative Personalized Planning and Advise platform
Cash Management Account Option Fidelity has a separate cash management account, which they can integrate with Fidelity Go.
Customer Support 24/7. Monday to Friday live chat starting from 8AM-6PM EST

Things We Like About Fidelity Go

1. Competitive Fees

You can see everything about the account and its interface for just zero. You won’t even need to synchronize any account or register your credit card yet. However, once you agree to start your recommended strategy, you’ll need to pay $10, which isn’t a significant amount. Plus, you’ll only pay your $3 annual fees once your account starts reaching $10,000. The 0.35% account management fee only starts when your Fidelity account starts earning beyond $50,000.

2. Quick Start

We’ve mentioned it in the early sections of this review: Fidelity Go is the most feature and user-friendly platform we’ve ever seen. You won’t need to pay anything to start an account. To begin, you’ll need to fill up their quick signup form; then, you’re registered. Once they’ve identified the best investment strategy for you after you answer their interview questions, you can synchronize your deposit account to pay the initial $10. It’s that fast and easy.

3. No Minimum Deposits

Fidelity Go does not require you to make a deposit, which is especially helpful for those who want to look around first. You’ll only pay a single deposit of $10 to jump-start the Robo-advisor’s highly recommended strategy. Without huge minimum deposits, you can explore its investment options without fear of losing anything. Additionally, Fidelity Go starts charging fees only when it makes you profit $10,000 and beyond.

4. Synchronizes With Any of Your Existing Accounts

The investment platform can communicate and interface with virtually any US bank account. Therefore, if you intend to deposit pre-emptively when changing investment strategies or addressing recommended readjustment balances, you can quickly do so. Fidelity Go allows you to make deposits on its online platform and app too.

5. Significantly Low Annual Fees

If your portfolio is earning less than $10,000, Fidelity Go won’t charge you anything. Instead, it will keep executing its investment strategies (with humans making manual adjustment balances behind-the-scenes) and then charge you a small $3 annually once it goes beyond $10,000. Even if you reach the $50,000 threshold, the 0.35% management fees are tolerable considering the high profit you can receive.

6. Fee Transparency

Any time you are confused about your Fidelity charges and fees, their customer service department is fully transparent regarding its calculations. While it might take them some time to produce your information, Fidelity Go’s representatives can give you a clear statement that leaves you with a full understanding of your fee calculations, which is critical for budgeting and investing.

Generally speaking, Fidelity has an excellent customer service department to address all your needs.

Is Fidelity Go a Good Investment?

Fidelity Go is a great investment of your time and money. With $0 to sign up for an account and a small $10 fee to start your investment strategy, you won’t have anything to lose that Fidelity Go and Fidelity Investments did not produce through their account. You can open an account without hassles, and Fidelity offers the best investment possibilities with full integrity and transparency.

Can Beginners Quickly Use Fidelity Go?

Yes, anyone can use Fidelity Go, especially if they’re already familiar with the beginner-friendly Fidelity Investments. Success with Fidelity Go is enormous, especially for an investor who has a low-risk tolerance. Fidelity Go’s mutual funds-oriented financial planning strategies makes it an excellent choice if you need a safe haven to offset your other index and stock-oriented investments.

Areas For Minor Improvements

1. Lack of Tax-Loss Harvesting

All US investment portfolios will earn capital gains tax (CGT) depending on your time horizon. Short-term investment incomes incur up to 37% CGT. On the other hand, long-term investments, which Fidelity Go hugely encourages, have lower CGT at 20%.

Tax-loss harvesting is a fund manager’s automatic rebalancing method, enabling them to sell certain stocks and assets at a loss to cover CGTs. Fidelity Go does not have this automatic rebalancing, which means investors still need to calculate and deduct CGTs to learn their total net profit. With tax-loss harvesting, investors can save time and have clarity about their net profits.

2. Poor Integration with Fidelity Spire

Fidelity Spire can synchronize your bank accounts, just like Fidelity Go. However, you cannot integrate Fidelity Go with Fidelity Spire.

About Fidelity Spire: This app is Fidelity’s young professional-oriented financial planning application, allowing them to monitor their spending activities. Furthermore, it allows them access to limited investment vehicles and uses the same Robo-advisor algorithm as Fidelity Go. It’s free for anyone to use, and its interface is user-friendly and intuitive.

3. Focused Only On No-Commission Mutual Funds

Fidelity became widely famous because of its zero-commission Fidelity Flex funds, which attracted significant investors’ waves to use their services. However, mutual funds are a mixed bag that prioritizes risk-offsetting. Doing so limits all possible higher-stakes investments you can find in an exclusive index fund or ETF-oriented fund. However, anybody looking for stability will find it by investing in Fidelity Go.

Alternatively, the company offers an excellent index fund and high-risk appetite products, allowing you to use Fidelity Go as an excellent offset.

4. Limited Account Variety

Fidelity Go’s ultimate goal is to have you start making investments. To attract passive investors and present viable long-term investment strategies, it’s a cost-effective and low-risk proposition. However, it’s a “one-trick pony” because it’s the only purpose and objective Fidelity Go has.

We look forward to seeing some account variations, but we believe Fidelity has other high-risk tolerance products.

How Much Does Fidelity Go Cost?

Here’s Fidelity Go against other products with the same features, benefits, and service.

  Fidelity Go Betterment Marcus
Account Minimum $0 to Open. $10 For Investing $0 for Betterment Digital, S$100,000 $0 to Open
Fees 0.35% 0.25% n/a
Account Fees for Transfer Etc. None None n/a

Where Fidelity Go Truly Shines: Low-Cost Investment Management

Virtually every highly-interested investor is in a position of need with minimal cash available for investment. With zero account minimum to start using its services and just $10 to begin your investment journey, this investment platform is the most accessible for young professionals. Additionally, beginning investors and passive investors looking for safe havens that can offset their aggressive portfolios can use this to their advantage too.

Additionally, partnering low-cost investment management with low-risk mutual fund-oriented portfolios is a good thing for the wider beginner investment population. The passive investment style requiring no manual asset allocation will suit most traders who aren’t keen on paying attention to tickers and graphs for hours after work.

Is Fidelity Go Perfect For You?

No investment platform is perfect, and Fidelity Go has many personalities compatible with the majority of beginning investors. Additionally, if you’re someone looking for an investment with nearly-guaranteed investment outcomes in the next few decades, Fidelity Go is certainly your best bet. Truthfully, low-cost investment partnered with low-risk portfolios sound better than an insurance policy offering the same portfolio but with strict claim conditions.

Check out 7 Best Fidelity Mutual Funds to Buy and Invest.

Fidelity Go: Not Perfect But Effective and Affordable

Fidelity’s mutual funds-oriented Go platform isn’t perfect. It has a single goal: to get beginner investors and provide them with virtually-guaranteed results. Furthermore, it’s passive, but a human team of financial advisors is at the helm of all of its financial planning. It’s an excellent and effective product for investors with a low-risk appetite and has ample amounts to invest.

To find more review content about the best financial technologies, products, and services, Investoralist has a dedicated review section for all your needs. Our blog can give you ideas on your first investment journey too!

7 “Dave Ramsey Baby Steps” to Achieve Financial Freedom

Business Man Enjoying Financial Freedom

Want to achieve ultimate financial freedom? Finance guru Dave Ramsay has 7 simple steps that’ll help you get out of debt and get started on your journey to worry-free independence today.

Whether you’re one of Ramsey’s top listeners and number one fans, or you’ve never heard of the guy and are just looking to better balance your finances and build up some wealth, these tips will help you get started.

Who is Dave Ramsey?

Dave Ramsey is a widely respected financial expert and money management, guru. He’s a household name in the USA as far as business and investments are concerned. On his popular website, he describes himself as “America’s trusted voice on money and business” – and with an amazing “rags to riches” backstory behind his belt, we at Investoralist tend to agree.

By the time he was just 26, Ramsey had established a multi-million dollar real estate empire. In the late 1980s, however, he was forced to declare bankruptcy and had to rebuild his life from the ground up – something he achieved by creating Dave Ramsey s Baby Steps.

Dave Ramsey has dedicated his life to helping others achieve financial freedom. Over the years, he’s built businesses, shaped brands and established a huge fan following on US radio stations with millions of listeners.

He’s also authored several best-selling books, like Financial Peace, The Total Money Makeover and Dave Ramsey’s Complete Guide to Money – as well as set up the Financial Peace University (FPU), a widely-used initiative that helps people pay off debt.

How Can Ramsey’s 7 Baby Steps Help Americans?

Living in the amazing US of A doesn’t come cheap and few people are lucky enough to live a debt free life.

There’s no doubt we’ll all face a number of financial challenges during our lifetime. From expensive mortgage payments and raising money for a comfortable retirement, to saving for your children’s pricey college education and just keeping up with the bills, there’s a lot to stay on top of in everyday life.

That said, we think Dave Ramsey s 7 baby steps can work some real miracles, helping people to get out of debt, rise above financial limitations, consumer debt and wealth barriers and achieve more financial independence and control. Let’s take a look at how the 7 steps work.

The 7 Dave Ramsey Baby Steps Explained

So, what are the 7 steps? And what can Americans do to get started today? Let’s take a look in closer detail, one at a time (or baby step by baby step).

Baby Step 1 – Save $ 1 000 for Your Emergency Fund

Between credit card debt, mortgage payments, everyday living costs and other outgoings, the average American simply does not have enough spare money to shell out in the event of a financial emergency – and this can be a real problem.

What to do: For baby step 1, Dave Ramsey recommends setting aside a small amount of money each month to kickstart an “emergency fund” as early as possible in life.

Right now, it probably seems unrealistic to save up enough spare cash to cover 6 months of expenses at the drop of a hat, but by building up a $ 1 000 reserve sooner rather than later, most Americans can get started with bettering their personal finance today, improving their ability to control an unpredictable situation in the near future.

How to make it work: If $ 1 000 sounds like a lot of money, think small to make it work. Selling old belongings on sites like eBay or Amazon, eating out less and downloading specialized money saving apps to help you monitor your spending can help you build up that $ 1 000 reserves faster than you might think!

Make sure to opt for a savings account that pays the highest possible interest on your stored-away money, too – as this can greatly help to ensure that your emergency fund builds up super-fast, putting you in a much better situation as far as finance is concerned.

Baby Step 2 – Pay Off All Debt (Except the House) Using a Debt Snowball

Of all the steps in this list, baby step 2 is one of the most ambitious – but that doesn’t mean it’s not achievable. After all, we’re talking about tried and tested techniques created by the man behind the Financial Peace University here!

If you’re following the steps in order, you should already have a $1,000 emergency fund set up by now and be beginning to realize that taking back control of your finances is easy if you take baby steps.

What to do: For baby step 2, Dave Ramsey recommends using what he calls the “debt snowball method” to start paying off each and every debt to your name one by one, little by little. This involves imagining your debts as a snowball rolling down a hill, starting off small but gathering more snow (or debt) as it rolls.

How to make it work: Using this debt snowball idea and applying it to each debt you have on record, you can pay off smaller debts first, add the freed-up cash to the minimum payment of the next debt, and so on. Now, the snowball method certainly takes some practice, but once you’ve started using the debt snowball in day-to-day life, it’s easier (and faster) than you’d expect to start making a big difference to your finances. Will baby step 2 pay off? We certainly think so.

Baby Step 3 – Save 3 to 6 Months of Expenses in a Fully Funded Emergency Fund

Once you’ve waved goodbye to all that debt, it’s time to save, save, save. Your starter emergency fund you set up in baby step 1 should have already helped you save $ 1 000 (if not more, if you’ve been smart enough to use a savings account that gains plenty of interest).

From now on, you need to supercharge those savings to enable you to control 3 to 6 months of expenses in the event of an unforeseen personal finance emergency.

Now, as we’ve seen with COVID-19 and the recession of 2008, unprecedented world events that can take a serious toll on your finances are far from uncommon – and almost never predictable. This is why it’s absolutely essential to ensure you’ll fall on your feet in times of crisis, whether that crisis be a lost job or a national emergency.

What to do: In baby step 3, Dave Ramsey advises single-income families to aim for the “six months of expenses” mark – which can be reduced to “3 months of expenses” for dual-income households, if needs be. That said, it’s always best to aim higher.

How to make it work: One way to achieve this is to normalize an attitude of saving in your day-to-day life. Use money saving apps as much as possible, track your spending on Google Docs and try to better your targets month-on-month, eat at home as much as you can and be sure to raid those coupon books at every given opportunity. Oh, and be sure to use a high interest rate savings account again!

Baby Step 4 – Invest 15% of Your Household Income in Retirement

With the average American working until they’re 66 years and two months old, saving for retirement is often the last thing on most people’s minds – but Dave Ramsey thinks that this attitude needs to change.

What to do: Baby step 4 is all about abandoning that “tomorrow’s problem” mentality and putting at least 15% of your household income aside each month to help finance your later years in a comfortable way. After all, with 66 years of work behind your belt, you’re going to want to relax!

Once paying off debt has become a thing of the past, there are a number of ways you can supercharge your retirement savings.

How to make it work: Baby step 4 recommends closely scrutinizing your employer’s 401(k) and completely maxing-out the amount of contributions you can deposit into this fund. In most cases, you should be able to drop in up to $18,500 per year of your own money but using Roth IRAs could help to boost this by $5,500. You can also maximize your Roth IRA account by learning how Stash can help you save for retirementStash Retire is a great idea for people who are just starting to expose themselves with investments.

If you’re a bit more ambitious – which you should be – you can also follow the principles of best-selling other and finance guru Chris Hogan, who advises savers to set a Retire Inspired Quotient (R:IQ), which is a kind of savings and retirement age target that Americans can work towards using Chris Hogan’s intuitive retirement calculator.

Just like with other savings accounts, having targets, goals and ambitions and visualizing what you need to do and how much you must save to achieve them can work wonders, as can using Roth IRAs.

Read more: Roth IRA Charles Schwab Review

Baby Step 5 – Save for Your Children’s College Fund

That’s right – baby step 5 is also all about saving! But this time Dave wants you to save big to help fund a debt free college education for your children.

Now, obviously if you have no children and are simply aiming to accumulate wealth for yourself, or yourself and your partner, you can skip this one out. But with average undergraduate tuition fees in the US ranging anywhere from $17,797 to $26,261, putting some money aside for your children’s college education is absolutely vital if you don’t want to end up burdened with credit card debt and other debt when your kids hit their teenage years. Unless you’d rather see them saddled with student loan debt for years to come?

What to do: It goes without saying that we all want the best for our kids and one way to achieve baby step 5 is to open an Educational Savings Account (ESA) or a 529 college savings fund, depending on which feels like the best fit.

Contrary to popular belief, it’s entirely possible for your children to bag a college diploma or degree without breaking the bank.

How to make it work: Save as much as you can from as early as you can and consider in-state and community college options with lower average fees to save yet even more money in this area.

Dave advises savers to follow baby step 4, baby step 5 and baby step 6 simultaneously – but be sure to initiate each step in the proper order to achieve ultimate freedom and control.

Baby Step 6 – Pay off Your Home Early

Outside of credit cards, car loans and regular household bills, mortgage payments are pretty much the top debt most Americans are dealing with on a day-to-day basis.

Recent estimates suggest the average US citizen shells out around $1,400 per month on mortgage payments. But the thing about buying a home is, once you’ve made all of those payments, that real estate is 100% yours. Forever.

While it might seem like pie in the sky thinking today if you’ve only just stopped renting and found your feet on the property ladder, it’s nowhere near impossible to pay off your home – it just takes a bit of strategizing and dedication.

What to do: Use refinancing options in your favor, save wisely and there’s no reason why you can’t shave valuable years off of your mortgage-paying life.

Maybe you could switch from a 30-year to a 15-year mortgage and take a second job to make the repayments, or perhaps your home has increased in value, enabling you to refinance onto a much better deal.

How to make it work: Dave’s top tip for baby step 6 is to make one additional mortgage payment in each quarter. This enables you to pay off your home faster using the extra cash you’ve managed to save by studiously following all the other steps.

Over the course of an average mortgage, just one extra quarterly payment could get you 11 years closer to financial independence, saving you upwards of $60k in interest payments in total!

Baby Step 7 – Build Wealth and Give

Now, by this point you should be very familiar with the fact that Dave Ramsey is all about giving and sharing, so it should come as no surprise that baby step 7 wants you to give, give, give!

Once you’ve managed to fully succeed with baby step 1 to 7, debt is a thing of the past and you’ve no more house payments or credit card bills holding you back, Dave suggests you start thinking about generosity.

What to do: After having worked so hard that you’ve achieved ultimate financial control and independence, you can start sharing that extra cash with friends, family members, charities or even your local church – and start helping others to accomplish their dreams too.

How to make it work: Baby step 7 can be initiated using a combination of everything you’ve learned so far. Max out those Roth IRAs, that 401(k) and those retirement fund contributions to help your wealth grow in a snowball method style.

Then simply kick back and enjoy the beautiful feeling of easy generosity – i.e., “build wealth and give”, as Dave would say.

Achieve Full Financial Control and Freedom with the 7 Steps Today

So, we’ve shared the knowledge – now it’s time for you to put these steps into action.

We understand that it can be quite a journey to go from saving an initial emergency fund of $ 1 000 to ramping up your retirement fund savings for baby step 4.

It can take even longer to pay off your home for baby step 6 and eventually achieve ultimate financial control for baby step 7.

Nevertheless, we believe in you and we know you can master all steps – even that confusing debt snowball baby step!

With a bit of hard work and perseverance, Dave Ramsey himself has proven that virtually anyone can give themselves the total money makeover, pay off all debt and better balance their finances. The trick is not to expect miracles overnight. After all, they’re not called “big steps”, are they?

How Do I Start a Dave Ramsey Plan?

The key to success with Dave Ramsay s 7 baby steps is to follow each strategy slowly, in order and – most importantly – one at a time. We understand that despite their baby-ish name, these steps still appear intimidating at first glance, which is why you need to break your ambitions down into manageable, budgetable goals that work for you. As Dave would say, take one baby step at a time.

We’d recommend using money-saving apps or Google Docs to create a sensible budget, then simply following each baby step sensibly and slowly, without outdoing yourself.

How Do I Make Smarter Investments?

Here at Investoralist, we’re all about making investments easy. Ramsey s 7 baby steps are a great way to get started on your investment journey, but there are many other things you can do to improve your finance situation, from investing in stocks and shares, to trying out tax tips, venture capitalism and more.

Browse our diverse range of investment blogs and articles and make smarter investment and personal finance decisions today.