This ETF Could Help Grow Any Retirement Account
Your 401(k) or IRA could probably benefit from the addition of high-growth investments, but you also want to make sure you're not taking on too much risk with your retirement savings. Luckily, there are ETFs that will help your retirement account beat the stock market while providing protection against common threats that could sink your plan. Finding an ETF that's focused on the right stock market niche will set you up for larger assets and a better retirement a few decades down the line.
It's always important to balance growth and risk, so we have to recognize which parts of a portfolio are optimal for providing each. Your retirement account allocation should include some bonds as you get older, and it's probably a good idea to hold some stable value stocks, such as Dividend Aristocrats. These are useful investments to limit risk and reduce volatility, but you have to allocate a little more aggressively with other parts of your portfolio if you want to achieve high growth.
For that purpose, I'm only considering high-potential investments that I wouldn't plan to touch for multiple decades. I don't need to care as much about volatility in the short term or medium term, because I'm not planning on selling. That long-term potential should turn any bearish periods into temporary deviations from an overall upward trend. That's important because these investments will definitely be more volatile than an index fund.
Source Fool.com
