Markets· August 16, 2026 at 04:31 p.m.
Maximizing a Roth IRA: Three ETFs for Tax-Free Growth
Key takeaways
- VOO returned 317% over ten years at a 0.03% expense ratio
- DGRO raised its annual dividend from $0.66 to over $1.45 per share since 2016, compounding entirely tax-free inside a Roth IRA
- Fidelity counted over 559,000 IRA millionaires in Q3 2025
A Roth Individual Retirement Account (IRA) offers tax-free compounding of dividends, distributions, and capital gains over decades. The contribution limit for 2026 is $7,500 for savers under 50 and $8,600 for those 50 and older. Three low-cost ETFs are recommended for a diversified Roth IRA: Vanguard S&P 500 ETF (VOO), Invesco NASDAQ 100 ETF (QQQM), and iShares Core Dividend Growth ETF (DGRO).
