Anyway to invest in sector specific funds within IRA? (Ameritrade, mutual funds, fees)
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I've found some sector specific ETF's I really like such as WCLD. Vanguard and Fidelity don't seem to offer anything this granular so I'm stuck with VGT (mutual fund equivalent = VITAX), which is just a Nasdaq index fund. Is there anyway to invest in more specific funds within your IRA? I'm ok moving funds if needed. I know I can do it with after tax funds, but most of my money is in 401K/IRA.
at first, I thought you didn't understand the question, but it got me thinking, maybe I'm the one that's lost.
Looking at vanguard's web site, it seems that "maybe" I could move some funds into money market and then use those funds to purchase non vanguard ETF's or even individual stock. Since this is a "Traditional IRA", I'm not sure if this is possible, but just sent them an email asking...
So yeah, it was in front of me the whole time. I'm able to invest in individual stocks from my IRA account. This brings up another question. If you are able to buy any stock/fund in your IRA account, why would anyone want a mutual fund vs. the equivalent ETF? For example, VGT is an ETF and VITAX is the equivalent mutual fund. Since expense fees are the same, it seems you'd always want the ETF for flexibility - being able to buy/sell whenever the market is open vs. mutual fund where you're at the mercy of the closing price.
So yeah, it was in front of me the whole time. I'm able to invest in individual stocks from my IRA account. This brings up another question. If you are able to buy any stock/fund in your IRA account, why would anyone want a mutual fund vs. the equivalent ETF? For example, VGT is an ETF and VITAX is the equivalent mutual fund. Since expense fees are the same, it seems you'd always want the ETF for flexibility - being able to buy/sell whenever the market is open vs. mutual fund where you're at the mercy of the closing price.
I think it's just personal preference and convenience. I still buy mutual funds in my IRA. The dividend/capital gains reinvestment is automatic, and fractional shares are purchased. I don't really care what time of day I'm buying in (or selling), as I'm just dollar cost averaging at a periodic interval - twice a month.
But yeah, you should be able to buy and sell pretty much anything in an IRA at Vanguard, Fidelity, TD Ameritrade, etc.. You might have to get approval for certain trades though, like options.
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