Morningstar’s Christine Benz discusses with Scott Burns his top picks for funding an IRA before the April 15 deadline.
Burns Says: Right now what we are really looking at is the utility sector, and we think the best bet in there is actually the Utilities Sector SPDR. The ticker is (XLU). It’s a low-cost ETF. It charges 21 basis points, and it’s going to give you the utility portion of the S&P 500.
Burns Says: We really like the Vanguard Dividend Appreciation Fund, the ticker (VIG). We liked it last year; we liked it the year before. It performed extremely well. It was down in 2008 when everything was down, and it rallied in 2009, but it wasn’t down as much in 2008, and it wasn’t up as much in 2009.
See the full video and explanation below: