7 Best ETFs to invest in ROTH IRA Forever (Updated for 2026)
Summary
Nolan outlines a comprehensive strategy for investing within a Roth IRA, emphasizing that because growth is tax-free, investors should prioritize assets with the highest growth potential. He highlights that the current S&P 500 is highly concentrated (35% in seven stocks) and that the Buffett indicator is at a record high of 230%, suggesting a need for a more intentional ETF selection. Nolan proposes a tiered portfolio approach based on how many years an investor is from retirement.
Nolan's strategy is built around seven core ETFs, which he back-tested to show a 22.2% annualized return over the last decade, compared to roughly 10% for a traditional 60/40 portfolio. He categorizes these into core holdings, momentum tilts, growth accelerators, and safety diversifiers. The primary goal is to use the tax-free nature of the Roth IRA to capture high-octane growth from tech and momentum factors while adjusting for risk as retirement approaches.
Mentioned Stocks
Reasoning: Nolan views this as the essential foundation for any Roth IRA. It tracks the 500 largest US companies and provides a solid core with an 11% average historical return over 50 years.
Reasoning: Nolan calls this 'high octane growth' and 'pure conviction tech.' With a 25.43% 10-year annualized return, it is his preferred choice for aggressive technology exposure in a tax-free account.
Reasoning: Nolan recommends this for building tax-free passive income. He notes its strong dividend growth (8-10% annually) and solid 12.9% 10-year total return.
Reasoning: Nolan recommends this as a cheaper alternative to QQQ for growth exposure. It focuses on the NASDAQ 100 and has a 10-year historical return of 21.1%.
Reasoning: Nolan recommends this short-term Treasury ETF as a safety floor for investors near or in retirement, offering a 3.5% yield with almost no risk.
Reasoning: Nolan states he has been adding to this position 'like crazy' recently. He favors its momentum factor, which has historically outperformed the cap-weighted S&P 500, yielding a 19.5% 10-year return.
Reasoning: Nolan recently started a smaller position here for diversification against potential US dollar weakness and geopolitical shifts, despite international stocks lagging the US in previous years.