Quick Read
-
IWB tracks 1,000 large US companies at a 0.15% expense ratio, returning nearly 14% over the past year and 305% over 10 years.
-
A stepped-up cost basis resets inherited stock value to the date of death, so taxable gains only cover appreciation after that date.
-
IXUS adds international exposure across dozens of countries in one fund, while ISTB targets short-term bonds for stability near retirement.
-
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Royal Bank of Canada didn't make the cut. Enter your email to see the names that beat RY. The report is free. Enter your email and see if any of your stocks made the cut.
The account showed up with a letter from the brokerage and a list of 31 stocks. A few names ring a bell. Most don't. At 64, you already have your own retirement to run, and you never agreed to follow dozens of companies someone else picked. You can skip researching each one and focus on whether this collection fits your goals. For many heirs, three broad funds from one provider, iShares from BlackRock( NYSE:BLK ), do that job better: iShares Russell 1000 ETF( NYSEARCA:IWB ), iShares Core MSCI Total International Stock ETF( NASDAQ:IXUS ) and iShares Core 1-5 Year USD Bond ETF( NASDAQ:ISTB ).
Why Selling Inherited Stock Can Cost Less Than You Fear
Fear of taxes keeps a lot of heirs from touching an inherited account. The Internal Revenue Code eases much of that worry. Under 26 U.S.C. § 1014(a)(1), the basis of property acquired from a decedent is generally "the fair market value of the property at the date of the decedent's death."
Put simply, your starting point resets to each stock's value on the day the original owner died. When you sell, the taxable gain is generally just the change since that date. That means consolidating the account may cost far less in tax than you expect.
Free Report, Just Released
Why Didn't RY Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now . Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
And RY didn't make the cut!
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
Three limits apply. First, gains or losses after the date of death still count. Second, some estates can use other valuation dates under § 1014(a)(2), so get your basis figures from the executor or the brokerage. Don't assume them.
IRS guidance says some beneficiaries get a Schedule A (Form 8971) showing the estate tax value they must use (Publication 551). Third, the rule doesn't cover property that represents income in respect of a deceased person (§ 1014(c)). Inherited retirement accounts follow their own rules, so this article covers a taxable brokerage account. An inherited IRA works differently.
Why 31 Stocks Can Become Three Funds
A basket of individual stocks needs constant judgment calls: earnings reports, mergers, dividend cuts. It may also lean heavily on sectors or companies that reflected the original owner's career and convictions. Broad funds swap dozens of decisions for a few. Holding on to a stock for sentimental reasons is perfectly reasonable, and you don't have to sell everything at once (if you want to save your own heirs the same puzzle later, we put a full estate cleanup checklist, beneficiary forms and account titling included, in a free guide here).
IWB: Large US Companies in One Holding
IWB tracks the Russell 1000 Index, which holds the 1,000 largest US companies. That gives it broad coverage of the US large-cap market. Any American blue chips in the inherited account are probably already inside it, alongside hundreds of others. The fund charges a 0.15% expense ratio and had about $48.3 billion in net assets as of June 30, 2026.
It pays dividends quarterly. The latest was $1.006167 per share in September, and the trailing 12-month total is about $3.81 per share. Adjusted for distributions, the fund gained 13.79% over the past year and 304.8% over 10 years. Large companies still fall in sell-offs. IWB slipped 0.95% over the past month.
IXUS: The World Your Inherited Portfolio Skipped
An inherited portfolio of US stocks often has no foreign exposure at all. IXUS covers developed and emerging markets outside the United States in a single fund. Its July 31, 2026, portfolio filing lists companies based in Canada, Japan, Sweden, Spain, Israel, South Africa, and China, among others. Royal Bank of Canada( NYSE:RY ), one of the larger positions in the filing, made up about 0.69% of net assets.
The fund had about $58.4 billion in net assets as of that filing. Over the past year, it gained 13.57%, close to IWB's result. Over 10 years, it gained 137.35%, a reminder that foreign stocks can trail US stocks for long stretches. It also dropped 3.87% over the past month.
ISTB: Stability for Money You May Need Soon
ISTB holds US investment-grade bonds maturing in one to five years. Shorter maturities generally react less to interest rate changes than long-term bonds. That matters right now, since the 10-year Treasury yield was 4.96% on October 22, 2026, after hitting 5.31% on October 5.
The fund pays monthly. The latest payment was about $0.174 per share, and the past 12 months added up to about $2.07, against a recent share price of $47.44. It gained 1.17% over the past year and 10.39% over five years. Bond prices fall when rates rise, so ISTB can lose value. The fund also never matures. A single bond pays back principal on a set date, but ISTB keeps replacing maturing bonds with new ones.
Trade-Offs to Weigh Before You Consolidate
Three funds cut your workload, but market risk stays. IWB and IXUS will rise and fall with stocks, and ISTB's modest returns are what you pay for its stability. Selling can still trigger tax on gains made since the date of death, so confirm your basis first. You also give up the chance that one inherited stock turns into a big winner. And since all three funds come from iShares, you can usually buy them through one brokerage in a few orders.
Still, for a 64-year-old holding 31 stocks they never picked, these three funds turn someone else's choices into a plan you can actually follow.
Got $1,000? Before You Buy RY, Read This
If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And RY wasn't one of them.
They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->>
Contact editorial@247wallst.com for any questions or corrections.
