Final answer:
VFIAx is actually the best choice for a long-term retirement account for a young investor because of the potential for high returns over time and typically lower expense ratios in passively managed funds. The notion that it is the worst due to high expense ratios or that investing in the U.S. stock market is a poor strategy is incorrect. The correct option is a.
Step-by-step explanation:
Content loaded, the question at hand involves choosing a fund for a long-term retirement account by a person in their 20s. Considering the information provided on expense ratios, loads, returns, and yields, and the characteristics of VFIAx being a passively traded fund, it is not accurate to claim that it is the worst choice solely because it has a high concentration in the U.S. stock market. The true statement among the provided options is that VFIAx is the best choice for a long-term retirement account. This is because for a young investor, the long-term high returns of stock market investments tend to outweigh the short-term volatility. Additionally, passively managed funds often have lower expense ratios, which can be beneficial for long-term growth.
Regarding the notion that VFIAx is the worst choice due to its high expense ratio, it is misleading without evidence of high expenses associated with VFIAx. Passively managed funds like VFIAx often have lower expense ratios compared to actively managed funds. Hence, that statement is invalid.
It is also not universally true that passively traded funds are always a bad choice. Moreover, investing in the U.S. stock market has historically provided high returns over the long term, so this cannot be deemed a poor strategy.