Retirees Are Quietly Loading Up on These 3 Vanguard Income ETFs

"For a retiree's portfolio, consistent income and steady growth are key. That's why many are arming their nest eggs with dividend stocks. These are stocks of companies that make regular payments to shareholders out of their profits. These are typically made on a quarterly or monthly basis. And dividends can help retirees meet their basic needs in addition to other sources of income like Social Security benefits and pensions."

"This investment management giant is known in the industry for its low-fee funds. In fact, the average Vanguard fund expense ratio is 0.07%. This is very important as high fees could take a serious crunch out of a retiree's returns at a time when income is crucial. But Vanguard currently offers more than 450 funds. And today, we're going to narrow it down to three Vanguard ETFs that retirees have been loading up on for income."

Dividend stocks provide retirees regular cash distributions, typically quarterly or monthly, that supplement Social Security and pensions. Dividend-paying companies are often well established with strong financials. Dividend-paying ETFs offer diversified exposure by holding hundreds of such stocks screened for yield, fundamentals, performance, and growth potential. Leading dividend ETFs are managed by large institutions like Vanguard. Vanguard's funds are notable for low expense ratios — the average is 0.07% — which helps preserve retiree returns. The Vanguard High Dividend Yield ETF (VYM) holds over 500 stocks, yields a little over 2%, has more than $84 billion in assets, and posted a five-year return exceeding 55%.

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