"Three funds that check all the right boxes are the Amplify CWP Enhanced Dividend Income ETF ( NYSEARCA:DIVO), the Invesco S&P 500 High Dividend Low Volatility ETF ( NYSEARCA:SPHD), and the iShares Preferred and Income Securities ETF ( NASDAQ:PFF). These ETFs send you a virtual check every month in the form of cash distributions, and they're all diversified funds that require no stock picking."
"Since you'll get paid cash on a monthly basis, you'll be able to boost your retirement income potential by reinvesting the dividends. Furthermore, for extra diversification, you could buy two or even all three of these ETFs. With that in mind, let's take a closer look at DIVO, SPHD, and PFF right now. DIVO: Less Volatility With High-Quality Names Some folks say that volatility brings opportunity, but when you're a retirement investor, you're probably looking to reduce your drawdowns."
"How does the DIVO ETF reduce risk? First of all, it only imposes a 0.56% expense ratio (i.e., annual management fees that are automatically deducted from the share price). That's a reasonable price to pay for the management of this diversified fund. Speaking of diversification, the Amplify CWP Enhanced Dividend Income ETF includes 36 stocks in its holdings. A retiree probably doesn't want to spend a lot of time picking out individual stocks, so buying DIVO can make this task unnecessary."
Different life stages create different financial goals that can require owning different ETFs. Near retirement, ETFs that provide consistent income and frequent payouts can help support cash flow. Three ETFs highlighted are DIVO, SPHD, and PFF, each offering monthly cash distributions and diversified holdings that eliminate the need for individual stock selection. Monthly dividends can be reinvested to boost retirement income potential, and investors can combine two or all three ETFs for added diversification. DIVO specifically targets lower volatility with a 0.56% expense ratio and holds 36 stocks to reduce individual-stock risk.
Read at 24/7 Wall St.
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