Is SPHD a Good Retirement Investment for Boomers?

"There's a huge difference between building an investment portfolio for retirement and maintaining an investment portfolio in retirement. When you're in the process of building retirement wealth, it makes sense to load up on investments that are poised for growth, even if that means taking on a fair amount of risk. Once you're gearing up to retire, it's important to reduce risk in your portfolio."

"The Invesco S&P 500 High Dividend Low Volatility ETF tracks the S&P 500 Low Volatility High Dividend Index. First, it invests in a select group of S&P 500 companies that have the highest dividend yields. From there, it chooses companies with historically low volatility to limit investors' risk."

"At a time when you're tapping your portfolio consistently, it's important to minimize risk. SPHD, by nature, does that for you by filtering out companies that are more volatile. Also, because SPHD focuses on dividend-paying companies, it's an asset that can continuously generate income for your portfolio."

Building a retirement portfolio prioritizes growth and may accept higher risk, while maintaining a retirement portfolio prioritizes lower volatility because withdrawals create income needs. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) selects high-dividend S&P 500 companies and then filters for historically low volatility to limit investors' risk. SPHD can provide continuous dividend income while reducing day-to-day value swings that can harm withdrawal plans. SPHD can be combined with other assets as part of a retirement income strategy. Investors should understand the benefits and potential drawbacks before allocating significant capital to SPHD.

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