The 3 Income ETFs I'd Use to Offset Social Security

"If you are depending on Social Security for your retirement income, you might want to add reinforcements. While Social Security is tweaked annually in an attempt to keep up with the pace of inflation, its buying power has been dwindling in recent decades while the core inflation rate of 2.9% continues to hover above the Federal Reserve's elusive 2% target."

"One strategic way to bolster your retirement income is to add a mix of income ETFs that are the most likely to offset any deficiencies left by Social Security. Rather than relying on a single stock or even asset class, we've uncovered a trio of income ETFs, including both equity and fixed-income flavors, that are dependable bets to offset any Social Security shortfall."

"The Schwab U.S. Dividend Equity ETF (NYSEArca: SCHD) is one to consider in the current market climate. Targeting the returns of the Dow Jones U.S. Dividend 100 Index, SCHD has a high standard for fundamental strength, including cash flow, among members, providing potential capital appreciation to a diversified portfolio in addition to the cash flow stream that dividends generate. With just over 100 stock holdings, SCHD has a trailing dividend yield of 3.79%,"

Social Security's buying power has declined as core inflation near 2.9% exceeds the Federal Reserve's 2% target. Adding income-focused ETFs can help offset retirement income shortfalls. A trio of ETFs—Schwab U.S. Dividend Equity ETF (SCHD), Vanguard High Dividend Yield ETF (VYM) and iShares Core U.S. Aggregate Bond ETF (AGG)—provides a mix of dividend equity exposure and fixed-income stability. SCHD targets the Dow Jones U.S. Dividend 100 Index, emphasizes fundamental strength and cash flow, holds just over 100 stocks and yields about 3.79%. SCHD's expense ratio is 0.060% and its current quarterly payout is $0.2604 per share.

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