"If you're retired, need a passive income supplement from your investment portfolio, and strive to keep things simple and cost-effective, you should probably check out the list of Vanguard ETFs. In terms of getting the job done well, affordably, and effectively, it's tough to stack up against the ETF legend, even with the ocean of other passive and active ETF products across the market."
"Indeed, it really does seem like there's an overabundance of ETFs these days, but you don't really need to dig through all that's out there. In this piece, we'll review two steady dividend-focused equity ETFs that are all a retired passive income investor needs to give themselves a nice boost. Though I think most retirees should own a mix of both, given what each brings to the table, I'm not against owning one of the other based on one's individual needs."
"The Vanguard High Dividend Yield Fund ETF ( NYSEARCA:VYM) is a more yield-focused ETF that can allow one to really beef up their income stream without running into trouble (many of the dividend stocks featured within the VYM have very well-covered payouts). Of course, the yield may be more than double that of the S&P 500 at 2.54%. But it's not exactly the highest that an income investor can stretch their yield."
Retired investors seeking passive income benefit from low-cost Vanguard ETFs that simplify dividend investing. Vanguard High Dividend Yield Fund ETF (VYM) emphasizes yield and holds many stocks with well-covered payouts, offering a yield around 2.54%, which is more than double the S&P 500. Schwab U.S. Dividend Equity ETF (SCHD) yields about 3.67% but may sacrifice capital and dividend appreciation. Some retirees prioritize higher current income while others, especially those with pensions, prioritize dividend growth. Owning a mix of yield-focused and dividend-growth ETFs can balance income needs and long-term appreciation while keeping costs and complexity low.
Read at 24/7 Wall St.
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