Top 3 ETFs for Retirees Seeking Passive Income

A recent report highlights three exchange-traded funds (ETFs) ideal for retirees looking for passive income. These ETFs offer diversified exposure and reliable returns, making them appealing for retirement portfolios.

Date: 16-11-2024

AI Rating: 7

The report discusses three ETFs suitable for retirees focused on passive income through dividends. These include the Vanguard International High Dividend Yield ETF (VYMI), Invesco High Yield Equity Dividend Achievers ETF (PEY), and Invesco S&P 500 High Dividend Low Volatility ETF (SPHD). Each ETF showcases unique strengths, such as diversified holdings, competitive yield, and reputable management.

1. Vanguard International High Dividend Yield ETF (VYMI): This ETF has a current yield of approximately 4.6%, with annualized total returns averaging 8.3% since its inception in 2016. The mention of its expense ratio at 0.22% is favorable for long-term investors. The diversified nature of its nearly 1,500 stock holdings may mitigate risks associated with volatility in specific markets.

2. Invesco High Yield Equity Dividend Achievers ETF (PEY): With a current yield of 4.6% and an impressive average annualized return of 9.5% over the past decade, this ETF indicates a strong performance pattern. Although the expense ratio is slightly higher at 0.53%, its focus on high yields and dividend growth could attract income-seeking investors, especially in a lower-rate environment.

3. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD): This ETF offers a yield of 3.4% with an annualized total return averaging 10% over the past decade. It holds low-volatility, high-dividend stocks, which can help preserve capital in uncertain markets. The minimal expense ratio at 0.30% adds to its appeal for long-term holders.

The focus on dividends across all three ETFs suggests they may be appropriate for retired investors searching for reliable income. Although there is no mention of earnings per share (EPS), revenue growth, net income, profit margins, or free cash flow, the performance metrics and yield significantly influence potential stock prices related to these ETFs.

Stocks: VYMI PEY SPHD