10 ETFs Financial Advisors Recommend for Near-Retirees

As retirement approaches, your investment strategy often needs to shift from pure growth to a more balanced approach. That doesn’t mean you stop trying to start investing for the future — it means being more intentional about risk, income, and long-term stability.

Many financial advisors suggest combining steady income sources with investments that still offer growth potential. Inflation remains a concern even in retirement, especially over a 20- to 30-year horizon. That’s why a thoughtful combination of ETFs can help support both income needs and long-term financial security.

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1. Schwab U.S. Dividend Equity ETF (SCHD)

Dividend ETF (Total expense ratio: 0.06%)

This ETF focuses on high-quality U.S. companies, focused on energy, consumer staples, health care, and industrials, with strong dividend histories and solid financial fundamentals. Advisors may recommend it for near-retirees because it offers a balance of income and long-term growth potential.

The fund screens for companies with consistent earnings and sustainable payouts, which may provide more stability than chasing high yields alone. However, it remains equity-based, so it can still fluctuate during market downturns. It may be used as a core income-generating position in retirement portfolios.

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2. Vanguard High Dividend Yield ETF (VYM)

Dividend ETF (Total expense ratio: 0.04%)

VYM targets companies that pay above-average dividends, providing a steady income stream. It holds a broad mix of large-cap stocks across sectors, focused on energy, financials, health care, and industrials, offering diversification alongside yield.

Advisors may include it for retirees seeking a consistent cash flow without concentrating too heavily in one industry.

3. iShares Core High Dividend ETF (HDV)

Dividend ETF (Total expense ratio: 0.08%)

HDV emphasizes high-quality companies with strong balance sheets and reliable dividends. It tends to be more concentrated than some other dividend ETFs, often focusing on sectors like energy and health care.

This focus may enhance yield and stability, but it may also introduce sector-specific risk. Advisors may pair it with broader funds to maintain diversification. For near-retirees, it may provide dependable income with a quality tilt.

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4. JPMorgan Equity Premium Income ETF (JEPI)

Options income ETF (Total expense ratio: 0.35%)

JEPI uses a covered call strategy to generate income while investing in equities. This approach may provide higher monthly income and reduce volatility compared to traditional stock funds.

Advisors may recommend it for retirees who want income with less market sensitivity. However, the options strategy may limit upside during strong bull markets. It may be best viewed as an income-focused complement rather than a growth engine.

5. Vanguard Total Stock Market ETF (VTI)

Broad market ETF (Total expense ratio: 0.03%)

VTI provides exposure to the entire U.S. stock market, including a blend of small-, mid-, and large-cap companies. Even near retirement, advisors may suggest maintaining some growth exposure to keep pace with inflation.

Advisors may suggest this ETF for its diversification and low costs. The tradeoff is that it still carries full market risk and may be volatile in the short term. For long-term growth, it remains a foundational investment.

6. Vanguard Dividend Appreciation ETF (VIG)

Dividend growth ETF (Total expense ratio: 0.04%)

VIG focuses on companies that have consistently increased their dividends over time. This strategy emphasizes quality and long-term growth rather than simply high yield.

Advisors may recommend it for retirees who want income that can grow over time, helping offset inflation. The downside is that its yields could be lower than other dividend-focused funds. It can be a strong complement to higher-yield investments.

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7. iShares Short Treasury Bond ETF (SHV)

Short-term bond ETF (Total expense ratio: 0.15%)

SHV invests in short-term U.S. Treasury securities, offering stability and liquidity. It may be used as a cash alternative, providing modest income with very low risk.

For near-retirees, this type of fund can help cover short-term expenses without exposure to stock market swings. The tradeoff is lower returns compared to longer-term investments. It’s useful for preserving capital and maintaining flexibility.

8. iShares TIPS Bond ETF (TIP)

Inflation-protected bond ETF (Total expense ratio: 0.18%)

TIP invests in Treasury Inflation-Protected Securities, which adjust with inflation. This makes it a valuable tool for protecting purchasing power over time.

Advisors may include TIPS in portfolios to hedge against rising costs, especially in retirement. However, these funds may be sensitive to interest rate changes. They may be best used as part of a broader fixed-income strategy.

9. FT Vest Laddered Buffer ETF (BUFR)

Buffered ETF (Total expense ratio: 0.95%)

BUFR uses a defined-outcome strategy that combines U.S. equity exposure with options to help buffer a portion of market losses over a set outcome period, typically one year. Rather than fully eliminating downside risk, it aims to absorb losses up to a certain level while still allowing for limited upside participation.

This structure may appeal to near-retirees who want equity exposure with some built-in downside protection. However, the largest tradeoff is that potential gains are capped. This fund may be used as a tactical allocation rather than a long-term core holding.

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10. Vanguard Total Bond Market ETF (BND)

Aggregate bond ETF (Total expense ratio: 0.03%)

BND provides broad exposure to the U.S. taxable investment-grade bond market, excluding tax-exempt and inflation-protected bonds. Advisors may recommend it as a core fixed-income holding because it offers diversification and relatively stable income.

For near-retirees, this type of fund may help reduce overall portfolio volatility while providing a steady stream of interest payments. It can act as a counterbalance to stock market fluctuations, especially during periods of uncertainty. The tradeoff is that returns may be lower than equities, and the fund may be sensitive to changes in interest rates. Still, it plays a key role in building a more balanced, income-focused portfolio.

Bottom line

Near-retirees face a unique challenge — balancing the need for income today with the need for growth tomorrow. The right mix of ETFs can help address both goals by combining dividends, stability, and long-term market exposure.

Choosing the right combination depends on your risk tolerance, timeline, and income needs. Working with a financial advisor can help you build a portfolio designed to grow your wealth while supporting your lifestyle throughout retirement.

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