Baby Boomers Should Load up on These Retiree ETFs

Whether you’re already retired or planning for it, the one thing you don’t want to worry about is the money. If you plan your finances well, you can have a comfortable retirement. This is where exchange-traded funds (ETFs) make all the difference.

They offer a steady yield, carry low risk, and help achieve portfolio diversification. I think Schwab U.S. Dividend Equity ETF (NYSE:SCHD), Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD),] and Vanguard High Dividend Yield ETF (NYSEARCA:VYM) are three ETFs baby boomers should load up on.

Here’s why I like them. 

Schwab U.S. Dividend Equity ETF

The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index and is a simple and straightforward fund. It measures the performance of the 100 best dividend-paying stocks and focuses on quality over quantity. It picks companies based on their ability to sustain dividends and pay higher yields. SCHD holds 103 stocks and has a yield of 3.91%. 

The ETF only invests in companies that have raised dividends over the past decade, ensuring the right blend of growth and income for investors. Thus, making it ideal for retirement. Unlike other tech-focused funds, SCHD has the highest allocation in the energy sector (19.34%), followed by consumer staples (18.50%) and healthcare (16.10%). 

Its top holdings include the best dividend stocks, such as AbbVie, Coca-Cola, PepsiCo, Cisco Systems, and Chevron Corporation. Since inception in 2011, the fund has generated an average annual total return of 11.6% and has a low expense ratio of 0.06%. Its annualized 5-year return is 12.04%, and its NAV is $26.72 at the time of writing. 

SCHD focuses on yield and growth, ensuring you only own the top-quality businesses. 

Invesco S&P 500 High Dividend Low Volatility ETF 

The Invesco S&P 500 High Dividend Low Volatility ETF tracks the S&P 500 Low Volatility High Dividend Index and picks the best highest-yielding stocks with low volatility. The ETF builds a solid portfolio of high-yield stocks that carry little risk. The one thing that sets it apart is the monthly dividends. If you’re here for passive income, SCHD won’t disappoint. With this ETF, you get to own the most important companies in the United States. 

The fund holds 51 stocks and has a limit of 10 stocks from each sector. The sector allocation is as follows:

• Real estate (22.58%)
• Consumer staples (16.87%)
• Utilities (14.63%)
• Healthcare (11.76%)

It cherry-picks the highest-yield stocks and ensures that the fund has only the best in the industry. The fund holds some of the best dividend-paying stocks, such as Pfizer, Verizon Communications, Realty Income, and United Parcel Service. SPHD has an expense ratio of 0.30% and a yield of 4.84%. 

The ETF picks low volatility stocks, which can be slow and steady dividend payers but also have the potential for capital appreciation. Second, it focuses on large-cap, high-yield stocks that can generate steady passive income for you. SPHD is an ETF to buy and hold forever. 

Vanguard High Dividend Yield ETF

The Vanguard High Dividend Yield ETF tracks the FTSE High Dividend Yield Index. It identifies dividend-paying stocks in the market, excluding real estate investment trusts (REITs), and then selects the highest-yielding stocks for the final portfolio. Its portfolio is then market-cap weighted, and the largest stocks have the biggest influence on the ETF. 

VYM holds over 500 stocks and has an expense ratio of 0.06%. With over 500 stocks, there’s optimal diversification, but it also dilutes the dividend yield. VYM has a yield of 2.47% and offers a blend of growth and income. 

It focuses on growth-oriented stocks, and the sector allocation is as follows:

• Financials: 21.60%
• Industrials: 13%
• Technology: 13%
• Healthcare: 12.40%

Its top 10 holdings include dividend giants like Johnson & Johnson, Walmart, Home Depot, Procter & Gamble and Exxon Mobil. These companies have paid dividends for many years and have the ability to sustain them. 

VYM has gained 9.9% in 2025 and has generated a cumulative 3-year return of 44.38% and a 5-year return of 105.33%. It remains one of the top Vanguard funds and could generate significant income in retirement. While its yield isn’t as high as other ETFs, it has a high capital appreciation potential, which could benefit investors in the long term.