Frankly, Retirement Is Easy With These Three ETFs

Whether you’re already retired or planning for one, investing in retirement will require a balance of strategies that ensure income for the short term and long term. If you invest in the right types of exchange-traded funds (ETFs), you can build a diversified portfolio that ensures steady passive income and capital growth. 

With hundreds of ETFs in the market today, you need to be careful when you’re picking one. Keep your retirement goals in mind to make a sound investment. Most ETFs track the performance of a benchmarked index and offer a simple, low-cost way to invest. Vanguard High Dividend Yield ETF (NYSEARCA:VYM), Vanguard Total Stock Market Index ETF (NYSEARCA:VTI), and Vanguard S&P Growth Index Fund ETF (NYSE: VOOG) are three Vanguard ETFs that can make retirement easy. 

Vanguard High Dividend Yield Index Fund ETF

One of the most popular Vanguard ETFs, the Vanguard High Dividend Yield Index Fund tracks the performance of the FTSE High Dividend Yield Index. The passively managed fund has a yield of 2.39% and an expense ratio of 0.06%. It invests in over 500 stocks and ensures that you own some of the biggest dividend payers. The fund offers broad diversification and has generated strong returns.

It has assets under management of $81.3 billion and invests heavily in the financials sector (21.10%), followed by technology (14.10%) and industrials (13.50%). Its top 10 holdings include the dividend companies like Johnson & Johnson, Walmart, Broadcom, Procter & Gamble, Home Depot, and UnitedHealth Group. VYM has a 19-year track record and is a smart option for income-focused investors. 

In 2025, the fund has gained 13.48% and is exchanging hands for $144. It is at the 52-week high but could keep moving higher. While the fund’s composition and yield will continue to change with time, it is a strong option for those looking to build a retirement portfolio without taking excessive risk.

Vanguard Total Stock Market Index Fund ETF

The Vanguard Total Stock Market Index Fund seeks to track the performance of the CRSP US Total Market Index. The passively managed fund has a low expense ratio of 0.03% and a yield of 1.09%. It has generated a cumulative 3-year return of 72.02% and a 5-year return of 93.17%. 

VTI holds over 3,500 stocks offering ultimate portfolio diversification. It allocates 39.50% to technology, 12.10% to industrials, and 10.70% to financials. The fund holds the Magnificent Seven in the top 10 holdings and includes Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla. It has the highest allocation towards Nvidia stock (7.13%). 

When you invest in VTI, you’re not just focusing on specific industries and companies; instead, you’re investing in the growth of the U.S. stock market as a whole. This ensures reduced volatility and the potential to outperform the broader market. 

VTI has gained 16.24% this year and is exchanging hands for $336.23. Another Vanguard ETF, which is trading very close to the 52-week high. However, its holdings and the yield make it a buy for the long haul. With a basket of over 3,000 stocks, VTI offers all the diversification an investor needs. 

Vanguard S&P 500 Growth ETF

The Vanguard S&P 500 Growth ETF invests in the S&P 500’s growth index, which is composed of the S&P 500 stocks. It invests in growth stocks and offers high capital appreciation potential. It only includes stocks from the index that show high growth characteristics, and it has outperformed the S&P 500 over the last 10 years. 

The fund has a yield of 0.47% and an expense ratio of 0.07%. VOOG has gained 22.22% this year and is exchanging hands for $447.57. It holds 217 stocks and is tech-heavy with an allocation of 43.70%.

It invests 15.40% in communication services and 12.20% in consumer discretionary. The top 10 holdings of the stock include Nvidia, Microsoft, Apple, Alphabet, Meta Platforms, Amazon, and Tesla. It has the highest allocation towards Nvidia (15.29%). 

VOOG has generated a 1-year return of 19.28% and has assets under management of $21.7 billion. Despite holding growth stocks, the ETF has weathered market downturns somewhat better and has shown steady growth. The fund has a very targeted approach and holds only high-growth stocks from the index. It has generated a cumulative 3-year return of 99.48% and a 5-year return of 109.01%.