Building a robust investment portfolio to secure your retirement relies on selecting assets capable of weathering market fluctuations. A focus on creating a portfolio with minimal maintenance requirements while generating income becomes crucial, especially as retirement approaches. Exchange-traded funds (ETFs) can serve as an ideal investment vehicle, with certain funds designed to be held indefinitely, thus offering potential financial security throughout retirement.
One of the standout options is the Vanguard Total Stock Market ETF (NYSEARCA: VTI). This fund tracks the performance of the CRSP US Total Market Index and is considered an excellent choice for long-term investors. Boasting an expense ratio of only 0.03% and a yield of 1.08%, VTI provides extensive exposure to the larger stock market, comprising over 3,500 stocks. Notably, 37% of its allocation is in the technology sector, with significant investments also in consumer discretionary (13.90%) and industrials (12.50%). The highest individual stock allocations include Nvidia (6.61%), Apple (5.74%), and Microsoft (4.79%).
While VTI’s yield may not be the industry’s highest, its capital appreciation potential is impressive, having gained 18% in the past year alone, with a current trading price of $340. Cumulatively, the fund has delivered a return of 15.44% over the past year and an astonishing 73.60% over the last three years. VTI’s approach to diversifying across numerous stocks helps mitigate risks while offering the potential for substantial long-term returns.
For those seeking lower volatility as retirement nears, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) presents a compelling alternative. This fund targets dividend income while managing investment risks and holds an expense ratio of 0.30% along with a yield of 4.80%. SPHD pays monthly dividends, which can significantly assist in covering living expenses for retirees. Concentrating on only 51 stocks, it prioritizes sectors like real estate (21.86%), consumer staples (16.50%), and utilities (14.50%).
Key holdings include well-known dividend payers such as Realty Income, Verizon, and Pfizer. SPHD increased its annual dividends by 23% in 2025, reflecting effective rebalancing and higher payouts; thus, it has become increasingly attractive to retirees. With an 8% gain already recorded in 2026, SPHD is priced at $52.31, making it a solid contender for long-term, low-volatility investment.
Similarly, the Vanguard Dividend Appreciation Index Fund ETF (NYSEARCA: VIG) is noted for its stability and reliability. This passively managed fund, which tracks the S&P U.S. Dividend Growers Index, invests in about 300 companies known for consistently increasing dividends. With a yield of 1.55%, VIG emphasizes sector allocations toward technology (25.90%), financials (21.50%), and healthcare (16.30%). Prominent holdings include tech giants like Apple and Microsoft along with other significant dividend payers such as Exxon Mobil and Walmart.
With a cumulative return of 12.69% over the past year and 51.47% over three years, VIG has shown robust performance. The fund boasts a 5-year return of over 70% and is currently priced at $226, with a very low expense ratio of 0.05%. Although the yield may not be the most generous, it offers access to high-quality stocks with a consistent history of dividend growth, making it an appealing option for long-term investors.
Overall, these ETFs represent a range of strategies suited for individuals transitioning into retirement, offering a combination of stability, income generation, and potential growth.
