The best ETFs for retirees
Published On Nov 22, 2024, 10:36 AM
With many Americans nearing retirement, especially as baby boomers age, ETFs have become a preferred investment method for those in or close to retirement. The article discusses how various ETFs can cater to retirees by offering income through dividends or interest, providing diversification, and protecting against market downturns. It emphasizes the importance of tailoring investments based on an individual's risk tolerance and financial needs. Recommendations include dividend-focused ETFs like SPDR Portfolio S&P 500 High Dividend ETF (SPYD), Vanguard Dividend Appreciation Index Fund ETF Shares (VIG), and iShares Select Dividend ETF (DVY), as well as growth-oriented options.
Stock Forecasts
SPYD
Positive
As retirees increasingly seek income and stability, dividend-focused ETFs are likely to remain attractive due to their reliable payout mechanisms and potential for growth. These ETFs can serve as a buffer against market fluctuations and inflation, positioning them favorably for conservative investors.
VIG
Positive
The Vanguard Dividend Appreciation ETF (VIG) is designed to provide exposure to companies with a strong track record of growing dividends. This ETF could attract retirees focusing on income generation while benefiting from long-term capital appreciation, especially in a market that favors blue-chip stocks.
DVY
Positive
The iShares Select Dividend ETF (DVY) targets high dividend-paying U.S. stocks, making it an appealing option for retirees aiming for income. Given the current economic conditions prioritizing income-generating assets, DVY may see positive movement among income-focused investors.
BUFR
Positive
The Protected S&P 500 ETF (BUFR) offers downside protection linked to the S&P 500. This is particularly appealing in volatile markets, as investors approaching retirement may seek instruments that minimize risk while still providing equity exposure. Hence, BUFR is poised for favorable interest from cautious investors.
Related News
Tax, wages and prices - what the Budget means for you and your money
Oct 30, 2024, 9:49 AM
The chancellor has delivered a packed Budget, so here's how it affects you and your money.
Chancellor Rachel Reeves says she needs to raise £20bn. How might she do it?
Oct 2, 2024, 6:11 AM
The chancellor says there is a black hold in the public finances. Evan Davis asks how it might be filled.
S&P 500 is surviving Big Tech's slide as 'other 493' catch up
Sep 15, 2024, 9:00 AM
(Bloomberg) -- The stock market has recovered most of the losses suffered in its summer selloff. While the S&P 500 Index has bounced back before, this time is unique because it isn’t being led by Big Tech — instead it’s everyone else’s turn.Most Read from BloombergHousing’s Worst Crisis in Decades Reverberates Through 2024 RaceAn Affordable Nomadic Home Design Struggles to Adapt to Urban LifeUS Driving and Congestion Rates Are Higher Than EverA City Finds Success Using 'Trees as Medicine'The Hag