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.

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Stock Forecasts

SPYDView SPYD chart on TradingView

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.

VIGView VIG chart on TradingView

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.

DVYView DVY chart on TradingView

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.

BUFRView BUFR chart on TradingView

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.

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