Three Low-Volatility ETFs Offer Retirees Steady Income Amid Market Swings
Retirees seeking steady income and lower market risk now have three strong ETF options. These funds focus on dividend payments, stable sectors, and reduced volatility. Each offers a mix of yield, cost efficiency, and protection against sharp stock market swings.
The Schwab U.S. Dividend Equity ETF (SCHD) stands out with a 3.7% dividend yield—over three times the S&P 500 average. It invests in stable sectors like energy, consumer staples, healthcare, and industrials. With a beta of 0.68 and an expense ratio of just 0.06%, it provides both income and low volatility. The fund is managed by Charles Schwab Investment Management, Inc.
The Vanguard Value Index Fund ETF (VTV) targets large-cap value stocks while avoiding heavy tech exposure. This approach lowers risk, reflected in its beta of 0.76. The fund yields 2% and has one of the lowest expense ratios at 0.04%. The Vanguard Group, Inc. oversees its operations. For a balanced approach, the iShares Russell 1000 Value ETF (IWD) blends market exposure with value investing. Its holdings focus on financials, industrials, and healthcare. The fund offers a 1.7% yield, a 0.18% expense ratio, and a beta of 0.86, making it a middle-ground choice. BlackRock Fund Advisors / iShares by BlackRock manages this ETF.
These three ETFs cater to retirees by combining dividend income with lower stock market today volatility. Their focus on stable sectors, competitive expense ratios, and moderate market exposure provides a structured way to balance growth and risk. Investors can choose based on yield needs, cost efficiency, and risk tolerance.
