If you’re thinking of retirement, nearing retirement or you’re already there, one of the last things you want to worry about is money. So, why not have your money make you money?
One of the best ways to do that is by investing in passive income and growth, which investors can accomplish with Vanguard exchange-traded funds (ETFs). Not only do these ETFs offer a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.
Plus, there are quite a few income-generating ETFs that’ll help in retirement, too. In fact, here are three you may want to consider.
Key Points
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If you’re thinking of retirement, nearing retirement, or you’re already there, one of the last things you want to worry about is money.
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Not only do these ETFs offer a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.
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Vanguard International High Dividend Yield Fund ETF
With an expense ratio of 0.17% and a quarterly dividend, the Vanguard International High Dividend Yield Index Fund ETF (NASDAQ: VYMI) offers exposure to international stocks with above-average dividend yields. Some of its 1,655 holdings include Nestlé, Novartis, Roche Holding, Toyota Motor, and Shell, to name a few.
The ETF also just paid a quarterly dividend of just over $1.07 per share on June 24. Before that, it paid a dividend of just over 60 cents per share on March 25.
With this ETF, dividends are paid by these stocks and are passed through to shareholders. Now, because the dividends come from 1,655 stocks, all of which have different payout schedules, the payment amounts can vary quarter over quarter.
Since going public in 2016 at around $36.50, the ETF is now up to $83.88. Most recently, after a recent pullback to $65 in April, the ETF has recovered all lost ground.
Vanguard Energy Index Fund ETF
With an expense ratio of 0.09% and a quarterly dividend, the Vanguard Energy Index Fund ETF (NYSEARCA: VDE) tracks the returns of energy sector stocks. The ETF holds about 112 holdings with $8.8 billion in assets as of the end of July.
It also has an average yield of about 3.1%.
About 22.7% of the VDE ETF portfolio is Exxon Mobil, which has been rebounding nicely, generates strong returns, and returns a good deal of capital to shareholders. Other top holdings include Chevron, ConocoPhillips, Williams Cos., and EOG Resources.
It also just paid out a monthly dividend of just over 93 cents on June 30. Before that, it paid out a dividend of just over 94 cents on May 27. Its next dividend should be out around October.
Fueling upside, there’s still strong global energy demand, particularly for electricity – especially with an explosive artificial intelligence story. In fact, according to the International Energy Agency (IEA), global demand for electricity is set to grow at an annual rate of 4% through 2027.
“The surge is primarily driven by robust growing use of electricity for industrial production, increased demand for air conditioning, accelerating electrification, led by the transport sector, and the rapid expansion of data centres,” the International Energy Agency said.
Also, since going public in October 2004, the VDE ETF has run from $30.52 to $119.31 so far. From here, we’d like to see it rally to $150 near-term.
While we wait, we can collect its yield.
Vanguard Dividend Appreciation ETF
With an expense ratio of 0.05% and a quarterly dividend, the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) tracks the performance of the S&P U.S. Dividend Growers Index.
In addition, the VIG ETF has just over $109.6 billion in assets under management, a well-diversified portfolio of 337 stocks, and offers a low-cost, resilient, growth-oriented option for smart investors. Its biggest holding is in Broadcom, where the VIG ETF holds a 6.01% stake.
Some of its other holdings include Broadcom, Microsoft, JPMorgan, Apple, Visa, Eli Lilly, and Exxon Mobil, to name just a few. Making the VIG ETF even more attractive, it yields about 1.65% and just paid out a dividend of just over 87 cents on July 2. Before that, it paid a dividend of just over 93 cents on March 31. Its next dividend should be out by October.
Also, since going public in April 2006, the VIG ETF has run from $34.57 to a current price of $209.50. From here, we’d like to see it rally to $230 initially.
While we wait for that to happen, we can at least collect its quarterly dividend.
In addition, as noted by 247WallSt.com contributor Rich Duprey in May 2025, “The Vanguard Dividend Appreciation ETF’s 1.75% 12-month trailing dividend yield may seem modest, but its strength lies in dividend growth, averaging 10.7% annually over the past five years. This compounding effect, when reinvested, drives significant long-term returns, appealing to total return investors.”
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Author: Ian Cooper
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