On the plus side, you are getting close to retirement, which means the days of constantly pinging phones and daily meetings are hopefully coming to an end. That is the good news, while the bad news is that now you have to start thinking about how to best balance your financial future.
For most retirees, a healthy retirement can start with and likely end with snapping up some healthy and strong ETFs that pay out big dividends. The goal here is not just to create wealth, but to generate passive income that can work alongside any other income sources retirees might have.
Vanguard Dividend Appreciation Index Fund (VIG)
One of the best-known index funds in the country, the Vanguard Dividend Appreciation Index Fund, or VIG, is a must-buy for any retiree. On the growth side, you have slow and steady growth, and everyone knows that slow and steady wins the race.
With holdings in tech, financial, healthcare, industrials, and energy sectors, VIG is well balanced to handle any market volatility. Stocks like Microsoft, Apple, Eli Lilly, and Broadcom make up a good percentage of its holdings, which should give you plenty of confidence.
Of course, the reason to buy VIG isn’t just its 5% growth YTD, it’s the dividend returns you should be after. Between 2022 and 2025, the dividend returns have ranged from 71 cents to 93 cents a share, making owning this ETF a healthy passive income generator.
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
While the growth returns of SPYD or the SPDR Portfolio S&P 500 High Dividend ETF this year have only been around 0.24%, there’s no cause for concern. Instead, it’s all about the dividend and passive income with this holding.
If you can look past the growth return, the 4.71% dividend yield, which paid out 50 cents in June 2025 and 41 cents in March 2025, there is plenty of passive income to be generated.
Rest assured that this ETF, which offers heavy concentration in real estate, utilities, and financial services, will help you keep the lights on and the vacation plans on track for the foreseeable future.
Vanguard High Dividend Yield Index Fund (VYM)
With a 5.55% return YTD, shares of Vanguard High Dividend Yield Index Fund should be snapped up by retirees of all ages right now. Yes, it’s heavily concentrated in volatile areas like technology, healthcare, and financial services. Still, it’s hard to ignore the value in owning shares of JP Morgan Chase and Walmart for the long term.
Speaking of long-term, owning VYM is all about its excellent dividend, which is what makes it so attractive to retirees right now. Paying out 86 cents in June 2025, it was just one year ago that the dividend passed one dollar per share, and it wasn’t the first time either. There’s every reason to believe it likely won’t be the last time you see this kind of dividend return, either.
If you can overlook growth returns on VYM, the dividends are going to give you all of the passive income you need to enjoy the golden years.
Neos S&P 500(R) High Income ETF (SPYI)
If you’re comfortable getting a little more aggressive with snapping up a fantastic dividend earner, look no further than SPYI. A Reddit favorite in r/dividend, this ETF is heavily weighted in the technology vertical, with 34% of its holdings in this sector, which offers plenty of upside, but volatility as well.
Still, it’s hard to ignore that the stock has returned 6.12% YTD and 14.30% over the last year. Add that to the 51-cent dividend on July 23, 2025, and a dividend that has held firm in the 50-cent range for one year, and there is plenty of reason to love this ETF.
For retirees, the risk of buying into the tech vertical offers plenty of upside, which means growth isn’t out of the realm of possibility here. However, as posters in r/dividend know with certainty, buying SPYI is a pure dividend play that’s going to generate passive income for years down the road.
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