One of the easiest ways to build a retirement nest egg is to invest in a basket of carefully selected assets that produce strong yields. Known as exchange-traded funds (ETFs), they are managed by professional experts who select the stocks to buy and sell at a fee. You can own hundreds of different stocks at low cost and enjoy steady growth and income.
You can choose from any number of ETF providers, but the funds provided by Fidelity and Vanguard are some of the most reliable ETFs with considerable assets under management. The financial stalwarts have several ETFs to choose from, and they’ve helped customers build wealth for decades. They offer low-cost funds designed to meet your financial goals and investment horizon. While Fidelity and Vanguard are both solid options, here are the top three worthy of investors’ attention.
1. Fidelity High Dividend ETF
The Fidelity High Dividend ETF (NYSEARCA:FDVV) is an excellent pick for your portfolio. The ETF tracks the Fidelity High Dividend Index and invests 80% of the assets in the same ones as the index. It invests in dividend companies that have the potential to keep growing their payouts.
It offers an attractive yield of 3.1% and has been consistent in rewarding shareholders in the long term. The fund invests 25.34% in the technology sector, 19.20% in financial services, 12.57% in consumer defensive, and 11.51% in real estate. It holds 109 stocks, and the top four holdings include the biggest tech giants like NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and JPMorgan Chase (NYSE:JPM). Its top 10 holdings constitute 32.67% of the portfolio.
FDVV isn’t a very aggressive fund. It generates steady passive income and has the potential for capital appreciation. It has generated a 3-year average annual return of 15.41% and a 5-year average annual return of 17.90%.
FDVV has a very low expense ratio of 0.16%, which means you pay $1.60 annually for $1,000 in investment. With FDVV, you get to own the best tech stocks and blue chip dividend companies. It is a value-focused ETF and is exchanging hands for $55, up 11.5% year-to-date.
2. Vanguard S&P 500 ETF
One of the most popular Vanguard ETFs, Vanguard S&P 500 ETF (NYSEARCA:VOO) invests in stocks in the S&P 500 index and holds some of the largest U.S. companies. The fund offers broad exposure while your risk remains diluted across several sectors like technology, financial services, energy, utilities, and more. VOO is a top choice of 2025 and has generated a one-year return of 18.05%.
The ETF holds 504 stocks and has the highest allocation in the technology sector (33.50%), financials (13.80%), consumer discretionary (10.60%) and communication services (10%). Its top 10 holdings include the Magnificent Seven such as NVIDIA, Tesla (NASDAQ:TSLA), Microsoft, Apple and Alphabet (NASDAQ:GOOG).
VOO has remained a preferred choice for retail investors this year, smashing all records. It has seen an inflow of over $100 million in a year. The fund has an expense ratio of 0.03% and has generated a 313.86% cumulative return in a decade.
The ETF has a yield of 1.12% and offers the easiest way to own the best artificial intelligence (AI) stocks. With VOO, you’re getting a basket of the best U.S. stocks. This is an ETF to hold for a lifetime. It is a great option for investors who want to invest in stocks but do not want to worry about rebalancing and making regular changes to the investment strategy.
3. Vanguard High Dividend Yield ETF
With Vanguard High Dividend Yield ETF (NYSEARCA:VYM), you get high diversification and steady dividend income. The passively managed fund tracks the performance of the FTSE High Dividend Yield Index and pays quarterly dividends.
It holds 580 stocks across different sectors and gives you exposure to technology, consumer staples, energy, and other industries. The fund has a yield of 2.5% and an expense ratio of 0.06%.
It has generated a year-to-date return of 10.9% and a cumulative return of 102.24% in 5 years. It is exchanging hands for $141 and is at its 52-week high. In contrast to the other two tech-focused funds, VYM has the highest allocation to the financial sector (21.70%), followed by industrials (13.20%) and technology (12.20%). This is a fund that offers an ideal blend of value and growth.
The fund holds dividend giants such as Chevron (NYSE:CVX), Procter & Gamble (NYSE:PG), JPMorgan Chase, Exxon Mobil (NYSE:XOM), Walmart (NYSE:WMT) and Johnson & Johnson (NYSE:JNJ). While VYM doesn’t offer the highest yield, it is worth holding on to for the significant holdings of quality businesses. The company focuses on quality over quantity and invests in stocks that have outperformed the market. It holds names that have the ability to grow dividends in the long run.
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