If Social Security Already Works Like a Bond in Your Portfolio at 70, These 3 ETFs Let the Rest of the Money Do More

If your Social Security check covers groceries, utilities, and the property tax bill, some financial planners would say that steady income is serving a role similar to a bond position in your retirement plan. Seen that way, the rest of your money can work harder, and three stock funds fit the job: iShares MSCI ACWI ETF (NASDAQ:ACWI), T. Rowe Price Dividend Growth ETF (NYSEARCA:TDVG) and State Street SPDR MSCI USA StrategicFactors ETF (NYSEARCA:QUS).

Why Social Security Can Act Like a Bond

Many retirees build a portfolio as if it has to do everything alone: cover spending, absorb shocks, and still grow. Some advisors instead count Social Security as part of the allocation. It is a planning framework, and you can take it or leave it. The logic is simple.

Benefits are paid for life and adjust each year for inflation. For 2026, the Social Security Administration set the cost-of-living adjustment at 2.8%, according to its fact sheet. Few bonds pay for life and give you a raise for inflation every year.

Where the Bond Comparison Falls Short

You can sell a bond. You can’t sell a benefit. There is no lump sum to tap in an emergency, and the benefit generally does not pass to heirs, apart from survivor benefits.

Financing matters too. According to the 2026 Social Security Trustees Report, the trust fund that pays retirement and survivor benefits is expected to be depleted in the fourth quarter of 2032, after which incoming revenue would cover 78% of scheduled benefits unless Congress acts. The combined retirement and disability funds are expected to last into the third quarter of 2034, with 83% payable after that. These are the Trustees’ projections, and legislation could change them.

What This Frees Your Portfolio to Do

If Social Security already provides a stable income base, your portfolio may be able to hold more growth exposure than a stand-alone view suggests. Whether you use that room is your call, and it depends on how you handle a falling market. You still need a cash or short-term reserve for near-term spending and emergencies (we laid out how to turn a lump sum into something that acts like a paycheck, mix and withdrawal order included, in a free guide here). All three funds below hold stocks, so that reserve has to sit somewhere else.

ACWI: Global Growth in a Single Ticker

ACWI follows the MSCI ACWI Index, which covers large and mid-sized companies across the U.S., other developed markets, plus emerging markets. Apple was the largest position at about 4.46% of assets as of July 31, and the holdings run from Amazon and Alphabet to Canadian banks and Chinese firms such as Futu Holdings. With roughly $32.5 billion in assets, it is a large, established fund.

The fund has returned 10.63% over the past year and 223.27% over 10 years. It has also slid 5.38% over the past month. That volatility is the price of a growth core.

TDVG: Income Designed to Climb Over Time

TDVG is actively managed, with no index to follow. Its managers normally invest at least 80% of assets in stocks with a strong record of paying dividends or that are expected to pay them over time. It pays quarterly, and trailing 12-month distributions totaled $0.4891 per share against a recent price near $50.27.

The payout has risen over the long run but varies from quarter to quarter. The December 2020 payment was $0.0762. The three most recent were $0.1403, $0.115, and $0.1137. Dividend growth is a trend the managers look for, and it comes with no promise. Shares have returned 15.44% over the past year and 55.49% over five years.

QUS: A Steadier U.S. Core Built on Factors

QUS follows the MSCI USA Factor Mix A-Series Index, which combines three equally weighted subindexes built around value, quality, and minimum volatility. The aim is U.S. stock exposure with a smoother ride. Apple, Meta Platforms and Johnson & Johnson ranked among its biggest positions as of June 30, with assets of roughly $1.5 billion.

It has returned 15.54% over the past year, 63.63% over five years and 275.31% over 10 years. Factor screens can soften a decline. They can’t prevent one.

Trade-Offs to Weigh Before You Lean In

All three funds hold stocks, and they can fall at the same time, as recent sessions have shown. Apple sits near the top of both ACWI and QUS, so the two overlap. With TDVG, your results depend on the managers’ picks, and actively managed funds often charge more than index trackers, so check each fund’s current expense ratio in its prospectus. Social Security’s expected financing gap also means the income base you count on could shrink unless Congress acts.

Still, if you are 70 and your basic bills are covered, these three funds give the rest of your money clear jobs: global growth, a rising income stream and a steadier U.S. core. That gives the portfolio a chance to keep growing through retirement.

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