<div id="readability-page-1"><p>Americans who are retired or are approaching retirement and are evaluating their investment portfolios can turn to <u>exchange-traded funds (ETFs)</u> that may offer built-in diversification for core holdings or exposure to specific sectors.</p> <p>ETFs are securities that typically track indexes and allow investors to get exposure to a number of companies included in the index. For example, an ETF that tracks the S&amp;P 500 allows an investor to purchase a single share of the ETF that holds shares in all 500 companies in the index, making it easy to get exposure to a broad swath of companies. </p><p>Other types of ETFs may focus on providing investors with yield from dividends or bonds, classifications of companies like growth or value-oriented firms, specific sectors of the economy. Some may be actively managed to maximize returns, which typically entails higher expense ratios, while many ETFs are passively managed, which can involve lower expenses.</p> <p><u>Retirees considering investing</u> in ETFs will want to consider their risk tolerance, along with the diversification of a given ETF, its expense ratios, trading volumes and liquidity, as well as other factors like tax efficiency as they weigh an investment.</p> <p><strong><u>WHAT ARE ACTIVE ETFS AND HOW ARE THEY RESHAPING HOW AMERICANS INVEST?</u></strong></p><div><div>    <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/04/931/523/Investing-Markets.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/04/931/523/Investing-Markets.jpg/query-dGw9MSZ2ZT0x"/></div> <p><span>Investors should take their retirement needs and risk tolerance into consideration when evaluating ETF investment options.</span><span> (Michael M. Santiago/Getty Images)</span></p></div><p>&#34;In retirement, simplicity and discipline often matter more than complexity and ETFs can help deliver both when used thoughtfully,&#34; Carole Okigbo, global head of ETF capital markets and broker and index relations at Vanguard, told FOX Business. </p><p>&#34;Retirees should start with their goals, including how much income they need, their time horizon, and their comfort level with <u>market swings</u>. ETFs can be very effective building blocks, but it's important to focus on total return, not just yield, and ensure each investment plays a clear role in supporting long-term retirement income needs,&#34; Okigbo added.</p><p><strong><u>US ETF ASSETS UNDER MANAGEMENT TO MORE THAN DOUBLE TO $25T BY 2030, CITIGROUP SAYS</u></strong></p><p>Inga Rachwald, senior investment strategist at Schwab Asset Management, told FOX Business that &#34;the selection of <u>highly liquid ETFs</u> would be of high importance to a retiree so that they have the ease of accessing their money when needed.&#34; </p><p>&#34;Many ETFs track broad asset classes or indices so you get the <u>benefit of diversification</u>. Potential tax efficiency is another likely important component for retirees,&#34; Rachwald added.</p><div><div>    <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2026/05/931/523/trading-nyse_02.jpg/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2026/05/931/523/trading-nyse_02.jpg/query-dGw9MSZ2ZT0x"/></div> <p><span>ETFs can track broad indexes or be focused on specific sectors or asset classes.</span><span> (Reuters/Jeenah Moon)</span></p></div><p><strong><u>IS BUYING A SINGLE INDEX ETF SMARTER THAN PICKING INDIVIDUAL STOCKS?</u></strong></p><h3>Examples of ETFs</h3><p>Schwab's Rachwald cited several examples of ETFs offered by her firm, such as SCHD provides dividend income and focuses on companies that grow their <u>dividends</u>.</p><p>&#34;SCHZ could serve as the core of a fixed income portfolio, providing high quality income with intermediate duration exposure. SCCR is an alternative to SCHZ if investors would like to source an active strategy in the high-quality, intermediate duration core bond space,&#34; Rachwald said. </p><p>&#34;SCHI would similarly provide some incremental yield coming from investment grade corporates who have bolstered balance sheets through the economic cycle,&#34; she added.</p><p>Vanguard's Okigbo noted similarly that her firm's ETF offerings include broad market ETFs as well as <u>bond ETFs</u> that can serve as core components of a retirement portfolio.</p><p>&#34;Many retirees benefit from starting with low-cost, broadly-diversified ETFs like Vanguard Total Stock Market (VTI) and Vanguard Core Bond (VCRB) and building from there,&#34; Okigbo said.</p><table><thead><tr><th>Ticker</th> <th>Security</th> <th>Last</th> <th>Change</th> <th>Change %</th></tr></thead> <tbody><tr><td>VTI</td> <td>VANGUARD TOTAL STOCK MARKET ETF - USD DIS</td> <td>371.66</td> <td>+2.30</td> <td>        +0.62%      </td></tr><tr><td>VCRB</td> <td>VANGUARD MALVERN FUNDS CORE BD ETF USD</td> <td>77.24</td> <td>+0.16</td> <td>        +0.20%      </td></tr><tr><td>SCHD</td> <td>SCHWAB STRATEGIC TR US DIVIDEND EQUITY ETF</td> <td>32.63</td> <td>+0.08</td> <td>        +0.25%      </td></tr><tr><td>SCHZ</td> <td>SCHWAB STRATEGIC TR US AGGREGATE BD ETF</td> <td>23.15</td> <td>+0.04</td> <td>        +0.17%      </td></tr><tr><td>SCCR</td> <td>SCHWAB STRATEGIC TR CORE BOND ETF</td> <td>25.57</td> <td>+0.06</td> <td>        +0.24%      </td></tr><tr><td>SCHI</td> <td>SCHWAB STRATEGIC TR 5-10 YEAR CORPORATE BOND ET</td> <td>22.68</td> <td>+0.05</td> <td>        +0.22%      </td></tr> <tr><td colspan="5"></td></tr></tbody></table><p><strong><u>GET FOX BUSINESS ON THE GO BY CLICKING HERE</u></strong></p></div>

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<p>Vanguard and Schwab strategists highlight ETFs as effective tools for retirees, offering diversification, tax efficiency, and liquidity. Experts advise focusing on total return, risk tolerance, and low-cost broad-market or bond ETFs to support long-term income needs.</p>

- Retirees evaluating investment portfolios can consider exchange-traded funds (ETFs) for diversification and sector exposure.  
- ETFs track indices and can include various focuses, such as dividend yield or specific sectors, with important factors like expense ratios and liquidity influencing choices.  
- Experts emphasize that retirees should align ETF investments with their income needs and risk tolerance while aiming for total returns.

FOX Business

Charles Schwab

iShares Trust iShares 1-5 Year Invest Grade Corp Bond ETF

VG S&P 500

Janus Henderson Asset-Backed Secs ETF

iShares 7-10 Year Treasury Bond ETF

SPDR Bloomberg 1-3 Month T-Bill ETF

VG Value

iShares Core S&P 500

VictoryShares Pioneer Asst-Based Inc ETF

SPDR S&P 600 S-Cp Val

VG S&P M-Cap 400 Val

Fidelity MSCI Financials Index

Schw Us L-Cp Grw

iShares Barclays MBS Fixed Rate Bd

iShares Core US Aggregate Bd

ISHRS Russ 2000 Val

VG Financial

Avantis US Large Cap Value ETF

iShares iBoxx  Invt

Vanguard Intermediate Term Bd

VG Mid-Cap Val

SPDR Intermed Term

VG Mga Cap 300 Grw

iShares Core S&P US Growth

iShares Barclays Short Treasury

VG Growth

ISHRS Us Trsry Bd

Schwab High Yield Bond ETF

ISHRS Us Brokers & Sec Exchg

Schw Us Broad Mkt

SPDR S&P 500

VG S-Cp Grw

Avantis U.S. Small Cap Value

VG Total Stock

Schwab® Core Bond ETF

DoubleLine Asset-Backed Securities ETF

Schwab 1-5 Year Corp Bond ETF

Vanguard Short Term Bd

Janus Henderson AAA CLO ETF

Financial Select Sector SPDR Fund

Schwab 5-10 Year Corp Bond ETF

Invesco QQQ Trust

iShares Barclays 1-3 Yr Treasury

Vanguard Long Term Bd

Vanguard Total Bond Market ETF

iShares barclays 20+ Yr Treasury Bd

ISHRS Russ 1000 Growth

Citigroup

S&P 500

Schwab US Div Eq

Schw Us Agg Bd

Vanguard Core Bond ETF

SCHWAB(CHARLES)CORP 5.95% DEP SHS REP 1/40 NON CUM PERP PF D

SCHWAB(CHARLES)CORP 4.450% DEP SHS REP 1/40TH N-CUM PFD SERJ

CITIGROUP INC 6.250 NON CUM SER II PFD WI

Vanguard and Schwab strategists explain the appeal of ETFs for retirees