3 Schwab ETFs Retirees Can Trust for Steady Income in 2025

It is never too early to start planning for retirement. The sooner you do, the higher your financial security in your golden years. One of the most popular investments is an exchange-traded fund (ETF), which helps build a diversified portfolio at a low cost and generates steady income for you. Charles Schwab offers more than 3,000 low-cost ETFs to choose from. It not only reduces company-specific risk but has a record of generating steady returns even in periods of volatility. Choosing ETFs that invest in dividend stocks can be an ideal way to enjoy regular income.

If you want to enjoy a regular income in your retirement, here are the top Schwab ETFs to consider.

Schwab U.S. Dividend Equity ETF (NYSE ARCA: SCHD) follows the Dow Jones U.S. Dividend 10 Index and has a transparent approach towards stock picking. It has a 30-day SEC yield of 3.97%, and its top three sector holdings include energy (21.08%), consumer staples (19.06%), and healthcare (15.68%). Its expense ratio is only 0.06%, making it a top choice for passive income investors. The fund pays dividends quarterly, and the majority of the companies in the fund pay dividends regularly.

The fund holds 103 stocks, and it invests in companies that have paid dividends for at least 10 consecutive years. Some of the top picks include ConocoPhillips, Coca-Cola, and Verizon Communications. By investing in stable companies, the ETF ensures consistent dividends and a defensive stance. Since the ETF isn’t tech-heavy, it is an ideal pick for those no longer keen on investing in the Magnificent Seven. The ETF only invests 10.4% in the tech sector.

An ideal ETF if you are looking for a growth option, the Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) tracks the Dow Jones Large-Cap Growth Total Stock Market Index. If you want to invest in Nasdaq 100 stocks but do not want to take company-specific risks, this ETF can be a smart alternative.

SCHG focuses on the Magnificent Seven, and its top holdings include Apple, Nvidia, and Microsoft Corporation. Each of these stocks constitutes more than 10% of the ETF. The fund invests more than 50% in the Magnificent Seven stocks. It has a total of 229 stocks, including dividend-paying companies.

SCHG is ideal for investors who are looking for a low-cost option to invest in the most valuable companies in the world. The fund has an expense ratio of 0.04% and can promise capital appreciation. It has a 30-day SEC yield of 0.40%. The fund’s highest holdings include Information technology (44.97%), communication services (12.93%), and consumer discretionary (12.55%).

Similar to the Schwab US Dividend ETF, the Schwab International Dividend Equity ETF (NYSEARCA:SCHY) invests in the top global high-dividend-yielding stocks. The only difference is that this ETF invests in non U.S. companies, giving exposure to some of the biggest companies in the world. It could become tedious to invest in global stocks, but this ETF makes it easier for retirees.

It has a 30-day SEC yield of 4.32%, and it only invests in companies that have a record of paying dividends for 10 consecutive years. This ensures that the stocks are solid investments and have lower volatility. Besides investing in SCHD, this ETF can provide ultimate diversification, steady income, and low volatility. It has an expense ratio of 0.080% and its maximum weightage in a sector is 15%. The ETF’s top holdings lie in consumer staples (15.30%), financials (15.10%), and industrials (13.44%).

SCHY only invests 2.38% in the technology sector, differentiating itself from the tech-heavy ETFs. Its biggest stock holdings include ENEL, which has a dividend yield of 5.86%, Wesfarmers Ltd with a dividend yield of 2.44%, and Vinci SA with a dividend yield of 3.03%.