5 ETFs That Can Serve as the Bedrock of Any Retirement Portfolio

If you’re looking for a simple way to diversify your portfolio and create a lifetime of passive income, you may want to look at some of these top exchange-traded funds (ETFs).

In most cases, dividend ETFs offer solid diversification, low expense ratios, and tax efficiency. For example, the Global X Super Dividend U.S. ETF (NYSE ARCA:DIV) offers you exposure to a diversified portfolio of respected companies that have a history of paying dividends, which can provide that steady stream of income you may be hunting for.

If that’s what you’re looking for, here are just a few of the top dividend ETFs that can serve as the bedrock of any retirement portfolio.

Key Points About This Article: 

•  Protect your portfolio from market volatility with strong dividend ETFs.
• These ETFs offer strong exposure to portfolio diversification and dividends.
• After a long two-year-plus rally, it may be time to have a portfolio checkup with an experienced financial advisor near you. Click here and find out how easy it is to find one. (Sponsored)

JPMorgan Nasdaq Equity Premium Equity Income ETF

With a yield of 10% and an expense ratio of 0.35%, the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ:JEPQ) generates income by selling options and investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends.

The JEPQ ETF also has 108 holdings, including Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla to name a few. Nearly 41% of the portfolio is made up of information technology stocks. About 12.7% are in communication services, with another 12.2% invested in consumer discretionary stocks.

Even better, JEPQ has been in a strong uptrend since early 2023. From a March 2023 low of about $34, the ETF is now up to $57.01 and could push even higher.

JPMorgan Equity Premium Income Fund

With a yield of 7.12% and an expense ratio of 0.35%, the JPMorgan Equity Premium Income Fund (NYSE ARCA:JEPI) generates income through stock dividends and options premiums. Some of its 129 holdings include Trane Technologies, Meta Platforms, Southern Co., AbbVie, Mastercard, Amazon.com, Microsoft, and ServiceNow to name just a few of the top holdings.

About 14% of the JEPI portfolio is allocated to financial stocks.  About 14.8% is allocated to information technology. And about 12.5% is allocated to healthcare stocks.

Since March 2023, the JEPI ETF ran from about $45 to a recent high of $59.10. From here, we’d like to see it closer to $70 over the next year.

SPDR Portfolio S&P 500 High Dividend ETF 

We can also take a look at the SPDR Portfolio S&P 500 High Dividend ETF (NYSE ARCA: SPYD).

With a yield of 4.37% and an expense ratio of just 0.07%, the SPYD ETF tracks the total return performance of the S&P 500 High Dividend Index. It also seeks to provide a high level of dividend income and the opportunity for appreciation.

Some of its 80 holdings include stocks, such as Philip Morris International, AbbVie, Hasbro, AT&T, CVS Health, Kimberly Clark, and Consolidated Edison to name a few. About 22.73% of the SPDY ETF portfolio is allocated to real estate. Nearly 17% is allocated to utility stocks. About 15.4% is allocated to consumer staples, with about 14.4% in financial stocks.

Since bottoming out in November 2023, the SPYD ETF ran from a low of about $31 to a recent high of $46.88.  Now back to $44.87, it’s just starting to pivot higher after pulling back to its 200-day moving average at about $42 a share.

Schwab U.S. Dividend Equity ETF 

There’s also the Schwab U.S. Dividend Equity ETF (NYSE ARCA:SCHD).

In our opinion, this is one of the best-yielding ETFs to buy and hold long-term. That’s because it tracks the Dow Jones U.S. Dividend 100 Index. Not only does it track the 100 top dividend stocks on that index, but it also tracks some of the most reliable stocks on the market.

With a yield of about 3.7% and an expense ratio of 0.06%, the SCHD ETF has 102 holdings, including Coca-Cola, AbbVie, Amgen, Cisco, Pfizer, and Verizon to name a few. Also, since bottoming out at around $21.37 in late 2023, the SCHD ETF hit a high of $29.45. Nowadays, after testing double-bottom support at around $26.87, the ETF now trades at $28.26. From here, we’d like to see it run to at least $35 near term.

iShares Select Dividend ETF 

We can also look at the iShares Select Dividend ETF (NASDAQ:DVY).

With a yield of 3.64% and an expense ratio of 0.38%, the DVY ETF invests in 98 high-yielding U.S. equities. Some of those holdings include Altria Group, AT&T, Philip Morris, International Paper, Entergy Corp. and Verizon to name a few. About 30% of the ETF is invested in utilities. And 27% is invested in financials. About 10% is invested in consumer staples.

Also, since bottoming out at around $100 in late 2023, the ETF hit a high of $142.04. Nowadays, after pulling back to $128.15, it’s now back to $137. From here, we’d like to see it rally back above $142 initially.

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