--- title: "Vanguard and Schwab strategists explain the appeal of ETFs for retirees" type: "News" locale: "en" url: "https://longbridge.com/en/news/288083288.md" description: "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." datetime: "2026-05-29T14:17:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288083288.md) - [en](https://longbridge.com/en/news/288083288.md) - [zh-HK](https://longbridge.com/zh-HK/news/288083288.md) --- # Vanguard and Schwab strategists explain the appeal of ETFs for retirees Americans who are retired or are approaching retirement and are evaluating their investment portfolios can turn to exchange-traded funds (ETFs) that may offer built-in diversification for core holdings or exposure to specific sectors. 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&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. 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. Retirees considering investing 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. **WHAT ARE ACTIVE ETFS AND HOW ARE THEY RESHAPING HOW AMERICANS INVEST?** Investors should take their retirement needs and risk tolerance into consideration when evaluating ETF investment options. (Michael M. Santiago/Getty Images) "In retirement, simplicity and discipline often matter more than complexity and ETFs can help deliver both when used thoughtfully," Carole Okigbo, global head of ETF capital markets and broker and index relations at Vanguard, told FOX Business. "Retirees should start with their goals, including how much income they need, their time horizon, and their comfort level with market swings. 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," Okigbo added. **US ETF ASSETS UNDER MANAGEMENT TO MORE THAN DOUBLE TO $25T BY 2030, CITIGROUP SAYS** Inga Rachwald, senior investment strategist at Schwab Asset Management, told FOX Business that "the selection of highly liquid ETFs would be of high importance to a retiree so that they have the ease of accessing their money when needed." "Many ETFs track broad asset classes or indices so you get the benefit of diversification. Potential tax efficiency is another likely important component for retirees," Rachwald added. ETFs can track broad indexes or be focused on specific sectors or asset classes. (Reuters/Jeenah Moon) **IS BUYING A SINGLE INDEX ETF SMARTER THAN PICKING INDIVIDUAL STOCKS?** ### Examples of ETFs 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 dividends. "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," Rachwald said. "SCHI would similarly provide some incremental yield coming from investment grade corporates who have bolstered balance sheets through the economic cycle," she added. Vanguard's Okigbo noted similarly that her firm's ETF offerings include broad market ETFs as well as bond ETFs that can serve as core components of a retirement portfolio. "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," Okigbo said. Ticker Security Last Change Change % VTI VANGUARD TOTAL STOCK MARKET ETF - USD DIS 371.66 +2.30 +0.62% VCRB VANGUARD MALVERN FUNDS CORE BD ETF USD 77.24 +0.16 +0.20% SCHD SCHWAB STRATEGIC TR US DIVIDEND EQUITY ETF 32.63 +0.08 +0.25% SCHZ SCHWAB STRATEGIC TR US AGGREGATE BD ETF 23.15 +0.04 +0.17% SCCR SCHWAB STRATEGIC TR CORE BOND ETF 25.57 +0.06 +0.24% SCHI SCHWAB STRATEGIC TR 5-10 YEAR CORPORATE BOND ET 22.68 +0.05 +0.22% **GET FOX BUSINESS ON THE GO BY CLICKING HERE** ### Related Stocks - [SCHW.US](https://longbridge.com/en/quote/SCHW.US.md) - [IGSB.US](https://longbridge.com/en/quote/IGSB.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [JABS.US](https://longbridge.com/en/quote/JABS.US.md) - [IEF.US](https://longbridge.com/en/quote/IEF.US.md) - [BIL.US](https://longbridge.com/en/quote/BIL.US.md) - [VTV.US](https://longbridge.com/en/quote/VTV.US.md) - [IVV.US](https://longbridge.com/en/quote/IVV.US.md) - [ABI.US](https://longbridge.com/en/quote/ABI.US.md) - [SLYV.US](https://longbridge.com/en/quote/SLYV.US.md) - [IVOV.US](https://longbridge.com/en/quote/IVOV.US.md) - [FNCL.US](https://longbridge.com/en/quote/FNCL.US.md) - [SCHG.US](https://longbridge.com/en/quote/SCHG.US.md) - [MBB.US](https://longbridge.com/en/quote/MBB.US.md) - [AGG.US](https://longbridge.com/en/quote/AGG.US.md) - [IWN.US](https://longbridge.com/en/quote/IWN.US.md) - [VFH.US](https://longbridge.com/en/quote/VFH.US.md) - [AVLV.US](https://longbridge.com/en/quote/AVLV.US.md) - [LQD.US](https://longbridge.com/en/quote/LQD.US.md) - [VCIT.US](https://longbridge.com/en/quote/VCIT.US.md) - [VOE.US](https://longbridge.com/en/quote/VOE.US.md) - [SPIB.US](https://longbridge.com/en/quote/SPIB.US.md) - [MGK.US](https://longbridge.com/en/quote/MGK.US.md) - [IUSG.US](https://longbridge.com/en/quote/IUSG.US.md) - [SHV.US](https://longbridge.com/en/quote/SHV.US.md) - [VUG.US](https://longbridge.com/en/quote/VUG.US.md) - [GOVT.US](https://longbridge.com/en/quote/GOVT.US.md) - [SCYB.US](https://longbridge.com/en/quote/SCYB.US.md) - [IAI.US](https://longbridge.com/en/quote/IAI.US.md) - [SCHB.US](https://longbridge.com/en/quote/SCHB.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [VBK.US](https://longbridge.com/en/quote/VBK.US.md) - [AVUV.US](https://longbridge.com/en/quote/AVUV.US.md) - [VTI.US](https://longbridge.com/en/quote/VTI.US.md) - [SCCR.US](https://longbridge.com/en/quote/SCCR.US.md) - [DABS.US](https://longbridge.com/en/quote/DABS.US.md) - [SCHJ.US](https://longbridge.com/en/quote/SCHJ.US.md) - [VCSH.US](https://longbridge.com/en/quote/VCSH.US.md) - [JAAA.US](https://longbridge.com/en/quote/JAAA.US.md) - [XLF.US](https://longbridge.com/en/quote/XLF.US.md) - [SCHI.US](https://longbridge.com/en/quote/SCHI.US.md) - [QQQ.US](https://longbridge.com/en/quote/QQQ.US.md) - [SHY.US](https://longbridge.com/en/quote/SHY.US.md) - [VCLT.US](https://longbridge.com/en/quote/VCLT.US.md) - [BND.US](https://longbridge.com/en/quote/BND.US.md) - [TLT.US](https://longbridge.com/en/quote/TLT.US.md) - [IWF.US](https://longbridge.com/en/quote/IWF.US.md) - [C.US](https://longbridge.com/en/quote/C.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [SCHD.US](https://longbridge.com/en/quote/SCHD.US.md) - [SCHZ.US](https://longbridge.com/en/quote/SCHZ.US.md) - [VCRB.US](https://longbridge.com/en/quote/VCRB.US.md) - [SCHW-D.US](https://longbridge.com/en/quote/SCHW-D.US.md) - [SCHW-J.US](https://longbridge.com/en/quote/SCHW-J.US.md) - [C-R.US](https://longbridge.com/en/quote/C-R.US.md) ## Related News & Research - [Is Schwab’s 24/7 Crypto Futures and $1 Fractional Access Altering The Investment Case For Charles Schwab (SCHW)?](https://longbridge.com/en/news/289119714.md) - [Charles Schwab (NYSE:SCHW) Sets New 1-Year Low - What's Next?](https://longbridge.com/en/news/287805892.md) - [27,190 Shares in The Charles Schwab Corporation $SCHW Bought by Capital International Inc. 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