ETFs

7 Exceptional Index ETFs for a Secure Retirement Portfolio

Published March 18, 2024

Constructing a resilient and performing retirement portfolio often involves judiciously choosing investment vehicles that balance growth and stability. Index Exchange-Traded Funds (ETFs) are the cornerstone of such a portfolio, harnessing the power of the entire market indices or specific sectors, delivering promising overall returns and diversification at relatively low costs. These index ETFs are particularly suitable for retirees who seek to preserve and grow their nest egg.

Mighty Diversifiers: Index ETFs for Retirement

Among the pantheon of index ETFs, several have emerged as retiree favorites, with portfolios constructed to address the income and growth needs typical of the post-employment years. A specific index ETF has notably outshone peers, achieving average annual gains nearing the 15% mark over the past decade. This remarkable performance signifies the potential of well-chosen index ETFs to substantially contribute to a retiree's financial security.

Investment Spotlight: Microsoft Corporation MSFT

In discussing individual company holdings within the ETFs, MSFT or Microsoft Corporation is often a constituent. As an American multinational technology titan, Microsoft's influence spans across software, electronics, personal computing, and services. Their renowned products, including the Microsoft Windows operating systems, Microsoft Office suite, and Explorer and Edge web browsers, as well as Xbox consoles, and Surface PCs, underscore Microsoft's diversified market presence. Ranked No. 21 on the 2020 Fortune 500 list and celebrated as the world's largest software maker by revenue as of 2016, Microsoft is a principal player in the Big Five of the U.S. IT industry, along with peers such as Google, Apple, Amazon, and Facebook. Microsoft's consistent performance and dominance in the technology sector make it a staple holding in many index ETFs and contributes to their reliability and attractiveness for retirees.

investment, retirement, ETFs