Instead of taking a reverse mortgage on a paid-off home, which involves debt and risks like fees and losing the house, investors can consider four income-focused ETFs: Vanguard High Dividend Yield ETF (VYM), Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), iShares Preferred and Income Securities ETF (PFF), and iShares U.S. Treasury Bond ETF (GOVT). These ETFs provide regular income through dividends or interest without putting the home at risk. While they may not match the immediate cash of a reverse mortgage, they avoid debt, fees, and potential loss of home ownership, making them a safer alternative for generating income from home equity.
The Vanguard High Dividend Yield Index Fund (VYM) has delivered a strong 16% total return year-to-date in 2026, outperforming the S&P 500 Trust (SPY) while maintaining lower volatility. The fund's attractive valuation at 16.1 times price-to-earnings,...
Vanguard's VYM ETF, marketed as a high dividend income fund, currently yields about 2.2%, lower than many retirees expect. This is because VYM excludes real estate investment trusts (REITs) from its portfolio due to tax methodology, removing a signif...
