Retirees with $750,000 portfolios can generate steady income by investing in a simple 50/50 mix of two ETFs: iShares Short-Term National Muni Bond ETF (SUB) and Schwab U.S. Dividend Equity ETF (SCHD). SUB offers tax-exempt income from high-quality short-term municipal bonds, while SCHD provides qualified dividends from large-cap value stocks with strong fundamentals. This combination yields about 2.95%, translating to roughly $22,125 annually, with low fees and favorable tax treatment, making it a practical approach for income and capital preservation in retirement.
The SCHD ETF has returned just under 2% in the past month, outperforming the S&P 500 ETF (SPY) by nearly 1%. Year-to-date, about 30 SCHD holdings have more than doubled the returns of SPY, which has returned 9.8%. Additionally, 31 SCHD holdings are t...
The Schwab U.S. Dividend Equity ETF (SCHD) has gained 20% year-to-date, outperforming the S&P 500's 10% rise. SCHD focuses on large-cap companies with strong dividend histories and value metrics, avoiding mega-cap tech stocks that led recent market r...
