Retirement investors have thousands of exchange-traded funds (ETFs) to choose from. That can make building a portfolio feel daunting, but it doesn’t have to be. By narrowing down the list to a handful of major issuers offering ultra-low-cost diversified funds, you can find a list of ideal ETFs pretty quickly.
Vanguard is my personal favorite ETF provider. Its lineup includes the broad market, sectors, regions, and thematic funds, giving most retail investors everything they need to construct a well-rounded retirement portfolio, whether you’re just starting out or nearing the finish line.
The current environment is creating a lot of short-term noise. If you can cut through that and focus on long-term wealth creation, a handful of high-quality ETFs make ideal choices when saving for retirement.
Here are four to consider for building out the core of your retirement portfolio.
Image source: Getty Images.
Key takeaways
- Saving for retirement should involve more than just investing in the S&P 500, although that can still be a good starting point.
- Adding international stocks, dividend stocks, and fixed income can turn a U.S. large-cap-focused portfolio into something more well-rounded.
- The S&P 500 may be expensive at current levels, which is why adding international and dividend stocks can reduce risk and smooth volatility.
- Fixed income hasn’t been popular for years, but the steady income stream can enhance total returns.
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (VOO +0.29%) is likely already the core of many people’s retirement portfolios. Its focus on the largest and most successful U.S. companies makes it a no-brainer for long-term investing.
Today’s Change
(0.29%) $1.94
Current Price
$662.52
Key Data Points
Day’s Range
$662.38 – $666.41
52wk Range
$511.10 – $666.41
Volume
5.4M
If you want to expand beyond just large caps and add small- and mid-cap stocks, consider the Vanguard Total Stock Market ETF (VTI +0.31%). It has the same ultra-low 0.03% expense ratio as the Vanguard S&P 500 ETF, but it’s more diversified and could capture the potential of investing in smaller companies.
2. Vanguard Total International Stock ETF
Many people have stayed away from foreign stocks due to years of underperformance relative to the S&P 500. That started to change in 2025, underscoring why investors should still consider allocating at least some of their retirement savings to overseas investments.
The Vanguard Total International Stock ETF (VXUS 0.11%) invests in foreign equities in the same way that the Vanguard Total Stock Market ETF invests in U.S. stocks. It’s comprehensive across both developed and emerging markets and uses diversification to mitigate downside risk.
3. Vanguard Dividend Appreciation ETF
Dividend stocks are one of the most logical additions to a retirement portfolio. As the S&P 500 essentially includes the largest U.S. companies, dividend ETFs focus on companies with the revenues, profits, and cash flows necessary to consistently reward shareholders over time.
The Vanguard Dividend Appreciation ETF (VIG 0.08%) targets companies with at least 10 years of consecutive annual dividend growth. This steady, predictable income helps establish an important source of return that the broader U.S. market doesn’t offer right now.
4. Vanguard Total Bond Market ETF
The Vanguard Total Bond Market ETF (BND +0.14%) might not be the most exciting fund in the world, but fixed income can help manage the risk of an equity-heavy portfolio. In down markets, it can protect against some downside, while the 4.3% yield offers a steady return even in volatile markets.
| ETF | Ticker | Expense Ratio | Yield | Assets Under Management |
|---|---|---|---|---|
| Vanguard S&P 500 ETF | VOO | 0.03% | 1.2% | $918B |
| Vanguard Total International Stock ETF | VXUS | 0.05% | 2.8% | $144B |
| Vanguard Dividend Appreciation ETF | VIG | 0.04% | 1.7% | $105B |
| Vanguard Total Bond Market ETF | BND | 0.03% | 4.3% | $154B |
Data source: Vanguard fund websites.
These four Vanguard ETFs check all the boxes you’d want in a retirement investment. They’re ultra-cheap to own, huge, highly liquid, broadly diversified, and don’t take any undue or unusual risks.
That’s what a core retirement portfolio should look like. There’s nothing wrong with adding a thematic or more targeted ETF around the edges. But each of these does a lot of work to make your retirement investing journey easier.
David Dierking has positions in Vanguard Dividend Appreciation ETF, Vanguard Total International Stock ETF, and Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Vanguard Dividend Appreciation ETF, Vanguard S&P 500 ETF, and Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy.