3 ASX ETFs for investors in their 60s

Investing in your 60s can require a different mindset.

At that stage, I think many investors still want growth, but they may also care more about income, diversification, and avoiding unnecessary risk.

That does not mean moving everything into cash. Retirement can last decades, so growth still has a role to play. But I think the balance needs to be more thoughtful.

For investors looking for exchange-traded funds (ETFs), three ASX ETFs stand out to me.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ETF I would consider is the Vanguard Australian Shares High Yield ETF.

As the name suggests, this fund focuses on Australian shares with higher expected dividend yields.

I think that can make it useful for investors in their 60s who want their portfolio to produce income without having to pick every dividend stock themselves.

The ASX has a strong dividend culture. Banks, miners, insurers, infrastructure shares, and other mature businesses often return a meaningful portion of profits to shareholders.

The VHY ETF gives investors a way to access a diversified basket of these income-paying companies.

There are risks. A high yield does not automatically mean a safe yield. Some sectors can be cyclical, and dividends can be cut when earnings fall.

But as part of a broader portfolio, I think the Vanguard Australian Shares High Yield ETF can be a sensible way to generate income from Australian shares while still keeping some exposure to capital growth.

Vanguard Diversified Conservative Index ETF (ASX: VDCO)

The second ETF I would look at is the Vanguard Diversified Conservative Index ETF.

This is a very different type of fund. The VDCO ETF is designed for investors with a lower tolerance for risk. It targets a 70% allocation to income assets and a 30% allocation to growth assets.

That kind of split could make sense for investors in their 60s who want a steadier ride than a share-heavy portfolio may provide.

The ETF invests across a range of underlying funds, giving investors broad diversification across different asset classes. In other words, it is not just about owning Australian shares or global shares. It also includes income assets that can help reduce volatility.

I think that simplicity is appealing. Rather than trying to build a diversified conservative portfolio from scratch, investors can use the VDCO ETF as a ready-made option.

It currently trades with a trailing dividend yield of around 3.5%, which may also appeal to investors looking for income. While this yield is lower than some share-focused income ETFs, the trade-off is a more defensive asset mix.

iShares Global Consumer Staples ETF (ASX: IXI)

The third ETF I would consider in my 60s is the iShares Global Consumer Staples ETF.

This fund provides exposure to global consumer staples companies. I think that is an interesting area for investors nearing retirement because consumer staples businesses tend to sell products people buy in most economic environments. This can include food, drinks, household goods, and personal care products.

These are rarely the most exciting companies on the market. But that is part of the appeal.

During tougher economic periods, consumers may delay buying a new car, renovating a house, or booking a luxury holiday. But they still need groceries, cleaning products, and everyday essentials.

That can give consumer staples companies a more defensive earnings profile.

The IXI ETF also provides global diversification, which is useful for Australian investors. The local market is heavily weighted toward banks and miners, so adding global staples exposure can help broaden a portfolio.

Foolish Takeaway

For investors in their 60s, I think the best ETF portfolio is one that balances income, resilience, and enough growth to keep working over time.

None of these ETFs removes risk completely. But together, I think they could help investors build a portfolio that is more suited to the retirement years than a pure growth strategy.

The post 3 ASX ETFs for investors in their 60s appeared first on The Motley Fool Australia.

More reading

• Building wealth with ASX ETFs? Don’t make these errors
• How to build a $1,000 a month passive income from the ASX
• How to make $12,000 of passive income from these ASX ETFs
• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?
• 3 strong ASX ETFs to buy and hold for a decade or more

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.