As retirement approaches or settles in, many Australians shift their investment focus. The goal? Income, capital preservation, and long-term peace of mind.
That's where exchange-traded funds (ETFs) shine. They offer simplicity, diversification, and low fees — making them ideal for retirees looking to grow or maintain wealth without the stress of individual stock picking.
Here are three top ASX ETFs that could be excellent additions to a retirement portfolio in 2025 and beyond.
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Vanguard Australian Shares High Yield ETF (ASX: VHY)
The Vanguard Australian Shares High Yield ETF is a tried-and-tested option for retirees who value income. This ETF holds a basket of Australian companies with high forecast dividend yields, offering the potential for a steady income stream — many with generous franking credits.
Its portfolio features some of the ASX's biggest and most consistent dividend payers, including BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Telstra Group Ltd (ASX: TLS). These are companies with long operating histories, established positions in the economy, and strong track records of returning capital to shareholders.
For retirees, the blend of income and exposure to the Australian economy — plus the tax advantages of franking — makes this fund a compelling choice.
iShares Global Consumer Staples ETF (ASX: IXI)
If the idea of owning stable, recession-resistant businesses appeals to you in retirement, the iShares Global Consumer Staples ETF could be the one. This ASX ETF provides exposure to global consumer staples companies — businesses that sell products people continue to buy in good times and bad.
Think Nestle (SWX: NESN), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Walmart (NYSE: WMT). These are companies that generate consistent earnings, pay regular dividends, and hold strong competitive positions in their markets.
The iShares Global Consumer Staples ETF can add global diversification to an otherwise Australian-heavy portfolio, reducing domestic economic risk while still supporting income needs and defensive stability.
iShares S&P 500 ETF (ASX: IVV)
While retirees may lean toward income and stability, it is still important to maintain some exposure to long-term growth. That's where the iShares S&P 500 ETF — which tracks the S&P 500 index — comes in.
This fund gives you access to 500 of America's largest and most influential companies, including tech giants like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), but also stalwarts such as Costco (NASDAQ: COST), Johnson & Johnson (NYSE: JNJ), and Home Depot (NYSE: HD). These companies span sectors and provide a balanced mix of innovation, reliability, and earnings power.
Even in retirement, owning global leaders with a history of compounding growth can help preserve wealth and keep ahead of inflation.
