Building a retirement portfolio is different to investing for growth alone.
The focus usually shifts toward stability, diversification, and a smoother ride over time, while still allowing for some growth to keep up with inflation.
If I were putting together a simple retirement-focused portfolio using exchange-traded funds (ETFs), these are three I would consider.
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iShares S&P 500 ETF (ASX: IVV)
Even in retirement, I think it makes sense to have exposure to global growth.
The iShares S&P 500 ETF provides access to 500 of the largest companies in the United States. That includes many of the world's leading businesses across technology, healthcare, and consumer sectors.
The reason I would include it is straightforward. The US market has historically been a strong driver of long-term returns. Holding an ETF like the IVV ETF gives you exposure to that growth without needing to pick individual winners.
It also adds diversification beyond the Australian market, which can be more concentrated.
Vanguard Diversified Conservative Index ETF (ASX: VDCO)
The Vanguard Diversified Conservative Index ETF would form the core of the portfolio.
It is designed as a more conservative, balanced ETF, with a mix of equities and fixed income. That helps reduce volatility compared to a portfolio made up entirely of shares.
This is important in retirement. Having exposure to bonds and defensive assets can help smooth returns and reduce the impact of market downturns.
At the same time, the VDCO ETF still includes equities, which allows for some growth over time.
That balance between income, stability, and modest growth is why I think it fits well in a retirement portfolio.
BetaShares Australian Quality ETF (ASX: AQLT)
The final piece I would add is a focus on quality. The BetaShares Australian Quality ETF focuses on Australian stocks with strong balance sheets, high returns on equity, and more stable earnings.
In my view, that can be particularly useful in a retirement portfolio.
Quality companies tend to be more resilient during difficult periods, which can help reduce downside risk. Many also pay dividends, which can support income.
It also provides exposure to Australian stocks, which can complement the global exposure from the IVV ETF.
Foolish Takeaway
A retirement portfolio does not need to be complicated.
For me, the focus would be on combining global growth, defensive balance, and quality companies.
I think the IVV ETF provides exposure to leading global businesses, the VDCO ETF adds diversification and stability through a balanced approach, and the AQLT ETF brings in a focus on higher-quality Australian companies.
Together, I think they offer a simple way to build a retirement portfolio that can generate income, manage risk, and still grow over time.
