Retirees often have unique investment objectives. Using exchange traded funds (ETFs), which can include baskets of stocks with similar features, can help retirees achieve growth, income, and stability in 2025.
To that end, fund manager Invesco offers a wide array of ETFs, each of which has a different focus. Three of these funds, in particular, stand out as ideal investable assets for retirees this year. Try combining one, two, or all three of these Invesco ETFs for potentially reliable results with minimum stress or worry.
RPG ETF for Growth
All three of the following Invesco ETFs provide some opportunity for growth, income, and stability. However, the Invesco S&P 500 Pure Growth ETF (NYSEARCA:RPG) is specially designed to ride the momentum of high achievers in the universe of stocks.
Unlike the 500-member S&P 500, the Invesco S&P 500 Pure Growth ETF is narrower with only 91 holdings. Yet, that’s still a decent amount of diversification for retirees, and the fund’s expense ratio (the annual management fee automatically deducted from the share price) is reasonable at just 0.35%.
The RPG ETF tracks the S&P 500 Pure Growth Index, which uses various complex metrics to rank stocks according to their “growth scores.” Suffice it to say, the 0.35% expense ratio is a small price to pay for the fund managers to calculate which stocks make the cut for the Invesco S&P 500 Pure Growth ETF.
The fund’s 0.31% forward annual dividend yield isn’t spectacular, but remember, growth is the focus here. With the Invesco S&P 500 Pure Growth ETF, retirees will get exposure to powerful price performers like Palantir Technologies (NYSE:PLTR | PLTR Price Prediction), Fortinet (NASDAQ:FTNT), Texas Pacific Land Corp. (NYSE:TPL), and Howmet Aerospace (NYSE:HWM).
Peruse the full holdings list for the Invesco S&P 500 Pure Growth ETF and you’ll find some real movers and shakers. It’s a potpourri of high-growth stocks all in one fund, but nothing too speculative so retirees can hold the RPG ETF and sleep well at night.
RSPA ETF for Income
Steady income is foundational for any fully formed retirement investment strategy. For this crucial objective, retirees can rely on the Invesco S&P 500 Equal Weight Income Advantage ETF (NYSEARCA:RSPA).
As the fund’s name implies, the Invesco S&P 500 Equal Weight Income Advantage ETF includes members of the S&P 500. Actually, the fund reaches beyond the S&P 500 as it includes 523 holdings for extra diversification.
Plus, unlike the market-cap-weighted S&P 500, the RSPA ETF assigns a nearly equal portfolio weight to each stock (more or less). That way, investors won’t need to worry about the fund being too heavily weighted toward technology stocks or any other group of stocks.
What’s in the Invesco S&P 500 Equal Weight Income Advantage ETF? You’ll find small weightings of many dividend champions such as JPMorgan Chase (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), Coca-Cola (NYSE:KO), and Consolidated Edison (NYSE:ED).
Consequently, the Invesco S&P 500 Equal Weight Income Advantage ETF is itself a dividend champion. The fund offers a forward annual dividend yield of around 10%, and the management fee won’t outweigh the yield as the RSPA ETF’s annualized expense ratio is only 0.29%.
SPLV ETF for Stability
While growth and income are central to successful investing, retirees will certainly seek to enhance the stability of their portfolios. With that in mind, retirees can turn to the Invesco S&P 500 Low Volatility ETF (NYSEARCA:SPLV).
With a 0.25% annual expense ratio that won’t break the bank, the Invesco S&P 500 Low Volatility ETF reduces the big up-and-down price moves through diversification. Specifically, the fund includes 100 stocks across a range of market sectors.
Granted, the SPLV ETF’s yield isn’t quite as generous as that of Invesco’s S&P 500 Equal Weight Income Advantage ETF. However, the Invesco S&P 500 Low Volatility ETF’s 1.96% forward annual dividend yield is nothing to sneeze at.
The Invesco S&P 500 Low Volatility ETF narrows down its holdings to the 100 stocks from the S&P 500 with the lowest “realized” (i.e., measuring the past rather than predicting the future) volatility over the past 12 months. The result is a respectable track record of returns for investors with mitigated price swings.
The SPLV ETF’s holdings include small weightings of “steady Eddie” stocks like Coca-Cola, Consolidated Edison, Colgate-Palmolive (NYSE:CL), and Procter & Gamble (NYSE:PG). You won’t find a lot of fast movers here, so the Invesco S&P 500 Low Volatility ETF can be paired up with the Invesco S&P 500 Pure Growth ETF for a perfect growth-and-stability balance.
Then, if you add Invesco’s S&P 500 Equal Weight Income Advantage ETF into the mix, you’ll achieve a trifecta of growth, dividends, and low volatility. Truly, Invesco has covered the three primary pillars of retirement investing with a trio of funds for 2025.
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