The Only 2 Vanguard ETFs Retirees Need for Growth and Income in 2026

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':"";if(r){var a=n.promos.showYahooLogo?"":"yns-no-logo";r=r.replace("{notifOnboardBtnLabel}",n.promos.notifOnboardBtnLabel).replace("{notifOnboardMsg}",n.promos.notifOnboardMsg).replace("{subscriptionTopic}",n.promos.subscriptionTopic).replace("{noLogoClass}",a).replace("{promoLogo}",n.promos.promoLogo)}var s=t.newCount>n.panel.maxCount?t.newCount:"",c=n.panel.notificationCenterPath,l=c?"":R,u=n.panel.headerMsg?"":" "+R,d=c?U:"",p=void 0;t.count?p=t.markup:p='{emptyPanelMsg}'.replace("{emptyPanelMsg}",n.panel.emptyPanelMsg);return e=e.replace("{notifMarkup}",p).replace("{promoMarkup}",r).replace("{hideClass}",l).replace("{notifCenterLink}",c).replace("{paddingClass}",d).replace("{headerMsg}",n.panel.headerMsg).replace("{hideHeaderClass}",u).replace(/{notificationCenterNavMsg}/g,n.panel.notificationCenterNavMsg).replace(/{newCount}/g,s)}},{key:"render",value:function(e,t){var n=this;if(n._panelNode){var o=void 0,i=n._panelNode,r=void 0,a=void 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A 35% VIG and 65% VTC allocation closely mirrors its structure while reducing fees and improving net returns.Quality equities and investment-grade credit drive the strategy. VIG provides dividend growth , while VTC delivers income through diversified corporate bonds.Lower fees can meaningfully improve outcomes. The ETF mix slightly outperformed Wellesley historically, largely due to its significantly lower expense ratio.If you're focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactly what The Definitive Guide to Retirement Income was created to solve, and it's free today. Read more hereIf I were retired today and had to put all my money into a single fund, I’d probably pick the Vanguard Wellesley Income Fund Investor Shares (VWINX).This is one of Vanguard’s longest-running actively managed mutual funds, dating back to 1970, and it has delivered a strong 9.17% annualized return since inception, before taxes.If you're focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactly what The Definitive Guide to Retirement Income was created to solve, and it's free today. Read more hereAbout one-third is allocated to stocks and two-thirds to bonds. The equity sleeve focuses on companies with above-average dividend yield and growth, screened down to a portfolio of fewer than 100 names with reasonable valuations. The bond side primarily holds investment-grade corporate bonds across short, intermediate, and long durations.The 3.5% 30-day SEC yield is solid, and a 0.22% expense ratio is reasonable for active management. It’s a conservative, income-oriented portfolio that has worked well over time. Still, it’s not perfect. The $3,000 minimum investment can be a hurdle, and if you want the Admiral Shares with a lower 0.15% expense ratio and slightly higher yield, you need $50,000.The good news is you can replicate a very similar strategy using ETFs. In fact, based on the data, you can slightly outperform Wellesley while maintaining a similar risk and return profile, largely thanks to lower fees. Here’s how.To replace Wellesley’s one-third allocation to stocks, you can allocate 35% to the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG).For a 0.04% expense ratio, you get exposure to the S&P U.S. Dividend Growers Index.To be included, companies must have increased dividends for at least 10 consecutive years. The index also excludes the top quartile of highest-yielding stocks, which helps avoid yield traps with weaker fundamentals. 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