3 ETFs for Lifetime Passive Income: SCHD, VIG, and BIV Highlighted

Investors seeking sustainable passive income should consider exchange-traded funds (ETFs) for their simplicity and diversification benefits. Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Dividend Appreciation ETF (VIG) stand out on the equity side, while Vanguard Intermediate-Term Bond ETF (BIV) offers fixed-income exposure.

SCHD employs a rigorous screening process, selecting 100 top-tier U.S. dividend stocks based on financial health, yield, and growth metrics. The methodology mirrors what astute investors WOULD manually seek: companies with decade-long dividend growth, strong balance sheets, and robust cash flows. VIG takes a similar approach but focuses on consistent dividend increasers across market caps.

For bond allocations, BIV provides straightforward exposure to intermediate-term U.S. government and corporate debt. The trio demonstrates how ETFs can systematically capture income-generating assets that might otherwise require extensive research.