Schwab U.S. Dividend Equity ETF (NYSE: SCHD) and Vanguard Dividend Appreciation Index Fund ETF (NYSE: VIG) are both geared towards investors seeking a combination of dividend income and sufficient growth to maintain the basic principle size of the nest egg for the duration.

The aforementioned ETFs have different index benchmarks and investment focus, despite being allocated to the same category.

Individual investment considerations and preference for higher income or better long-term capital appreciation are greater determinants of suitability, once the other criteria is evaluated.

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Exchange Traded Funds (ETF) predicated on tracking a particular index are normally passively managed and closely follow their benchmark. Retirees seeking a consistent level of income while notching enough growth to keep the size of their nest egg from eroding may choose ETFs over individual stocks. This can be due to intimidation over the notion of managing their own portfolios, the comparative ease with which ETFs reduce risk through diversification, and the relatively low expense ratios, which means that the bulk of the invested funds are going into the investment itself, rather than irrecoverable fees.