The asset-management arm of Goldman Sachs has been busy making large acquisitions in the U.S. exchange-traded fund (ETF) industry.

On April 2, 2026, Goldman announced its acquisition of Innovator Capital Management, one of the largest providers of buffered ETFs, which at the time managed $31 billion across 171 products. On Aug. 12, Goldman announced another deal, this time its planned acquisition of NEOS Investments, which at the time managed $30 billion across 19 options-based income ETFs.

While Innovator ETFs focus primarily on limiting losses and NEOS ETFs emphasize generating high distributions, both cater to an increasingly important demographic for asset managers: older investors seeking income and greater control over portfolio risk.

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MarketWatch, Barron’s and The Wall Street Journal have discussed Wall Street’s growing appetite for what has become known as “boomer candy.” These are funds packaged around features particularly appealing to investors approaching retirement, including high distributions, downside protection, lower volatility and more predictable investment outcomes.

It’s not hard to see the appeal of boomer candy. Younger investors accumulating wealth can generally emphasize capital appreciation and tolerate greater volatility because they have decades to recover from bear markets. Recent retirees face a different problem. Preserving principal becomes more important once regular portfolio withdrawals begin and employment income disappears.

One reason is sequence-of-returns risk. A severe bear market during the first few years of retirement can be particularly damaging because investors may have to sell depressed assets to fund living expenses. Those withdrawals leave less capital available to participate in the eventual recovery.

Income is the other reason. The 4% rule provides a starting point for retirement planning, calling for an initial withdrawal of 4% of portfolio value followed by inflation adjustments. Many income-oriented ETFs can produce distributions above that level, reducing the need to sell shares for cash flow.

That said, retirement investors don’t necessarily need the newest generation of boomer candy ETFs to address these objectives. A number of time-tested mutual funds and ETFs can combine income and lower volatility, often with lower fees and considerably less complexity.

Here are seven of the best funds for retirement:

iShares Core 60/40 Balanced Allocation ETF (AOR)

“We focus on a few critical factors when selecting funds for retirees: fees, historical performance and how volatile a fund is compared to its benchmark,” says Brandon Clark, director of financial planning at The Clark Group Asset Management. “To manage this balance, we often use ‘pairings’ of funds that are designed to offset each other’s risks.” An all-in-one ETF like AOR can outsource this strategy.

AOR uses a fund-of-funds structure consisting of seven iShares ETFs designed to track the S&P Target Risk Balanced Index. Its 60/40 stock-bond allocation is globally diversified on both sides of the portfolio, primarily using low-cost, index-based building blocks. AOR charges a 0.15% expense ratio and currently pays a 2.6% 30-day SEC yield. The ETF has attracted over $3.7 billion in assets under management.

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

“By carefully analyzing beta and comparing across asset classes such as large-cap growth versus large-cap value, we can pair funds in a way that potentially lowers overall risk while still capturing attractive returns, all while keeping costs low,” Clark explains. “The result is what retirement-focused investors ultimately want: stronger risk-adjusted returns, not just raw performance numbers.”

For example, the S&P 500 is currently tilted toward growth stocks carrying higher valuations and relatively low dividend yields. A potential complement is SPHD, which isolates 50 S&P 500 stocks exhibiting both high dividend yields and low volatility. After deducting its 0.3% expense ratio, SPHD currently pays a 4.2% 30-day SEC yield, with the added convenience of monthly distributions.

Amplify CWP Enhanced Dividend Income ETF (DIVO)

Part of the appeal of boomer candy is that many retirees are reluctant to sell shares to fund withdrawals because doing so can feel like depleting principal, while fund distributions feel more like income. DIVO targets that preference with a portfolio of large-cap stocks screened for factors such as return on equity, cash flow and dividend growth, supplemented by covered calls on individual holdings.

“DIVO is designed to deliver consistent, tax-efficient income by combining dividend-paying large-cap stocks with a tactical covered-call strategy,” explains Nathan Miller, vice president of product development at Amplify ETFs. “Returns come from three sources: dividends, option premiums and capital appreciation.” DIVO charges a 0.56% expense ratio and currently pays a 4.8% annualized yield.

Vanguard LifeStrategy 40/60 Fund (VSCGX)

“Vanguard’s LifeStrategy Funds are a series of portfolios that feature various asset allocation strategies that align with an investor’s risk tolerance,” says Brian Miller, head of multi-asset product management at Vanguard. “These broadly diversified, low-cost funds are designed to provide a complete portfolio in a single fund and aim to help investors manage risk while growing their savings.”

VSCGX is more conservative than AOR, combining a similar mix of globally diversified stocks and bonds but in a 40/60 allocation that emphasizes capital preservation and current income over long-term growth. The result is a higher 3.1% 30-day SEC yield after deducting a low 0.1% expense ratio. As a mutual fund, however, VSCGX requires a minimum initial investment of $3,000.

Vanguard Target Retirement 2030 Fund (VTHRX)

“For more than 20 years, Vanguard’s target retirement funds have provided a low-cost, highly diversified index-based approach designed to get investors to and through retirement,” Brian Miller says. Target-date funds automate this process by gradually shifting their allocation between stocks and bonds along a predetermined glide path. As the target retirement date approaches, bonds get more emphasis.

VTHRX may suit investors anticipating retirement around 2030, with its glide path automatically shifting from stocks toward bonds as the target date approaches. The fund currently holds roughly 60% in stocks and 40% in fixed income, with that mix set to become more conservative over time. VTHRX charges a low 0.08% expense ratio, pays a 2.7% 30-day SEC yield and requires a $1,000 minimum investment.

Vanguard Wellington Fund Investor Shares (VWELX)

“VWELX is a moderately aggressive fund with a higher allocation to stocks than bonds, which might be appropriate for someone that wanted to risk more price volatility in order to possibly see more potential for total return growth from their retirement fund,” says Michael Ashley Schulman, partner at Cerity Partners. Unlike Vanguard’s target date and LifeStrategy funds, VWELX is actively managed.

This balanced mutual fund dates back to 1929 and has delivered an 8.4% annualized return since inception. Its time-tested strategy invests roughly two-thirds in large-cap stocks screened for above-average dividends and lower valuations, with the remaining third primarily in investment-grade corporate bonds. VWELX charges a 0.24% expense ratio and currently pays a 2.1% 30-day SEC yield.

Vanguard Wellesley Income Fund Investor Shares (VWINX)

“VWINX is a solid balanced mutual fund that seeks sustainable income along with moderate long-term capital appreciation by investing 60% to 65% of its assets in investment-grade corporate, U.S. Treasury and government agency bonds, and approximately 35% to 40% in U.S. large-cap stocks with a value tilt,” Schulman explains. This Vanguard fund charges a 0.22% expense ratio and pays a 3.8% 30-day SEC yield.

“Overall, VWINX is a moderately conservative fund with a higher allocation to bonds than stocks, which might be appropriate for someone that wanted to see more income growth than capital growth,” Schulman says. Given its active-management turnover and bond-heavy allocation, VWINX may be best prioritized inside a Roth IRA to minimize drag from ordinary income and capital gains distributions.

[Read: 7 High-Return, Low-Risk Investments for Retirees]

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7 Best Funds for Retirement originally appeared on usnews.com

Update 08/25/26: This story was previously published at an earlier date and has been updated with new information.

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