Pros and Cons of Dividend ETFs for Retirees

Dividend ETFs can provide steady income—but investors should watch for hidden risks.

Dividend ETFs can support retirement income, but require careful evaluation. Sutthiphong Chandaeng/Shutterstock

Dividend exchange-traded funds (ETFs) have become quite the buzzword in finance, especially when it comes to retirees. And for some good reasons.

Dividend ETFs are designed to provide a reliable stream of income plus capital appreciation. But not all dividend ETFs are created equal, and they may have some faults that can do little to benefit your portfolio.