2 High-Yielding ETFs That Can Bankroll Your Retirement for Years

Investing in the stock market today can be worrisome given how high valuations have become of late. That can add risk to your portfolio, and potentially make you vulnerable in the event of a correction -- or worse, a full-blown crash.

If you're in retirement and just want some steady, dependable income, the good news is that there are many reliable exchange-traded funds (ETFs) that can keep your risk low while providing solid returns. While the S&P 500 averages a yield of only 1.2%, there are ETFs that can give you much more in dividend income.

A couple of solid, dividend-focused ETFs you may want to consider today are the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) and the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). Here's why these funds can be excellent options for your portfolio if your priority is dividend income.

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Vanguard International High Dividend Yield ETF

The Vanguard International High Dividend Yield ETF pays a fairly high yield of around 4%, which is easily more than three times the S&P 500 average. Meanwhile, it charges a low expense ratio of 0.17%.

This can be an attractive income investment if you're worried about the U.S. economy because it focuses on other markets. European stocks account for 43% of the ETF's holdings, followed by the Pacific region at 26%, and emerging markets make up another 22%. Overall, there are more than 1,500 stocks in this fund.

Another great feature about this ETF is how modest its holdings are -- no stock accounts for more than 2% of the overall portfolio. HSBC Holdings, Nestlé, and Novartis are currently its top three stocks, but together, they make up just 4.5% of the ETF's total holdings. That's great from a risk standpoint since it ensures that you aren't dependent on how just a few stocks perform, which is a big risk with many tech-heavy ETFs these days.

The Vanguard fund has also averaged a beta of 0.92 over the past five years, which indicates that it is less volatile than the overall stock market. That doesn't mean that it won't struggle in a downturn, but it can be less volatile overall, which can be key if you just want to focus on dividend income.

Schwab U.S. Dividend Equity ETF

This is another top dividend ETF. As its name suggests, it focuses on U.S. dividend stocks. Together with the Vanguard fund, you can have a portfolio that encompasses both U.S. and international markets with just two investments.

The Schwab fund is much smaller in scope, with around 100 stocks in its portfolio. That can be a good thing with dividend stocks because it suggests a more carefully selected portfolio. The ETF's focus is on keeping costs low while targeting stocks that have strong financials and can sustain their dividend payments; it's not simply a huge collection of dividend-paying investments.

In this ETF, you'll find some top names when it comes to dividends, including Coca-Cola, AbbVie, and Cisco Systems. Those are among its top holdings. While there is a bit more exposure to individual stocks with this ETF, given its focus on quality dividend stocks, that doesn't take away from the overall safety with this fund.

The Schwab ETF yields 3.8%, and its expense ratio of 0.06% is incredibly light. Meanwhile, its beta of 0.79 suggests it's an even less volatile investment than the Vanguard fund.

Although the ETF is down 1% this year, it has generated returns of around 30% in five years, and that's without including its dividend. Overall, it's a solid option for the long haul that can generate recurring income for the foreseeable future.

HSBC Holdings is an advertising partner of Motley Fool Money. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Cisco Systems. The Motley Fool recommends HSBC Holdings and Nestlé. The Motley Fool has a disclosure policy.