Introducing the Vanguard Retirement Income ETF Portfolio (VRIF)

In September 2020, Vanguard launched a new monthly income fund that has generated a lot of buzz: the Vanguard Retirement Income ETF Portfolio.

Please feel free to download the model portfolios from my blog before getting started:


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[JustinBenderCPM]

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[wcg]

Another thing I like about VRIF as an ETF, is that it's very liquid and can be sold quickly. This is more of a psychological advantage as the point is hold it forever but it doesn't feel locked in. Of course, liquidity is an aspect of other ETFs and you can sell mutual fund units pretty quickly too. However, it has the payout like an annuity without any aspect of being locked in.

[golfdreamr]

Thanks, great video! I'm wondering how VRIF compares to HPYT? It offers monthly income as well but much higher at 15% currently, which its able to do through through Covered Calls.

It is a portfolio of ETFs, which hold longer dated US Treasury bonds that are secured by the full faith and credit of the US government, employing up to 100% covered call writing to generate a higher yield and maximize monthly cash flow.

Would love to hear your thoughts and what you see as the worst case scenario or risk?

[sandrinebedard]

I just turned 23, but watched the video anyways. Proves how good it was! :)

[Daniel-efnk]

I believe the 4% will be eaten away by inflation unless you reinvest half of it (2%) every year?

[mikei]

I think this ETF is great for someone who has achieved F.I.R.E (financially independent, retired early).

[martik]

Does not seem to be too popular at only 190M market cap 6 months from inception. Vanguard discontinued the US versions

[dannychandra]

Hi, I am wondering is there any reason this is better than combination of vas and vgs. From historical records. Vas and vgs returning 10% + each year compare to this 4%. So for retirement, I dont see any point of buying this etf.

[kevinwelsh]

is this or any other retirement income fund indexed for inflation? I understand the principal would have to grow at inflation rate

[tmacfree]

Good information. How does it handle taxes is something I need to explore

[joetoronto]

Does VRIF mer .32% already include the mers of all the 8 sub etfs that make it up.. or is it .32% plus all the mers of the 8 sub etfs that make it up?

[MarkoKoskenoja]

Another sensible and well reasoned explainer video from JB👍I'm retired and drawing my my dividend payments as income from cash and 2 RIF accounts. I bought $90K so far of VRIF in my RIF accounts because I liked the make-up and approach of the fund. In addtion, I have 2 or more high dividend ETF's in my accounts to which boosts my distribution yield to 5.2% which is more than enough for me to live off of and not worry about minimum withdrawals in my accounts.

[bvsjgqg]

Why do I not find this ETF on Vanguard’s website?

[HamiltonRb]

I have tried comparing the graphs between 3 retirement income etf's ( VRIF, XTR & ZMI) but I know there is more to it than that, and hoping at some point you might discuss & rate these based on your expertise

[Siwashable]

Isn't 50% stocks a high amount for someone who is retired and drawing down? Does it not present risks highly than ideal for elderly investors? I am thinking about this product for a parent. Great video...

[bobbycoln]

Is this a good time to start a vrif to receive income from a qualified account given the Stock market is high and the bond market stinks. I need a safe place to get income.

[DenisZenASMR]

Tbh this is one of my favourite ETFs. They did a great job with this

[missionbear]

Justin, Thank you for the detailed explanation. I am wondering that what is the withholding tax for VRIF if we hold it in the non-registered account?

[Amelia-Elizabeth]

I watch several YouTube videos on how to trade in the stock market but haven't made any head start because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands

[DanielTojcic]

Would you recommend a 50/50 split of VRIF and XEI for a retiree looking to boost their yield in a TFSA account?

It would be nice to see your analysis of products like ZWC, or some REITs