Can You Retire Owning Just One ETF?

🕒 Reading time: 5 minutes

Hi Wealth Builders! I'm Ben — Head Coach with Steve at Call to Leap.

Tired of endlessly researching stocks and stressing about market fluctuations? What if you could simplify your investment strategy and still achieve remarkable returns?

This post reveals how investing in a single ETF, like the Schwab US Dividend ETF (SCHD) or SPDR S&P 500 ETF (SPLG), or Vanguard Total Stock Market ETF (VTI) can potentially lead to financial freedom and early retirement while you live your life and build a strong passive income stream.

💸 1️⃣ SCHD: Outperforming the Market with Dividends

Let's look at SCHD for example. Historically, the ETF has delivered impressive returns. Compounding from reinvested dividends can translate to massive gains in larger retirement accounts. With an average yearly appreciation of over 14% over the past decade, SCHD offers consistent dividends and growth.

📈 2️⃣ The Power of Compounding: Small Investments, Big Returns

Imagine investing just 10% of your paycheck into SCHD each month. Over time, compounding transforms these steady investments into a substantial nest egg. At 10, 20, 30, and 40 years from now, you could generate passive income long before traditional retirement age.

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🛡️ 3️⃣ Why SCHD? Dividends, Stability, and Low Fees

Four reasons SCHD shines:

✅ High Dividend Yield: About twice the yield of the S&P 500.
✅ Risk Mitigation: Diversification and solid fundamentals make SCHD resilient in downturns.
✅ Low Expense Ratio: At 0.06%, SCHD keeps fees from eroding your returns.
✅ Buy the Dips: Market pullbacks are opportunities to grab SCHD at a discount, boosting long-term returns.

🧐 4️⃣ SCHD: What’s Inside This ETF?

SCHD tracks the Dow Jones U.S. Dividend 100 Index, targeting fundamentally strong companies with consistent dividends. Top holdings include Merck, Pepsi, Lockheed Martin, and Home Depot, providing diversification and stability for long-term wealth building.

⚖️ 5️⃣ How to Maximize Dividend ETFs: Taxable vs. Roth IRA

You can invest through both a taxable brokerage account and a Roth IRA:

✅ Taxable Account: Get early access to dividends for passive income before retirement.
✅ Roth IRA: Enjoy tax-free growth and tax-free withdrawals in retirement.

By using both strategically, you can accelerate your path to financial independence while keeping flexibility.

Final Word:
Low-cost ETFs like SCHD, SPLG, and VTI offer a simplified, powerful way to pursue financial freedom and early retirement. With consistent dividends, market-beating returns, risk management, and low fees, it’s a compelling alternative to more complex investing approaches.

While these are some of our favorite ETFs, your investment choices are yours to make. Which ETFs are you investing in?

— Ben, for the Call to Leap Team

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Disclaimer:

The following article is strictly the opinion of the author and is not to be considered financial/investment advice. CTL Community LLC and the author of this article do not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article. Call to Leap may earn affiliate commissions from the links mentioned. Call to Leap is part of an affiliate network and receives compensation for sending traffic to partner sites such as ImpactRadius, CardRatings, MyBankTracker, and more.