By Jake Lerch

KEY POINTS

• Income-seeking investors should diversify their portfolios, and ETFs offer an easy way to do just that.
• The Vanguard High Dividend Yield Index Fund offers a 3.1% dividend yield and a 0.06% expense ratio.
• Real estate ETFs, like the Vanguard Real Estate Index Fund, can generate impressive amounts of income for investors.

Let's have a go at finding three Vanguard ETFs that can produce income for a lifetime.

We all know investing is hard. Building a nest egg of $1 million or more can take a lifetime.

But let's say you do it. You have $1 million (or more) and the time has come to switch from a growth mindset to an income mindset. How could you generate $4,000 per month in dividend income alone? Is it even possible?

Of course. You just need to know where to look. So, here's a few ways to do it using Vanguard exchange traded funds (ETFs).

Vanguard High Dividend Yield Index Fund

First up is the Vanguard High Dividend Yield Index Fund ( $High Dividend Yield Indx ETF Vanguard VYM$ ). This ETF has a nearly 20-year history and has performed well over that time. It boasts a lifetime 8% total return compound annual growth rate (CAGR). Moreover, its 3.1% dividend yield and 0.06% expense ratio give value-oriented investors plenty to smile about.

DATA SOURCE: VANGUARD.

Top sectors include financial services (22% of total holdings), industrials (12%), and technology (11%).

Investing $500,000 in this fund would yield $15,500 in annual dividend income, or $1,292 per month.

Vanguard Real Estate Index Fund

Next is the Vanguard Real Estate Index Fund ( $Vanguard Reit ETF - Dnq VNQ$ ). This real estate-focused ETF has a history dating back to 2005. Its 7.4% CAGR over the last 19 years is solid, and its 4.2% dividend yield isn't too shabby either.

The fund's holdings are almost entirely within the real estate sector, with 99.1% of assets invested in the industry.

DATA SOURCE: VANGUARD.

Investing $500,000 in this ETF would generate $21,000 in annual dividend income, or $1,750 per month.

Vanguard International High Dividend Yield Fund

Last is the Vanguard International High Dividend Yield Fund ( $Vanguard International High VYMI$ ). This ETF focuses on non-American stocks with high dividend yields. Started in 2016, it has a shorter track record than the other ETFs noted here, but it does boast a solid 7.5% CAGR over its lifetime. Add to that a beefy 4.7% dividend yield and a below-average 0.22% expense ratio, and this ETF is one to consider for income-seeking investors.

The ETF's top sectors are financial services (36%), energy (10%), and industrials (10%).

Investing $500,000 in this ETF should generate $23,250 in annual dividend income, or $1,938 per month.

Income-seeking investors would be wise to consider these Vanguard ETFs. Even for those with more modest sums to invest, these funds can generate much-needed portfolio income.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Jake Lerch has positions in Novartis Ag and Procter & Gamble. The Motley Fool has positions in and recommends American Tower, Crown Castle, Equinix, JPMorgan Chase, Prologis, Vanguard Specialized Funds - Vanguard Real Estate ETF, and Vanguard Whitehall Funds - Vanguard High Dividend Yield ETF. The Motley Fool recommends Broadcom, Johnson & Johnson, and Roche Ag and recommends the following options: long January 2026 $180 calls on American Tower and short January 2026 $185 calls on American Tower. The Motley Fool has a disclosure policy.