Investing in dividend exchange-traded funds can be a great way to earn passive income. Wasan Tita/Shutterstock
Earning passive income is one of the most important factors in a comfortable retirement. But where do you start?
Many investors nearing retirement turn to dividend-paying exchange-traded funds (ETFs). These are professionally managed funds that invest in the stocks of hundreds or even thousands of companies, so they offer instant diversification. And a steady stream of income in the form of dividends could mean you put retirement savings on cruise control. Dividends are payments companies make to shareholders from their profits. You can think of it as a bonus in addition to what you earn from the growth of your shares.
