Some retirees want more income, even if it means sacrificing capital appreciation and, perhaps more importantly to income-oriented investors, dividend appreciation. Key Points The VYM and VIG are wonderful ETFs for retired investors seeking dividend income. Vanguard Dividend Appreciation Index Fund ETFThe Vanguard Dividend Appreciation Index Fund ETF (NYSEARCA:VIG) is an even better performer than the VYM, and it’s probably my favorite Vanguard ETF, period. As inflation rises, however, more dividend growth remains a significant perk, enabling investors to spend more or reinvest the excess. If it’s in the mid-2% range, the VYM fits the bill, offering a decent amount of dividend growth and value.