The Medicare Supplement You Need Just Got Up to 26% More Expensive. These 3 ETFs Pay the Difference

The costs of Medigap insurance policies are set to increase significantly, up to 26%, leaving retirees to cover the additional expenses themselves. This is due to a lower than expected Social Security cost-of-living adjustment (COLA) at just 3.1% for 2027. To cope with this financial burden, retirees may consider investing in three specific ETFs: Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), iShares Core Dividend Growth ETF (DGRO), and WisdomTree Floating Rate Treasury Fund (USFR).

SPHD provides a monthly yield of 4.5%, while DGRO has grown its annual dividend by 10% over two years. USFR, meanwhile, holds floating-rate Treasuries that reset with short-term rates, offering a steady income with minimal price fluctuation. These ETFs cater to the needs of retirees facing rising Medigap costs by offering different financial solutions: SPHD pays monthly dividends to cover immediate premium hikes, DGRO helps maintain income growth, and USFR provides stable returns with a minimal exposure to market risks.