We live in a world where investors want instant reaction and, sometimes, hot takes after a company reports earnings. However, as FedEx shows, it’s often prudent to let an earnings report sit for a few days. That’s particularly true of a company that is more than tangentially impacted by geopolitical events as well as a headline-driven U.S. economy.  

For example, on Feb. 18, the day before FedEx reported, FDX stock dropped nearly 3% in the afternoon after remarks from Federal Reserve chair Jerome Powell. Not only did the Fed not lower interest rates, but Powell also said the Fed hasn’t ruled out a rate increase. But after the company’s earnings report, FDX stock climbed approximately 4.5% before pulling back, ending the week in sympathy with a broader sell-off in stocks.  

That means as a new trading week starts, FedEx is pretty much back where it started. But where does it go from here? 

Network 2.0 is Progressing 

Interestingly, the idea of where FedEx stock will go from here is based on the company’s progress in efficiently moving packages. At the core of that answer is the company’s Network 2.0 initiative. This is an overhaul of the company’s Ground and Express Networks with the goal of strengthening the company’s competitive position by:  

• Improving pickup and delivery processes 
• Trimming costs 

Network 2.0 is part of FedEx’s broader DRIVE transformation — a multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada. 

Make no mistake; this is a cost-cutting initiative, but one that’s working. In the company’s fiscal third quarter, it announced that 35% of eligible volume is now routed through approximately 400 Network 2.0 facilities. The company expects over $2 billion in cumulative savings by the end of 2027.  

Revenue Growth Is Coming from the Right Places  

One of the most encouraging elements of FedEx’s Q3 FY26 report was not just that revenue grew, but where that growth came from. Total consolidated revenue reached $24 billion, up 8% year-over-year, but the composition of that growth tells a more interesting story. 

The Federal Express (FEC) segment drove the headline number, posting revenue of $21.2 billion, a 10% increase from the same quarter a year ago. Critically, nearly half of FEC’s revenue growth was driven by B2B services — the same trend seen in the prior quarter — signaling that FedEx is successfully moving up the value chain. 

The company is deliberately targeting high-margin verticals, including healthcare, automotive, data centers, and aerospace. These are part of the company’s deliberate commercial strategy to pursue customers whose shipping needs are complex, time-sensitive, and less price-elastic than standard consumer deliveries. FedEx is also deepening its expertise in healthcare logistics and pharmaceutical distribution, where quality governance and regulatory compliance create real barriers to entry for competitors. 

On the B2C side, FedEx recently launched FedEx Returns+, an AI-powered digital tracking and returns product designed to improve visibility and communication between shippers and end customers. Early U.S. market reaction has been positive, with a planned European rollout in April. This matters because sticky, tech-enabled customer relationships make it harder for shippers to defect to lower-cost alternatives. The combination of high-margin B2B momentum and differentiated B2C tools gives investors a credible path to sustained, quality revenue growth. 

What the Chart Is Telling Us 

The FDX daily chart reflects a stock that has had a strong run but is now navigating a period of consolidation near a technically significant level. After trading mostly sideways through the spring and summer of last year, shares broke out meaningfully in the fall, ultimately reaching highs near the $390 range. That move higher was accompanied by expanding volume and a rising 50-day simple moving average (SMA), both hallmarks of a healthy trending advance. 

Currently, FDX is trading around $358, sitting just above its 50-day SMA of $350. The 50-day SMA is a widely watched level for institutional investors, and the fact that the stock is holding above it, even after pulling back from recent highs, is a modestly constructive sign. However, the MACD tells a more cautious story. The MACD line sits at -3.35, while the signal line is at -0.88, suggesting that near-term momentum has weakened. The histogram, which recently showed a sharp negative spike on elevated volume, points to selling pressure that has not yet fully resolved. 

The most recent volume bar is notably elevated compared to recent sessions, indicating the pullback has attracted attention. Whether that represents capitulation or the beginning of a deeper correction remains to be seen.

For investors watching FDX technically, the 50-day SMA near $350 is the line in the sand. A sustained close below that level would be a yellow flag. Conversely, a move back above $370 on strong volume would suggest the bulls have regained control, and the consolidation phase is ending. 

How the FDX Stock Rally Can Run Out of Energy 

Simply put, rising oil prices are the biggest near-term threat to FedEx. It’s actually a triple threat without many easy solutions. 

A weak consumer is an obvious threat. Consumers have been remarkably resilient despite sticky inflation and interest rates that remain high, when compared to the extended period of near-zero rates that preceded it. However, there are already reports that higher gas prices could effectively erase any tax return benefits Americans get this season. That means higher fuel prices could fuel a goods recession.  

Second, FedEx also faces higher fuel costs. That puts the company in a tricky situation. If they eat the costs, it will come at the expense of earnings. But if they pass the cost along, they risk adding to the burden on consumers. 

The third threat is that if the conflict with Iran becomes protracted, it’s likely to trigger a broader economic slowdown. That means FedEx will see a slowdown from business customers, while consumers feel the pinch of higher fuel prices.  

Investors also shouldn’t dismiss the threat from competition. This goes beyond United Parcel Service (NYSE: UPS) and now includes Amazon (NASDAQ: AMZN), which continues to expand its fleet and could take market share.  

The Bottom Line on FDX 

FedEx is a company in the middle of a genuine transformation, and Q3 FY26 showed that the transformation is producing real results. Network 2.0 is ahead of schedule, margins are expanding at the FEC segment for the sixth straight quarter, and management raised full-year guidance — all against a backdrop of global trade uncertainty and soft LTL demand. 

The stock’s near-term path will depend heavily on macro factors outside FedEx’s control, particularly oil prices and consumer resilience. But for investors with a 12-to-18-month horizon, the risk/reward looks reasonable at current levels, particularly with the 50-day SMA offering a clear technical reference point. Watch the $350 level. If it holds, FDX remains a credible story. 

There are many safe ETFs to choose from. So many, in fact, that it can create analysis paralysis. Don’t let that happen to you. Here are three of the top ETFs to own if stable growth with a reliable yield is your first priority.

Safe ETFs to Buy: The Vanguard S&P 500 ETF

“Over the years, I’ve often been asked for investment advice,” Buffett wrote in a 2016 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.”

With that, Buffett has named the Vanguard S&P 500 ETF (NYSEARCA: VOO) as one way to invest. What makes the VOO ETF the most attractive is that it measures the performance of the S&P 500 and includes both value stocks and growth stocks from multiple market sectors. In fact, its holdings include some of the most widely held stocks, including Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Berkshire Hathaway (NYSE: BRK.B).

It offers a low-cost way to safely diversify by tracking the largest companies, making it an ideal set-it-and-forget-it trade. In addition, with an expense ratio of 0.03%, the ETF also pays a quarterly yield. On December 24, it paid a dividend of just over $1.771. Before that, it paid a dividend of $1.74 on October 1. Before that, it paid a dividend of just over $1.7447 on July 2.

Safe ETFs to Buy: The VanEck Morningstar Wide Moat ETF

If you follow Warren Buffett, you know he likes companies with a wide economic moat. In fact, if you want to invest in companies attractive to the billionaire, make sure they are:

• Simple companies that are easy to understand
• Companies with predictable and proven earnings
• Companies that can be bought at a reasonable price
• Companies with “economic moat,” or a unique advantage over their competition.

With an expense ratio of 0.47%, the VanEck Morningstar Wide Moat ETF (BATS: MOAT) tracks the performance of companies with sustainable competitive advantages. That includes Estee Lauder (NYSE: EL), Teradyne (NASDAQ: TER), Boeing (NYSE: BA), Alphabet, Nike (NYSE: NKE), and NXP Semiconductors (NASDAQ: NXPI). 

The MOAT ETF also yields 1.29% and pays a yearly dividend. On December 24, it paid out a dividend of $1.2675. On December 22, 2023, it paid out a dividend of $0.7285.

Safe ETFs to Buy: The Schwab US Dividend Equity ETF

There’s also the Schwab US Dividend Equity ETF (NYSEARCA: SCHD), which tracks the performance of 100 high-yielding dividend stocks chosen by yield and five-year dividend growth rates.

With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend Index. It also yields 3.37%, which is about three times the S&P 500’s dividend yield, and has holdings in names such as: Amgen (NASDAQ: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ; CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).  Its last dividend of just over 27 cents was paid on December 15. Before that, it paid just over 26 cents on September 29. 

Control What You Can Control

While geopolitical tensions and market volatility may keep investors on edge, the key to long-term success is staying invested in high-quality assets. ETFs like the Vanguard S&P 500 ETF, VanEck Morningstar Wide Moat ETF, and Schwab US Dividend Equity ETF provide diversification, strong underlying companies, and reliable income streams—all qualities that can help weather uncertain markets. 

Instead of trying to time every headline, investors can focus on disciplined, long-term strategies using funds like these to build resilience and stability in their portfolios.

After spending years building up your nest egg, you want to step into the retirement you deserve — whether that means relocating to a dream destination, traveling more, spending more time with family, or simply enjoying the comfort of your finances.

What you don’t want is constant stress about market swings, inflation quietly eroding your purchasing power, or the fear of outliving your savings. Retirement should be about freedom and confidence, not anxiety.

One of the most effective ways to build that confidence is by owning income-focused ETFs that deliver consistent cash flow, diversification, and professional management. Instead of relying solely on selling shares to fund your lifestyle, these funds aim to turn your portfolio into a dependable income engine.

Below are five retirement income ETFs that can help provide a reliable “paycheck” in retirement, along with why each can play an important role in a long-term income strategy.

Retirement Income ETFs: Schwab US Dividend Equity ETF (SCHD)

Retirees looking for a low-cost dividend ETF that invests in quality companies can look into the Schwab US Dividend Equity ETF (NYSEARCA: SCHD). This ETF screens for high-yielding companies that have a track record of paying dividends. 

The ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. It has 100 holdings, including names such as Amgen (NASDAQ: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).  

The fund has an expense ratio of 0.06% and pays a quarterly dividend that yields 3.38%.

Retirement Income ETFs: Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) seeks steady income by investing in high-quality companies that pay high dividends and experience low volatility, helping steer investors clear of value traps and mitigate risk.

The fund offers a yield of about 4%. This means a $400,000 investment could pay $1,333 a month with that yield. Its holdings are mainly in real estate and in defensive sectors such as consumer staples and utilities.

Retirement Income ETFs: JPMorgan Equity Premium Income ETF (JEPI)

The JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI) generates income by combining some of the top blue-chip stocks, such as Amazon (NASDAQ: AMZN), Mastercard (NYSE: MA), and Nvidia (NASDAQ: NVDA), using options strategies.

All of which help produce hefty monthly income for investors. In fact, last checked, the JEPI ETF yields about 7.24%, which isn’t too shabby at all. With an expense ratio of 0.35%, the ETF holds 122 stocks, including Visa (NYSE: V), Mastercard, Trane Technologies (NYSE: TT), Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL), The Southern Company (NYSE: SO), and Nvidia.

Retirement Income ETFs: JPMorgan Nasdaq Equity Premium Equity Income ETF (JEPQ)

The JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ: JEPQ) generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation. 

The ETF has an expense ratio of 0.35% at the time of this writing, and pays a monthly dividend with a yield of 9.74%,

Retirement Income ETFs: iShares Core High Dividend ETF (HDV)

The iShares Core High Dividend ETF (NYSEARCA: HDV) tracks the investment results of an index composed of relatively high-dividend-paying U.S. equities. Some of its top holdings include Exxon Mobil (NYSE: XOM), Chevron, and Johnson & Johnson (NYSE: JNJ).

With a yield of 3.41% and an expense ratio of 0.08%,

It’s About Peace of Mind

Retirement isn’t about chasing the highest returns or trying to beat the market. It’s about peace of mind. It’s about knowing your bills are covered, your lifestyle is supported, and your money is working quietly in the background so you can focus on living.

The right mix of retirement income ETFs can help turn decades of hard work into dependable cash flow — month after month, year after year. While no investment is risk-free, building a diversified portfolio centered on quality, income, and consistency can go a long way toward making retirement feel less uncertain and more secure. In the end, the goal isn’t just to retire — it’s to retire confidently, knowing your portfolio is built to support the life you’ve earned.