Investing in individual companies isn't for everyone; those looking to simplify their portfolios should consider exchange-traded funds (ETFs). Simply put, ETFs are a group of securities like stocks or bonds that trade under a single ticker symbol. Just like you can buy stocks in different types of companies, you can buy a variety of ETFs to build a diversified portfolio.

This is especially useful to retirees, who don't necessarily want to get too risky with their investing strategy or spend all of their time combing through stocks. Here are five great ETFs for retirees and conservative investors.

The S&P 500, which contains 500 of the biggest and best corporations in America, is the widely accepted benchmark for the stock market. So an ETF like the Vanguard 500 ETF (NYSEMKT: VOO) is a great starting point for any portfolio. It's constructed to mimic the S&P 500 and carries a minimal expense ratio of 0.03%. In other words, owning the stock will cost just $0.30 annually for every $1,000 you invest.

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Source Fool.com