ASX-listed exchange-traded funds (ETFs) can be a great tool for Aussies to utilise for international diversification beyond ASX shares. Another benefit is the income that ETFs can provide.

Some of the ASX's biggest companies are known as ASX dividend shares, including BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and ANZ Group Holdings Ltd (ASX: ANZ).

However, a strong rally of ASX bank shares in 2024 has lowered the overall dividend yield. At the end of November 2024, the dividend yield of the Vanguard Australian Shares Index ETF (ASX: VAS) — a fund that tracks the S&P/ASX 300 Index (ASX: XKO) — was 3.4%.

There are other share markets out there that can also be good income options. Let's look at two geographic-based ASX ETFs that offer comparable and pleasing dividend income.

Betashares FTSE 100 ETF (ASX: F100)

The purpose of this ASX ETF is to provide exposure to a portfolio of 100 blue-chip companies on the London Stock Exchange.

I'd describe a good number of these businesses as global companies, such as Astrazeneca, Shell, HSBC, Unilever, Relx, BP, British American Tobacco and Diageo. While they are listed in London, they generate earnings from across the world.

One of the interesting things about the F100 ETF is that it trades on a pleasingly low price/earnings (P/E) ratio, enabling a good dividend yield. According to BetaShares, the F100 ETF had a forward P/E ratio of 11.5x at the end of November 2024, compared to 21.8x for the VAS ETF.

According to BetaShares, the 12-month distribution yield from the F100 ETF was 3.5% at the end of November 2024.

Betashares India Quality ETF (ASX: IIND)

I believe getting exposure to the Indian economy could be a smart move for the foreseeable future.

The Australian Treasury projects that the Indian economy will see an average annual growth rate of 6% over the next two decades thanks to improving productivity.

Not every Indian business is going to be high-quality, just like on the ASX or any other share market. So, this fund is focused on owning just the high-quality Indian companies.  

Companies must rank well on three factors to make it into the portfolio: high profitability, low leverage, and high earnings stability. When you put those factors together, it's not surprising to me that the IIND ETF has returned an average of 10.1% per year since August 2019 – a solid return.

According to BetaShares, this fund's forward P/E ratio was 24x as of 29 November 2024, reflecting the expected growth potential of holdings like Infosys, Tata Consultancy Services, and Hindustan Unilever.

Despite the higher earnings valuation, this ASX ETF still offered a 12-month distribution yield of 3.4% at 29 November 2024.