The Australian share market is a great place to generate passive income.

But if you don't like picking stocks, it can be intimating.

Never fear! There are exchange-traded funds (ETFs) out there to make life easier for you.

They allow investors to buy large groups of shares through a single investment. This means you can diversify a portfolio with ease.

But which ASX ETFs could be good picks for passive income investors? Let's take a look at three top options:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF could be a good option for income investors.

This fund uses broker research to group together in the region of 70 ASX shares from all corners of the market that are forecast to have bigger than average dividend yields.

Among its holdings are the popular ASX dividend shares BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Transurban Group (ASX: TCL).

The Vanguard Australian Shares High Yield ETF currently trades with a dividend yield of 4.8%.

Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

Another ASX ETF that could be used for passive income generation is the Betashares Australian Top 20 Equity Yield Maximiser Fund.

This fund aims to generate attractive quarterly income and reduce the volatility of portfolio returns through something called a covered call strategy. This strategy is held over a portfolio of the 20 largest blue-chip shares listed on the Australian share market.

The fund manager, Betashares, has recommended the ETF as a top option to counter falling dividend yields. It notes that the covered call strategy "performs well in a neutral or gradually rising market, allowing call options to generate income without stocks being called away too often, as has been seen in recent months."

At present, it trades with a trailing 12-month dividend yield of 7%.

Betashares Australian Cash Plus Fund (ASX: MMKT)

Finally, the Betashares Australian Cash Plus Fund could be a great option for passive income in 2025.

The ASX ETF was tipped as a buy by analysts at Betashares. The fund manager believes that it would be a good pick for investors seeking an enhanced yield from their core cash allocation.

It notes that "MMKT provides monthly income to investors by offering diversified exposure to not only Australian bank deposits, but also a range of more sophisticated money market securities usually only available to institutional investors."

At present, the fund trades with a trailing annual dividend yield of 4.8%, which is paid out every month. Betashares believes this provides regular income and a high degree of capital stability.