Why these ASX ETFs could be great for passive income in 2025

MotleyFool
01-21

If you are wanting to generate passive income from the share market but don't like stock picking, then exchange-traded funds (ETFs) could be the solution.

They allow you to buy groups of dividend payers with a single click of the button. This removes the need to pick individual stocks and can reduce portfolio risk.

But which ASX ETFs could be good picks for income investors? Let's take a look at three that could be worth considering this year:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A popular option for income investors is the Vanguard Australian Shares High Yield ETF.

It leverages broker research to pull together in the region of 70 ASX shares that are forecast to have larger than average dividend yields. But this doesn't mean that you just end up with miners and banks. The fund operates with diversity in mind and is filled with companies from all corners of the market.

This includes the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Transurban Group (ASX: TCL).

At the last count, the Vanguard Australian Shares High Yield ETF was trading with a dividend yield of 5.2%.

Betashares Australian Cash Plus Fund (ASX: MMKT)

A very different option for income investors to consider is the Betashares Australian Cash Plus Fund.

Betashares believes this ASX ETF could be a good pick for investors that are seeking an enhanced yield from their core cash allocation.

The fund manager 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."

The fund currently trades with a trailing dividend yield of 4.9%.

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

A third ASX ETF for income investors to consider buying for passive income is the BetaShares S&P 500 Yield Maximiser.

This fund has been designed to generate as much income as possible from the top 500 companies listed on Wall Street through a covered call strategy. This includes giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walmart (NYSE: WMT).

This strategy means the fund has been able to provide investors with significantly better dividend yields than you would get by just investing in the 500 companies individually.

For example, its units were last trading with a 12-month trailing 4.1% distribution yield.

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10