Exchange traded funds (ETFs) don’t just provide investors with access to indices, countries, or sectors. They also allow investors to achieve different investment goals.
For example, if you’re wanting to build an income portfolio, you could buy the ETFs named below that have been designed to provide investors with exposure to a collection of dividend shares.
Here’s what you need to know about them:
BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The first ETF for income investors to look at is the BetaShares S&P 500 Yield Maximiser.
This ETF has been designed to provide income investors with attractive quarterly income and low volatility.
BetaShares aims to do this via an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index on Wall Street. This clever strategy allows the ETF to generate a greater than average yield from the constituents of the index.
In fact, at the last count, the BetaShares S&P 500 Yield Maximiserâs units were offering investors an 8.7% distribution yield.
Among the shares listed on the S&P 500 index are dividend-paying giants such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.
Vanguard Australian Shares High Yield ETFÂ (ASX: VHY)
If you’re wanting to invest locally then income investors might want to look at the Vanguard Australian Shares High Yield ETF.
This ETF focuses on investing in a collection of ASX shares that have higher forecast dividends relative to the rest of the market.
And it does this with diversification in mind. The Vanguard Australian Shares High Yield ETF restricts the proportion invested in any one industry to 40% and 10% for any one company.
At the last count, there were 70 ASX shares included in the portfolio. These include giants such as Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC).
The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.4%.
The post Here are the ASX ETFs to buy for a passive income boost in 2023 appeared first on The Motley Fool Australia.
Scott Phillips’ ETF picks for building long term wealth…
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He’s painstakingly sorted through hundreds of options and uncovered the small handful he thinks are balanced and diversified. ETFs he thinks investors could aim to hold for years, and potentially build outstanding long term wealth.
Click here to get all the details
*Returns as of December 1 2022
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More reading
- 2 excellent ETFs for ASX investors in January
- 2 of the best ETFs for ASX investors to own in 2023
- The ASX-listed ETFs to buy for a passive income in 2023
- How Iâd build passive income with just $20 a week
Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&p 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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