If you’re looking for a passive income then exchange traded funds (ETFs) could be used to achieve this goal.

For example, the two ASX-listed ETFs named below could be top candidates as they have been designed to provide investors with above-average dividend yields.

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.

It aims to provide income investors with attractive quarterly income and low volatility via an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index on Wall Street.

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.

However, true to its name, this clever strategy allows the ETF to maximise the yields on offer with the stocks to create a yield that is greater than you would normally receive from the index.

For example, at present, the BetaShares S&P 500 Yield Maximiser’s units were offering investors a 7.9% distribution yield.

Based on the above, a $100,000 investment in this ETF would generate $7,900 of passive income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ETF that could give you a passive income boost is the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with exposure to a diverse group of ASX shares that have higher forecast dividend yields relative to the rest of the market.

At present there are 74 ASX shares included in the portfolio. These include giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.6%.

This means that a $100,000 investment could generate $5,600 of passive income for investors.

The post These ETFs could give ASX investors a passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy these ETFs for passive income and growth
• Is the Vanguard Australian Shares High Yield ETF (VHY) a good buy for passive income?
• Growth and income: 2 excellent ETFs for ASX investors to buy this month
• Buy these ASX ETFs for retirement income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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&P500 Yield Maximiser, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/fv32z0U

• Stock Market