One of the most popular exchange traded funds (ETFs) on the Australian share market is the Vanguard Australian Shares Index ETF (ASX: VAS).
This ETF aims to track the return of the S&P/ASX 300 Index before taking into account fees, expenses, and tax.
This means that when you buy this ETF, you will be buying a slice of a diverse group of ASX shares including giants like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woolworths Group Ltd (ASX: WOW), as well as smaller names such as Dicker Data Ltd (ASX: DDR) and Myer Holdings Ltd (ASX: MYR).
Earning income from the Vanguard Australian Shares Index ETF
The Australian share market is one of the more generous markets, with a high proportion of companies sharing their profits with investors.
The good news is that there are plenty of dividend payers in the Vanguard Australian Shares Index ETF, which explains why it is a popular option for income investors.
In fact, according to Vanguard, at present the ETF provides investors with a 4.4% dividend yield.
This means it would be possible for investors to generate a monthly income of $300 per month from its units.
The only issue, though, is that it pays its dividends in quarterly instalments. So, investors would have to be disciplined and distribute their dividends evenly each month.
With that in mind, if you wanted to generate $300 of passive income from the Vanguard Australian Shares Index ETF, you would need to receive total dividends of $3,600 a year.
Based on its current yield, investors would need to own approximately $82,000 worth of units. This equates to 937 units at current prices.
The post How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF appeared first on The Motley Fool Australia.
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More reading
- 3 reasons the Vanguard Australian Shares Index ETF (VAS) could be worth buying today
- Hereâs how I would secure monthly dividends in the 2024 financial year with these ASX stocks
- Does the Vanguard Australian Shares Index ETF (VAS) hold the ticket to building long-term wealth?
- Top ASX ETFs to buy in March 2023
- Dividend dessert: Which ASX ETFs are the sweetest for a passive 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 no position in any of the stocks mentioned. 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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