Buy these ASX ETFs for a second income

The great thing about exchange-traded funds (ETFs) is that they cater to all investment groups.

It doesn’t matter whether you’re a growth investor or an income investor, there will be an ETF out there for you.

With that in mind, let’s now take a look at two ASX ETFs that could be quality options for income investors. They are as follows:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

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

This fund gives you exposure to a portfolio filled with many of the biggest payers on the Australian share market.

The good news is that it has been built with diversity in mind. In order to stop you from owning purely banks and miners, Vanguard limits how much it invests in any particular industry or company.

Among its ~70 holdings are BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), Commonwealth Bank of Australia (ASX: CBA), Fortescue Ltd (ASX: FMG), Transurban Group (ASX: TCL), and Wesfarmers Ltd (ASX: WES).

The ASX ETF currently trades with a dividend yield of 5.1%. Based on this yield, a $10,000 investment would generate $510 of income.

Vanguard Australian Shares Index ETF (ASX: VAS)

Another ASX ETF for income investors to consider buying is the popular Vanguard Australian Shares Index ETF.

It is a low-cost index-based exchange traded fund that aims to track the ASX 300 index. This means that you will be buying a slice of Australia’s leading 300 listed companies.

Among this very diverse group of shares are dividend payers such as Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), Origin Energy Ltd (ASX: ORG), and Woodside Energy Group Ltd (ASX: WDS).

At present, it trades with a dividend yield of 3.9%. This means that a $10,000 investment would yield second income of $390.

The post Buy these ASX ETFs for a second 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

• How much would I have now if I’d invested $10,000 in Vanguard Australian Shares Index ETF (VAS) a year ago?
• With a spare $500, here’s how I’d start buying ASX shares this March
• 5 ASX shares to buy for an effortless path to financial freedom
• Buy these ASX ETFs for easy passive income
• 3 reasons to buy another ASX ETF over the Vanguard Australian Shares Index ETF (VAS)

Motley Fool contributor James Mickleboro has positions in Lovisa and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has recommended Lovisa and 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/HdS5ntF