3 ASX ETFs you might not know pay dividends

It only takes a little bit of investing knowledge and common sense to know if some ASX exchange-traded funds (ETFs) pay out dividend distribution.

For example, it would be a pretty safe bet that the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) are dividend payers by virtue of their names alone.

And most investors know that many, if not most, ASX shares are dividend payers, so it would also be a relatively safe assumption that an ASX-based index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) would also dole out periodic income to its investors.

But let’s talk about some ASX ETFs that might not be such prominent dividend payers but still give their investors plenty of income.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This ETF from BetaShares is an index fund that tracks America’s NASDAQ-100 Index (NASDAQ: NDX). This index comprises the 100 largest companies that list on the NASDAQ exchange, excluding financial shares. The NASDAQ is known for housing most of the US tech shares. So you’ll find the likes of Apple, Alphabet, Tesla and Amazon dominating this ETF.

Many US tech shares, including Apple and Microsoft, pay dividends. As such, so too does this ETF. Over the past 12 months, this ETF has given its unit holders a total of $2.04 per unit of dividend distribution income. That gives this ETF an impressive trailing yield of 7.7%.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF from provider BetaShares, this one covers a specific sector in cybersecurity. Its portfolio is dominated by US shares. But there are companies from Israel, India, France and Japan in there too. Some of the fund’s top holdings include Okta, Broadcom, Fortinet and Cisco Systems.

Just like with our last ETF, this fund also houses dividend payers, which include Cisco and Broadcom. Its last dividend distribution came to 68 cents per unit, which gives this fund a trailing yield of 8.74% on current prices.

Global X FANG+ ETF (ASX: FANG)

Last but not least, we have another tech-focused ETF from provider Global X. This ETF is a relatively concentrated one, holding just 10 shares in its portfolio. These include the FANG stocks that give the fund its name: Meta Platforms (formerly Facebook), Apple, Amazon, Netflix and Alphabet (owner of Google).

But you’ll also get Snowflake, Microsoft, Tesla, NVIDIA and AMD (the ‘+’). This ETF’s last distribution was the 68.64 cents per share payment from July last year. That gives the Global X FANG+ ETF a trailing yield of 5.58% on current pricing.

The post 3 ASX ETFs you might not know pay dividends appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Tesla and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon.com, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Nvidia, 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.

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