If you are lucky enough to have $20,000 to invest in the share market, then it could be a good idea to consider some exchange traded funds (ETFs).

But which ones could be worth a closer look? Let’s dig deeper into three ASX ETFs that could be top picks. Here’s what they offer:

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider is the iShares S&P 500 ETF.

This fund tracks the famous S&P 500 Index, which includes 500 of the largest listed companies in the United States.

That gives investors access to some of the world’s most successful businesses across technology, healthcare, financial services, consumer products, industrials, and other industries.

Among its holdings are the likes of Nvidia (NASDAQ: NVDA), Walmart (NASDAQ: WMT), McDonald’s (NYSE: MCD), and Apple (NASDAQ: AAPL).

This could make it a great way to invest across the US market.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that could be worth a closer look is the Betashares Global Quality Leaders ETF.

This fund invests in global companies that demonstrate strong quality characteristics.

That includes businesses with high profitability, healthy balance sheets, and relatively stable earnings.

This could be a sensible approach to long-term investing, particularly in the current environment.

Companies with strong financial positions can often keep investing for growth during difficult economic conditions. They may also be better placed to take advantage of opportunities when weaker competitors are struggling.

The Betashares Global Quality Leaders ETF offers exposure to a portfolio of companies selected for these characteristics across developed markets.

It was recently recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A final ASX ETF to consider for the $20,000 is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow.

Free cash flow is the money a business has left after paying its operating expenses and capital expenditure.

It can be an important indicator of financial strength. Companies generating significant free cash flow have more flexibility to invest in growth, pay dividends, buy back shares, reduce debt, or make acquisitions.

That can be particularly valuable during periods when economic conditions are challenging.

For investors looking to build wealth over the next decade, it could be an attractive way to back companies with strong underlying financial characteristics. It was also recently recommended by analysts at Betashares.

The post Where to invest $20,000 in ASX ETFs today appeared first on The Motley Fool Australia.

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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 positions in and has recommended Apple, Nvidia, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Argo Investments Ltd (ASX: ARG) has announced it will pay dividends every three months from the start of next year, while also flagging its dividend payments for the year ahead.

Dividend payouts to increase

The listed investment company said it intended to pay four, 10-cent, fully-franked dividends next year, increasing its dividend payments from this year’s 38.5 cents.

Argo’s Managing Director Jason Beddow said the move to quarterly dividends “will provide our shareholders with more regular income to help meet the evolving cash flow needs of many households, while also making Argo more attractive to prospective shareholders”.

Mr Beddow added that the 40-cent dividend payout next year would be another record high for the company.

Argo in FY26 posted a profit of $260.2 million, up from $259.8 million the previous year.

The company said its final dividend “includes a listed investment company (LIC) capital gain component of 5 cents per share, reflecting crystallised gains in the portfolio”.

Argo added:

When Argo realises a capital gain on the sale of a long-term holding in our portfolio, a capital gains tax discount can be passed on to shareholders as though they made the gain themselves. This allows most individuals and self-managed superannuation funds to claim a tax deduction, in addition to the benefit of franking credits. Please note, the LIC capital gain component of this dividend is unaffected by the recent changes to Australia’s capital gains tax (CGT) regime. Argo is engaging with government through our industry association to ensure we maintain our special status as a genuine long-term investor, rather than a trader, so we can continue to provide this benefit to our shareholders.

Trading gains locked in

Major additions to the Argo portfolio over the year included CSL Ltd (ASX: CSL), Amcor Ltd (ASX: AMC), and Megaport Ltd (ASX: MP1).

Sales included Rio Tinto Ltd (ASX: RIO), Reece Ltd (ASX: REH), and Macquarie Group Ltd (ASX: MQG).

Argo said it outperformed the S&P/ASX 200 Index (ASX: XJO) during the year.

The company said:

Argo delivered a full-year return of +8.7% based on net tangible assets (NTA) return after all costs and adjusted for company tax paid, outperforming the Index, which rose +6.1%, without allowing for any costs. The outperformance generated approximately $200 million in additional value for the portfolio. The biggest positive contributors to performance during the financial year were our positions in Rio Tinto, Macquarie Group and Lynas Rare Earths. Our underweight exposure to Commonwealth Bank relative to the Index also boosted returns as the bank’s share price retreated from its lofty valuations, following a sharp sell-off after the May Federal Budget.

Argo said it had outperformed the index over the past five years. The company is valued at $6.91 billion.

The post This outperforming ASX dividend stock will now pay out on a quarterly basis appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in CSL and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended CSL and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) is a very appealing option for a high dividend yield and it could be a strong option for passive income.

The purpose of the VHY ETF is to provide low-cost exposure to ASX shares that have higher forecast dividends relative to other ASX shares.

It achieves diversification by restricting the proportion of the portfolio invested in any one industry to 40% of the total ETF and 10% in any one company. Australian real estate investment trusts (A-REITs) are excluded from the portfolio entirely.

Given that many of the ASX’s largest blue-chip shares also offer sizeable dividend yields, it’s not surprising that many of its biggest holdings are also the largest in Australia.

Major holdings

At the end of August 2026, its biggest holdings were:

• BHP Group Ltd (ASX: BHP)
• Commonwealth Bank of Australia (ASX: CBA)
• National Australia Bank Ltd (ASX: NAB)
• Westpac Banking Corp (ASX: WBC)
• ANZ Group Holdings Ltd (ASX: ANZ)
• Rio Tinto Ltd (ASX: RIO)
• Woodside Energy Group Ltd (ASX: WDS)
• Macquarie Group Ltd (ASX: MQG)
• Telstra Group Ltd (ASX: TLS)
• Transurban Group (ASX: TCL)

Perhaps unsurprisingly, more than 70% of the portfolio is invested ASX financial shares, ASX mining shares and ASX energy shares, which are known for paying large passive income most years.

The portfolio has 92 holdings, though the biggest names carry the largest weightings. The ten names I highlighted above accounted for 61.6% of the total ETF portfolio.

VHY ETF dividend yield

Because the portfolio focuses on passive income and the attractive franking credits that can come with dividends paid by Australian companies, Vanguard reports its dividend yield both excluding and including franking credits.

According to the forecast dividends from FactSet – which Vanguard uses as a dividend data provider – the VHY ETF dividend yield excluding franking credits is forecast to be 4.2%.

Including franking credits (sometimes referred to as a ‘grossed-up dividend yield’), the forecast dividend yield is 5.6%.

What would it take to generate $1,000 of passive income?

The number of VHY ETF shares (called ‘units’) needed to generate $1,000 in dividends depends on whether we include franking credits in the total.

If we exclude franking credits, an investor would likely need about 282 VHY ETF units to generate $1,000 in passive income, assuming the dividend projection is close to reality.

If franking credits are included, then an investor would likely need an estimated 212 VHY ETF units.

It’s a solid option, with the dividends coming from a somewhat diversified portfolio. However, I’d want to add other ASX shares in there too for additional dividend diversification because it is quite heavily focused on a limited number of industries and a tilt towards a few large names.

The post How much must I invest in VHY ETF shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $60,000 annual passive income?
• 3 excellent ASX ETFs for passive income
• 3 ASX ETFs that are a perfect compliment to your superannuation
• How to earn $10,000 in passive income a month with these ASX dividend shares
• Term deposits are paying more than ever. Are ASX dividend shares still worth it?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, 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.