If you're searching for a source of income but aren't sure which shares to buy, then ETFs could be a good option for you.
This is because there are a number of ETFs that have been set up to give investors exposure to a collection of dividend shares.
Three that I think are worth considering are listed below:
SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)
This ETF has been designed to reflect the performance of listed Australian companies with relatively high dividend income and quality characteristics. It includes Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks, Wesfarmers Ltd (ASX: WES) and Rio Tinto Limited (ASX: RIO). At present its units provide a 6% dividend yield, which is paid to unit holders in quarterly instalments. Which could be very helpful for your cash flow.
Vanguard Australian Shares Index ETF (ASX: VAS)
Another option for income investors to consider is the Vanguard Australian Shares Index ETF. It has been designed to mirror the S&P/ASX 300 index. This means it gives investors exposure to blue chips such as the banks, BHP Group Ltd (ASX: BHP), and Telstra Corporation Ltd (ASX: TLS), and smaller companies including Accent Group Ltd (ASX: AX1) and Cedar Woods Properties Limited (ASX: CWP). I like the diversity of this ETF, its low fees, and attractive 4% dividend yield.
VanEck Vectors Australian Banks ETF (ASX: MVB)
Finally, if you're interested in investing in bank shares but can't decide which one to buy, then the VanEck Vectors Australian Banks ETF could be for you. This is because this ETF gives investors the opportunity to get a piece of them all in a single investment. The VanEck Vectors Australian Banks ETF provides exposure to all the big four banks, the regionals, and also Macquarie Group Ltd (ASX: MQG). Its units currently provide a 5.4% partially franked dividend yield.
