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3 top ETFs with generous dividend yields

The Australian share market is home to a large number of dividend shares to choose from. But if you’re not 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:

VanEck Vectors Australian Banks ETF (ASX: MVB)

If you’re wanting to invest in the banking sector but can’t decide which bank to choose over others, then the VanEck Vectors Australian Banks ETF could be perfect for you. This ETF allows investors to invest in the whole sector through a single investment. The VanEck Vectors Australian Banks ETF provides exposure to the big four, the regional banks, and Macquarie Group Ltd (ASX: MQG). Its units currently provide a 5.4% partially franked dividend yield.

Vanguard Australian Shares Index ETF (ASX: VAS)

But if you’d rather own a more diversified ETF then the Vanguard Australian Shares Index ETF could be the one. This ETF has been set up to mirror the S&P/ASX 300 index. Which means it provides investors with exposure to a vast array of shares ranging from blue chips to mid cap growth shares. This includes the likes of Commonwealth Bank of Australia (ASX: CBA), Transurban Group (ASX: TCL), and Super Retail Group Ltd (ASX: SUL). It currently provides investors with an attractive 4% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another good option for income investors could be the Vanguard Australian Shares High Yield ETF. This fund is invested in 60 of the highest paying dividend shares on the local market. These include BHP Group Ltd (ASX: BHP), Telstra Corporation Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and the big four banks. The ETF offers income investors a forecast forward 5.3% dividend yield at present.

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Top 3 Dividend Shares To Buy For 2020

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited, Telstra Limited, Transurban Group, and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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