How to make income from ASX shares in a market correction

If you're worried about your ASX shares in the market correction, check out these ways to beat the market and make money this week.

There's no doubt that it's been a bad week for ASX shares as the S&P/ASX 200 Index (INDEXASX: XJO) slumped lower for a sixth straight day yesterday.

Concerns over the coronavirus and its impact on the global economy have ramped up in recent days. So, with domestic and global markets falling lower, how can you keep making an income from ASX shares right now?

a woman

If you can't beat them, join them…

If you're thinking that this is just the start, then you can still make some money as ASX shares fall lower. One solution is to buy a contrarian exchange-traded fund (ETF) like BetaShares Australian Equities Bear Hedge Fund (ASX: BEAR). 

This BetaShares ETF has the goal to "generate returns that are negatively correlated to the returns of the Australian sharemarket". Another note on their website says it provides Australians with "a simple and cost-efficient way to profit from or protect their portfolio against declines in the market".

If ever there was a time to buy something like this, it would be this week. There have been billions of dollars of value wiped off ASX share valuations in the past week or so.

Meanwhile, the BetaShares BEAR ETF is up 11.49% since Thursday 20 February. While that could mean it gets results, it also may be that more investors are buying and boosting demand.

Buy high-yield ASX shares for more income today

One of the silver linings of a market correction is that dividend yields can jump on some ASX shares.

Take a look at Fortescue Metals Group Limited (ASX: FMG) for example. The group's dividend yield has surged into double digits and is sitting at 10.91% per year. The Fortescue share price has dropped 16.64% in the last month but that's far from the worst decline amongst ASX resources shares.

Buying something like Fortescue or an ASX gold miner like Saracen Mineral Holdings Limited (ASX: SAR) could be a good way to boost short-term income and get some value for money along the way.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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