Are you in the process of building an income portfolio but don't feel like you have sufficient funds to maintain a truly diverse portfolio? Then exchange traded funds (ETFs) could be a great option for you.
There are a number of ETFs that have been set up to give investors exposure to a collection of dividend shares through a single investment. Two that could be worth considering are listed below:
Vanguard Australian Shares High Yield ETF (ASX: VHY)
The first ETF for income investors to consider is the Vanguard Australian Shares High Yield ETF.
This ETF provides investors with low-cost exposure to companies that have higher than average forecast dividends. This is done with diversification in mind, with the fund restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company.
Among the companies included in the fund are the big four banks and mining companies such as BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG).
The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.9%.
BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
Another ETF for income investors to look at this week is the BetaShares S&P 500 Yield Maximiser.
BetaShares notes that this ETF aims to generate attractive quarterly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index.
This index is home to 500 of the largest companies listed on Wall Street. Among the companies you'll be investing in are the likes of Apple, Johnson & Johnson, Microsoft, and United Health.
At the last count, the BetaShares S&P 500 Yield Maximiser's units were providing investors with a 6.2% distribution yield.
