As well as providing investors with access to different sectors, indices, and regions, you can use exchange traded funds (ETFs) to achieve different investment goals.
For example, if you want to build a passive income, you could buy the ASX-listed ETFs named below that have been designed to provide investors with generous dividend yields. Here's what you need to know about them:
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BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The first ETF for investors to look at for a passive income is the BetaShares S&P 500 Yield Maximiser.
This ETF has been designed to provide income investors with attractive quarterly income with low volatility.
BetaShares aims to achieve this by implementing an equity income investment strategy over a portfolio of shares comprising the famous S&P 500 Index on Wall Street.
This index is home to 500 of the largest companies listed on Wall Street and includes dividend-paying giants such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.
At the last count, the BetaShares S&P 500 Yield Maximiser's units were offering investors an 8.7% distribution yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Another ETF for investors to look at is the Vanguard Australian Shares High Yield ETF.
As its name implies, this ETF provides investors with exposure to a group of ASX shares that have higher forecast dividends relative to the rest of the market.
The good news is that this is done with diversification in mind. The Vanguard Australian Shares High Yield ETF restricts the proportion invested in any one industry to 40% and 10% for any one company.
At present there are 70 ASX shares included in the portfolio. These include giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).
The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 6%.
