Exchange traded funds (ETFs) don't just provide investors with access to indices, countries, or sectors. They also allow investors to achieve different investment goals.
For example, if you're wanting to build an income portfolio, you could buy the ETFs named below that have been designed to provide investors with exposure to a collection of dividend shares.
Here's what you need to know about them:
BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The first ETF for income investors to look at is the BetaShares S&P 500 Yield Maximiser.
This ETF has been designed to provide income investors with attractive quarterly income and low volatility.
BetaShares aims to do this via an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index on Wall Street. This clever strategy allows the ETF to generate a greater than average yield from the constituents of the index.
In fact, at the last count, the BetaShares S&P 500 Yield Maximiser's units were offering investors an 8.7% distribution yield.
Among the shares listed on the S&P 500 index are dividend-paying giants such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
If you're wanting to invest locally then income investors might want to look at the Vanguard Australian Shares High Yield ETF.
This ETF focuses on investing in a collection of ASX shares that have higher forecast dividends relative to the rest of the market.
And it does this 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 the last count, there were 70 ASX shares included in the portfolio. These include giants such as Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC).
The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.4%.
