The share market can be a great place to earn a second income. However, if you're not confident about stock picking, it can be intimidating.
But don't let that stop you from generating income from the share market. Not when there are ASX exchange-traded funds (ETFs) out there that can make your life easier by giving you access to large groups of dividend-payers with one click of a button.
Two such ASX ETFs that could be worth considering are listed below. Here's what you need to know about them:
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BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The BetaShares S&P 500 Yield Maximiser could be a great option for investors looking to generate a second income.
This ASX ETF gives investors access to the top 500 companies listed on Wall Street with a 'covered call' strategy. This strategy allows the actively managed fund to potentially earn quarterly income that is significantly greater than the dividend yield of the underlying share portfolio.
For example, at the last count, its units were providing investors with a trailing 6.4% distribution yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Another ASX ETF that could help generate a second income is the Vanguard Australian Shares High Yield ETF.
It gives investors access to a group of ASX-listed shares that have higher-than-average forecast dividends.
The ETF has diversity in mind and limits the proportion invested in any one industry to 40% and 10% for any one company. Among its holdings are dividend shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).
At present, the Vanguard Australian Shares High Yield ETF trades with a dividend yield of approximately 5.8%.
