If you're wanting to build an income portfolio but aren't a fan of stock picking, then ASX exchange-traded funds (ETFs) could be the answer.
That's because they offer you the chance to invest in large groups of dividend shares with a click of a button.
But which ASX ETFs would be good options for income investors this month? Two to consider in January are listed below:
BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The first ASX ETF for income investors to look at is the BetaShares S&P 500 Yield Maximiser.
This ETF has been designed to give investors access to the top 500 companies listed on Wall Street. This includes giants such as Apple, Exxon Mobil, Johnson & Johnson, and Walmart.
And while the S&P 500 index currently has a dividend yield of just 1.5%, this ETF's actively managed covered call strategy means it has been paying out significantly more.
For example, at the last count, its units were providing investors with a trailing 5.8% distribution yield.
Vanguard Australian Shares Index ETF (ASX: VHY)
Another ASX ETF that could be a top option for income investors is the popular Vanguard Australian Shares High Yield ETF.
It offers investors low-cost exposure to a group of ~70 ASX shares that have higher forecast dividends relative to the market average. This includes the usual suspects such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), but also smaller names like Codan Limited (ASX: CDA).
It is also worth noting that the fund is constructed with diversification in mind. Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company.
The ETF currently trades with a trailing dividend yield of 5.5%.
