These ASX income ETFs could be top buys

Want an income boost? Then check out these ETFs.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're not a fan of stock picking, then exchange-traded funds (ETFs) could be the answer.

That's because they provide investors with access to large numbers of ASX shares through a single click of the button. This means that you can diversify a portfolio almost instantly.

The good news for income investors is that there are plenty of options for them out there.

For example, two ASX ETFs that offer a source of income and could be worth considering are listed below. Here's what you need to know about them:

Australian dollar notes inside the pocket on jeans, symbolising dividends.

Image source: Getty Images

Vanguard Australian Shares Index ETF (ASX: VAS)

The first ASX ETF for income investors to consider buying is the Vanguard Australian Shares Index ETF.

This is a low-cost, diversified, index-based exchange-traded fund that aims to track the ASX 300 index.

This index is home to Australia's leading 300 listed companies. This includes shares such as BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Newmont Corporation (ASX: NEM), and TPG Telecom Ltd (ASX: TPG).

And while not all members of the index pay dividends, the ETF still trades with an attractive dividend yield of 3.8%.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF for income investors to look at buying is the Vanguard Australian Shares High Yield ETF.

This popular ETF gives investors low-cost exposure to a group of 70+ ASX shares that are forecast to have bigger dividend yields compared to the market average.

This includes all the big names such as companies like BHP and Commonwealth Bank of Australia (ASX: CBA), as well as smaller names like Dicker Data Ltd (ASX: DDR) and Lottery Corporation Ltd (ASX: TLC).

Importantly, Vanguard limits how much it invests in any particular industry or company to ensure that you're holding a truly diverse group of shares.

The Vanguard Australian Shares High Yield ETF currently trades with a dividend yield of 5.1%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data, Lottery, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Dicker Data and Macquarie Group. The Motley Fool Australia has recommended Tpg Telecom and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A young man wearing glasses writes down his stock picks in his living room.
ETFs

3 brilliant ASX ETFs to buy after the market selloff

Market volatility has dragged some quality ETFs lower this year.

Read more »

ETF written with a blue digital background.
ETFs

It looks like a great time to buy this top ASX ETF!

This investment could deliver great returns, I think it’s time to invest.

Read more »

A business woman sits in the lotus yoga position near her laptop, indicating a patient investment style
ETFs

This simple ASX ETF strategy matters more than ever in today's uncertain market

Fear rises. Markets fall. The smartest investors keep showing up.

Read more »

Toll road at night time.
Share Market News

Forget AI hype, these ASX ETFs back the real winners of the boom

They tap the real-world assets driving the next growth phase.

Read more »

Smiling young parents with their daughter dream of success.
ETFs

Here are 5 ASX ETFs that I would buy with $50,000

Together, these ASX ETFs offer diversification across global markets, sectors, and long-term growth themes.

Read more »

Two people comparing and analysing material.
ETFs

Is the Vanguard Australian Shares Index ETF a good long-term investment?

If picking individual shares isn’t your thing, this ETF could be the answer.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
ETFs

3 of the best ASX ETFs to buy and hold for a decade

These funds could be great long term options for Aussie investors.

Read more »

woman looking at iPhone whilst working on a laptop
ETFs

Why I'm seriously thinking about buying these ASX ETFs in April

As April approaches, these are two ASX ETFs I’m watching closely for long-term investing.

Read more »