If you are looking to turn your portfolio into a reliable income machine, the Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) could be worth a look.
Designed specifically for income-focused investors, the YMAX ETF isn't your average ETF.
It is engineered to squeeze more income from Australia's top blue-chip ASX shares — and in today's environment of falling term deposit rates and market uncertainty, that's a compelling proposition.
So, how does it work — and what makes it so appealing to passive income investors?
A yield-focused twist on blue-chip investing
The YMAX ETF invests in a portfolio of the top 20 companies on the ASX, which includes household names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp (ASX: WBC).
These companies are already known for their dividend-paying reliability — but this ASX ETF takes it one step further by applying a covered call strategy.
In simple terms, that means it generates additional income by selling call options over the shares it already holds. It is a strategy designed to generate more yield from existing holdings, especially when markets are flat or range-bound.
The result? A significantly boosted income stream for investors.
High distribution yield, paid quarterly
Over the past 12 months, the YMAX ETF has delivered a distribution yield of 8%. That's a serious step up from most term deposits — and it comes with the potential for capital growth over the long term.
The fund also provides franking benefits, with a 12-month average franking level of 48.2%, adding even more value for Australian investors, especially those in lower tax brackets or retirees looking to maximise tax-effective income.
What's under the hood?
YMAX is built around quality. Here's a snapshot of its top holdings and weightings:
- Commonwealth Bank – 17.3%
- BHP – 12.5%
- CSL – 8.3%
- Westpac – 7.4%
- NAB – 7.1%
- ANZ Bank – 6%
- Wesfarmers – 5.6%
These are companies with strong cash flows, established market positions, and long track records of delivering for shareholders.
Foolish takeaway
For investors chasing higher yields without stepping into risky territory, the YMAX ETF offers a compelling blend of blue-chip reliability and income-focused strategy. It is a fund designed not to beat the market, but to help you generate consistent, tax-effective income — and that's something many investors are actively seeking in today's market.
Whether you're building a passive income stream, supplementing your retirement income, or just looking for a smarter way to invest in Australia's top stocks, the YMAX ETF arguably deserves a close look.
