With interest rates starting to fall, passive income-focused investors might find it harder to secure the attractive term deposit rates seen in recent years.
But that doesn't mean you have to settle for lower returns.
For those seeking regular income, a pair of high-yield ASX ETFs could offer a smart alternative.
Let's take a closer look at two standout options for investors looking to generate steady, quarterly income from their portfolio. They are as follows:
Nasdaq 100 Yield Maximiser Fund (ASX: QMAX)
If you're keen to tap into the growth of global tech giants but also want a reliable passive income stream, then Betashare's Nasdaq 100 Yield Maximiser Fund could be just what you're looking for.
This ASX ETF provides exposure to the top 100 companies on the Nasdaq index, including big names like Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), Tesla (NASDAQ: TSLA), and Microsoft (NASDAQ: MSFT).
These are some of the most innovative and dominant businesses in the world — the kind of companies that have transformed how we live, work, and shop.
But QMAX doesn't just hold these stocks. It also boosts income by using a covered call strategy, selling call options over its holdings to generate additional income. This means investors enjoy the benefits of market exposure while collecting regular income along the way.
As a result, this fund delivers a higher-than-average yield, with a trailing distribution yield of 6.9%, paid out quarterly. It was named as one to consider buying by the team at Betashares.
Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)
For those who prefer to focus on home soil, Betashare's Australian Top 20 Equity Yield Maximiser Fund could be one to consider. It offers a compelling way to generate passive income from Australia's most established blue-chip companies.
This ASX ETF holds the top 20 ASX-listed companies across key sectors like financials, materials, and healthcare. That includes household names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES).
Like QMAX, this fund employs a covered call strategy, boosting the income generated from its holdings. This focus has helped YMAX deliver a trailing 12-month distribution yield of 7.7%, with dividends also paid quarterly.
For investors seeking strong, regular income from local blue chips, YMAX could be a valuable core holding as term deposit rates decline. It was also named as one for income investors to buy by the team at Betashares.
