For investors seeking steady passive income alongside long-term market exposure, income-focused exchange-traded funds (ETFs) can be an excellent solution. They provide diversification, professional management, and regular distributions without the need to pick individual dividend stocks.
With that in mind, here are three ASX income ETFs that could help keep cash flowing into your portfolio over the next decade.
Image source: Getty Images
Vanguard Australian Shares High Yield ETF (ASX: VHY)
The first ASX ETF to look at is the Vanguard Australian Shares High Yield ETF. It is designed to deliver a high level of franked dividend income from a portfolio of Australian shares with above-average forecast yields. Its current equity yield is 4.7%, paid quarterly, making it a favourite among income-focused investors.
This ASX ETF is heavily weighted toward the ASX's biggest dividend payers across financials, resources, and telecoms, with top holdings including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS).
A $10,000 investment at a 4.7% yield could deliver approximately $470 per year in cash flow before franking credits.
Vanguard Australian Shares Index ETF (ASX: VAS)
Another ASX ETF to look at is the Vanguard Australian Shares Index ETF. It is one of the largest ETFs in Australia and offers investors broad exposure to the S&P/ASX 300 Index, effectively giving you a slice of Australia's biggest companies.
While it is not a dedicated income ETF, its 3.3% dividend yield, paid quarterly, provides reliable income from a diversified base.
The Vanguard Australian Shares Index ETF could be a top pick for investors who want both dividends and capital growth potential, as it tracks the overall market. Top holdings include CBA, BHP, Westpac Banking Corp (ASX: WBC), and CSL Ltd (ASX: CSL), delivering a balance of bank dividends and exposure to world-class industrial and healthcare leaders.
A $10,000 investment would yield $330 in annual passive income.
Betashares Global Royalties ETF (ASX: ROYL)
Finally, the Betashares Global Royalties ETF is an ASX ETF to look at. It takes a more unique approach to income by investing in global royalty companies that earn revenue from intellectual property, natural resources, and royalty streams. This includes assets tied to music, technology, biotech, and precious metals. Its current yield is 3.9%, paid monthly, giving investors a consistent flow of cash.
Among its top holdings are names such as Wheaton Precious Metals Corp (NYSE: WPM), Arm Holdings Plc (NASDAQ: ARM), Franco-Nevada Corp (NYSE: FNV), and Universal Music Group NV (AMS: UMG).
Royalty companies often enjoy high-margin, recurring revenues without the operational risks faced by traditional businesses, potentially making this ETF a diversifying income play that complements Australian dividend exposure.
A $10,000 investment would pull in $390 of annual passive income currently. It was named as one to buy by the team at Betashares.
