Shift your focus to passive income with these dividend ASX ETFs

These funds can bring you passive income amidst broader market volatility.

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In just over a week of trading during March, many investors have endured heavy losses to their portfolio. 

The S&P/ASX 200 Index (ASX: XJO) is down 6.5% since 2 March.

Meanwhile the S&P 500 Index (SP: .INX) is down more than 2%. 

Markets are coming under heavy pressure due to conflict in Iran. 

Investors are now seemingly in a complete "risk-off" mode, as most sectors are being heavily sold-off, even those not directly impacted by the conflict. 

With the timeline and future of the situation extremely unclear, its likely defensive assets like gold could continue to benefit. 

When markets endure pressure like we have seen to start the month, it can be a good time for investors to switch focus to generating passive income through consistent dividends. 

This can provide some relief when individual shares are falling. 

Here are three ASX ETFs that have a history of paying consistent dividends.

Happy young woman saving money in a piggy bank.

Image source: Getty Images

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This is a popular dividend focussed ASX ETF. It seeks to track the return of the FTSE Australia High Dividend Yield Index.

According to Vanguard, it provides exposure to companies listed on the Australian Securities Exchange (ASX) that have higher forecasted dividends relative to other ASX-listed companies. 

It has consistently paid a yield hovering around 4% and includes a combination of roughly 80 blue-chip and mid-sized companies. 

This includes well-known dividend payers like the big-four banks, and mining giants like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

It has a management fee of 0.25% per annum.

SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)

This ASX ETF seeks to track the returns of the MSCI Australia Select High Dividend Yield Index. 

At the time of writing, it is made up of 57 underlying holdings in companies with relatively high dividend income and quality characteristics with the potential for franked dividend income.

It currently offers a dividend yield of 3.92%, with distributions paid quarterly and a management fee of 0.20% per annum.

BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

YMAX ETF aims to generate attractive monthly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of the 20 largest blue-chip shares listed on the ASX. 

Unlike many other ASX ETFs, YMAX ETF does not aim to track an index.

It currently has a 12 month gross distribution yield of 8.8%. 

Another positive of this ASX ETF is that distributions are now paid monthly, however due to the ongoing management, it has an annual fee of 0.64% per annum.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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.

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