ASX exchange-traded funds (ETFs) are a popular choice among investors because it's a simple and low-cost way to get access to a wide range of assets, without needing to buy individual stocks.
ASX ETFs offer instant diversification, they traditionally have low fees, and because they usually track an index they tend to grow consistently and steadily over time.
Just as importantly, ASX ETFs are a great way to earn passive income because they pay a dividend. Unlike stocks which pay dividends directly to shareholders, ASX ETFs would have a portfolio of dividend-paying shares which the fund collects and passes onto its investors.
Like any ASX dividend-paying stock, this is usually paid out quarterly or annually. But then there are the rare few ASX ETFs that pay income to investors monthly.
The monthly-paying ASX ETF on my radar right now is the Betashares Dividend Harvester Active ETF (ASX: HVST).
Here's a rundown of how it works and what it pays.
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What's the fund's investment strategy?
The Betashares HVST is an ASX-listed ETF that invests in 40 to 60 dividend-paying companies.
These are selected from the 100 largest companies listed on the ASX based on their dividend forecasts, franking credits, and expected future gross dividend payments.
The fund does not track an index; instead, it targets exposure to high-dividend stocks.
The fund is created in a way that allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next opportunity.
What does HVST ETF pay its investors?
HVST ETF pays its investors a regular, partially-franked dividend income every single month.
Its annual dividend yield is around double the annual income yield of the broader ASX.
As of the 27th of February 2026, the HVST ETF pays a 12-month gross distribution (dividend) yield of 7%, and a net yield of 5.5%. Its franking level is 64.7% and it has an annual management fee of 0.72%.
Its most recent dividend payment was in mid-March when it paid out 6 cents per share to investors. The fund also paid out $0.06 per share to investors in late February and in January.
HVST shares have trailed the S&P/ASX 200 Index (ASX: XJO) index over the past 12 months. At the time of writing, the ASX ETF's share price has climbed 1.4% over the past 12 months, compared with the ASX 200's 9.3% annual gain.
