Investors in the VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT) will receive the largest payment of $10.99 per unit.

Those who hold the unhedged VanEck Morningstar Wide Moat ETF (ASX: MOAT) will get the second-highest distribution of $7.56 per unit.

These two ETFs are different in that they do not try to mirror the performance of a major index like the S&P/ASX 200 Index (ASX: XJO).

Instead, the MOAT ETFs track about 50 US shares that have significant competitive advantages, or in other words, a wide 'moat'.

The wider the moat, the more protected a company's brand and its products or services are from competitors in the marketplace.

Here is a summary of VanEck ETFs that will be paying dividends to investors today.

It's payday for VanEck ASX ETF investors!

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Find out more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Here are a few more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

VanEck ETFs among the market's top performers in FY25

According to ASX data, there were two VanEck ETFs among the six best-performing ETFs holding Aussie shares in FY25.

Ranked 4th, the VanEck Australian Banks ETF delivered a total annual return of 24.86%.

Ranked 6th, the VanEck Australian Property ETF produced a total annual return of 22.92%.

Another two VanEck ETFs featured in the six best-performing ETFs holding international shares in FY25.

Check them out here.

The post Invested in ASX MOAT or other VanEck ETFs? It's dividend day! appeared first on The Motley Fool Australia.

The ex-dividend date for the distributions listed below is today, 1 July. The record date is 2 July.

The payment date is 25 July.

The biggest payment amount on the VanEck distribution list is a whopper at $10.99 per unit.

That will be paid to investors who own VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT).

Investors in the unhedged version, the VanEck Morningstar Wide Moat ETF (ASX: MOAT), will receive the second-highest distribution of $7.56 per unit.

The VanEck Wide Moat ETFs are a bit different to the norm. They do not seek to track the performance of a major index, like most ETFs.

Instead, the ETFs hold a portfolio of about 50 US shares that have significant competitive advantages, or in other words, a wide moat.

Here is a condensed list of VanEck ETFs and how much each ETF will pay in dividends to their investors later this month.

Payday for VanEck ASX ETF investors

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Learn more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Show us the money! Here are some more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

The post VanEck ASX ETF dividends: How much you'll get and when appeared first on The Motley Fool Australia.

If $30,000 were sitting in a savings account, it would generate interest. But the capital value wouldn't change, and the income it pays would be stuck at that interest rate unless the RBA were to surprise and increase the interest rate again.

Investing in ASX shares means owning a piece of companies that are doing their best to grow profit, increase the underlying value, and pay more cash to shareholders over the longer term.

But I'm not suggesting that investors need to become expert stock pickers. We can utilise the power of exchange-traded funds (ETFs) to achieve the returns we're seeking. ETFs are funds we can buy on the ASX in a single transaction that own a basket of shares.

Here are three ASX ETFs that could be more useful to own than having cash in the bank.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)

This ETF invests in a portfolio of 25 high-quality, dividend-paying ASX shares that have strong competitive advantages compared to others in the sector, allowing it to continue making large profits.

The DVDY ETF has provided a partial dividend yield of 4% and more than 5%, including franking credits, in the last 12 months. It has also delivered capital growth of 12% in the last year. This combination of dividends and possible capital growth can deliver pleasing returns, and that appeals to me more than a savings account.

Some of the portfolio's underlying investments include Pinnacle Investment Management Group Ltd (ASX: PNI), Brambles Ltd (ASX: BXB), Ansell Ltd (ASX: ANN) and Computershare Ltd (ASX: CPU).

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is one of my favourite ETF investments because of its capability to give Aussies broad exposure to the global share market, which has been one of the best-performing asset classes over the past 10 years.

Impressively, the VGS ETF has delivered an average annual return of approximately 13% since its inception in November 2024. It has achieved this thanks to its helpful allocation to IT/tech companies, which currently make up around 25% of the portfolio. The VGS ETF gives good exposure to businesses like Apple, Nvidia, Microsoft, and Alphabet.

With a low management fee and excellent diversification across a wide range of share markets from around the world, the VGS ETF is far more compelling to me than cash in the bank.

I think this ETF can continue to perform better than a savings account, partly due to growth trends like AI, global digitalisation, and earnings compounding and partly due to its diversification with more than 1,350 holdings.

VanEck MSCI International Quality ETF (ASX: QUAL)

Some investors may think that owning more than 1,300 global businesses is too many. So, why not just own the high-quality ones?

The QUAL ETF screens out some of the lower global stocks from its portfolio and only owns shares in companies that make strong earnings for shareholders and have healthy levels of debt.

Over the last 10 years, this ASX ETF has returned an average of 15.7% per year. It owns similar businesses to the VGS ETF but allocates more to them because it has fewer holdings — around 300 positions.

This seems like a much more appealing option to me, with much more growth potential over the long term than having $30,000 cash in the bank.

The post Transform your savings account into a cash-crushing machine with just $30,000 appeared first on The Motley Fool Australia.

But reaching the point of receiving $1,000 a month in secondary income from the share market is easier said than done.

Today, let's chart out this journey in five steps. Hopefully, this inspires readers to take the first step on their own journey to securing at least $1,000 in monthly passive income

Five steps to $1,000 a month in passive income

1. Get your financial house in order

If you're hoping to secure a stream of passive income from the share market, you will first need to ensure your own financial house is in order.

You'll have to start with any debts you might have. Owing money on your mortgage or your HECS account is one thing. But it's the 'bad debts' like credit cards, personal loans or car payments that you need to eliminate.

These loans for unproductive assets are a major drag on anyone's financials.

Once you've cleared any of these debts, you'll need to structure your personal budget to ensure that you always spend less than you earn. You can't build a stream of passive income without disposable income in the first place.

2. Build a rainy day fund

When you've got to the point when you're consistently spending less than you're bringing in, there's one more step to take before you start investing for passive income. That would be building a rainy day fund. Until you've secured a meaningful stream of secondary income, you're still at the mercy of life's ebbs and flows.

If you get sick, crash the car or have some other kind of unexpected emergency, it's vital to have a rainy day fund there to catch you.

The last thing you want to do is have to sell your shares at an inopportune moment, thanks to something out of your control. Having enough cash to cover three to six months' worth of living expenses is probably a good place to start.

3. Choose your passive income investments

Once your financial house is in order and you have amassed a healthy rainy-day emergency fund, it's finally time to start investing in the stock market. Passive income from stocks comes in the form of dividend payments. As such, you want to choose investments that pay a generous and rising stream of income, preferably fully franked too.

You can always start with popular dividend shares like Westpac Banking Corp (ASX: WBC), Telstra Group LTD (ASX: TLS) or Wesfarmers Ltd (ASX: WES).

Another solid choice is an income-focused exchange-traded fund (ETF). These investments bundle a wide range of dividend-paying stocks together in one easy investment. As we discussed earlier this week, two solid choices, in my view, are the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the VanEck Morningstar Australian Moat Income ETF (ASX: DVDY).

4. Reinvest your dividends

Building a passive income stream worth $1,000 a month won't happen overnight, of course. Remember, buying $1,000 worth of shares that pay a dividend yield of 4% will only get you $3.33 in monthly dividend income to start with.

That's why you need to ensure that you are investing as much as you can, as soon as you can. However, you can turbocharge the process by reinvesting your dividends. This ensures that your capital is compounding as quickly as it can, as well as ensuring that you don't miss that money.

What you don't want to do is to take those dividends and spend them before you're enjoying that $1,000 a month in passive income.

5. Unleash the power of compounding

You're now well on your way to hitting that $1,000 in monthly dividend income. But, building on step four, our final step is to ensure that we are harnessing the power of compound interest as much as possible.

This will take time, probably many years. To achieve $1,000 a month ($12,000 annually) in passive income, you'll need to have, for example, a portfolio worth $300,000 that yields 4% income every year.

If one starts with $1,000 and invests $1,000 a month, it will take just over 13 years to hit $300,000. That's assuming an 8% rate of return and the reinvestment of all dividends. If you can somehow increase your monthly investment or achieve a higher average rate of return, this will cut down your timeframe dramatically.

Remember, compounding exponentially increases your returns the longer you hold the investment. Although it will take just over 13 years to hit $100,00 with the conditions stated above, if you wait for 20, you'll have close to $600,000.

Foolish takeaway

As you can see, building a stream of passive income using ASX shares is not easy. However, it is still one of the most straightforward paths to a secondary income stream most of us have access to.

The sooner you get started, the sooner you can start enjoying that $1,000 in effortless cash every month.

The post Here's my 5-step approach to earning passive income of $1,000 a month appeared first on The Motley Fool Australia.

In fact, ASX dividend ETFs might even be a better option for many income investors. Income-focused funds can provide many advantages for any investor, including inherent diversification, protection against a single stock cutting its dividend, and exposure to a mix of high-yield shares and dividend growth stocks, all in one ticker code.

There are more than a few ASX dividend ETFs. So which to choose? Well, here are two quality options that I would consider buying for income today. One offers a high yield upfront, while the other prioritizes dividend growth.

2 ASX ETFs to buy for passive income today

Vanguard Australian Shares High Yield ETF (ASX: VHY)

First up, we have the Vanguard Australian Shares High Yield ETF. This Vanguard fund gives investors access to a portfolio of around 70 ASX dividend shares, all selected for their current yields, as well as their perceived ability to fund growing dividends into the future.

Some of VHY's current top holdings include CBA, BHP, the other three major banks, Macquarie Group Ltd (ASX: MQG) and Woodside Energy Group Ltd (ASX: WDS).

This ASX dividend ETF typically pays out four dividend distributions every year, which usually come with plenty of franking credits attached as well. At current prices, VHY is trading on a trailing dividend yield of 5.17%.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)

Our second ASX dividend ETF is an offering from VanEck. DVDY functions a little differently from VHY. Instead of around 70 shares, this ASX dividend ETF holds just 25.

These 25 stocks are first assessed for the presence of an economic moat, a Warren Buffett concept that means an intrinsic competitive advantage a company possesses over its competition. They are also assessed for their past, present, and future dividend payment performance.

The provider argues that the presence of this moat should mean that the company will outperform the market over long periods of time.

Some of this ASX dividend ETF's top positions include Macquarie Group, Brambles Ltd (ASX: BXB), Ansell Ltd (ASX: ANN), Charter Hall Group (ASX: CHC) and Computershare Ltd (ASX: CPU).

DVDY units also pay out quarterly dividend distributions. This fund is currently trading on a trailing dividend yield of 3.26%.

The post 2 high-yield ASX dividend ETFs to buy for passive income appeared first on The Motley Fool Australia.

Many ETFs are focused on global shares, which typically come with a low dividend yield. Investors can certainly look at the Vanguard Australian Shares Index ETF (ASX: VAS) for dividends, but there are two other ASX ETFs I want to talk about.

Betashares FTSE 100 ETF (ASX: F100)

This ASX-listed ETF gives investors access to the UK share market – it owns 100 of the largest businesses listed in London.

There are a number of appealing businesses in the portfolio, which have relatively low valuations and reasonably generous dividend payout ratios. This combination usually leads to an attractive dividend yield.

I think it offers more diversification than ASX blue-chip shares, which are mainly focused on ASX bank shares and ASX mining shares.

The biggest positions include Shell, Astrazeneca, HSBC, Unilever, BP, GSK, Relx, Diageo, Rio Tinto and Glencore.

The F100 ETF's portfolio has been a solid performer – in the three years to February 2024 it has delivered an average return per annum of almost 12%.

At the end of February 2024, the ASX ETF had a 12-month distribution yield of 3.3%. That's a solid starting point for a second income, in my opinion.

It has an annual management fee of 0.45%, which I think is quite reasonable for an international-based portfolio.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)

There are plenty of appealing ASX dividend shares beyond the large ASX bank shares and ASX iron ore shares.

The idea of this ASX ETF is that it focuses on quality companies with a high dividend yield, based on its economic moat (or competitive advantages). These businesses have also been judged to have good balance sheets.  

There are a total of 25 holdings within this portfolio, with the biggest five currently being Wesfarmers Ltd (ASX: WES), Carsales.com Ltd (ASX: CAR), ARB Corporation Ltd (ASX: ARB), Pinnacle Investment Management Group Ltd (ASX: PNI) and Macquarie Group Ltd (ASX: MQG).

The DVDY ETF has a 12-month distribution yield of 4.5% and the fund has an annual management fee of 0.35%. I believe this portfolio is a strong choice for a potential second income, combined with good diversification.

I like the names in the ASX ETF's portfolio – they are largely equal-weighted, with the biggest position currently being Wesfarmers at 4.69% and the smallest being Woolworths Group Ltd (ASX: WOW) with a weighting of 3.34%.

The post 2 rewarding ASX ETFs I'd buy to build a second income appeared first on The Motley Fool Australia.

Investors seem to love the diversification and simplicity that ETFs offer, all for what is usually a relatively cheap price (at least compared to what we used to pay managed funds).

As it stands today, simple index funds such as the Vanguard Australian Shares Index ETF (ASX: VAS) and the iShares S&P 500 ETF (ASX: IVV) are still the most popular ETFs on the ASX. But dividend ETFs have also been growing in popularity over the past few years.

How do ASX dividend ETFs work?

A dividend ETF works by selecting a basket of ASX shares that fulfil certain requirements when it comes to dividends. These requirements vary from fund to fund. But they generally include criteria such as a significant dividend yield (preferably with full franking credits attached), financial strength and stability, and a mature business generating plenty of cash flow.

Usually, these dividend ETFs hold fewer underlying shares than a full index fund. For example, the VAS and IVV ETFs named above generally hold around 300 and 500 individual companies respectively. But the Vanguard Australian Shares High Yield ETF (ASX: VHY) holds 75 at the latest count. The iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD) has 49 holdings.

Some of the largest holdings in these two ETFs include shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Limited (ASX: RIO) and National Australia Bank Ltd (ASX: NAB).

Here are some of the prominent ASX dividend ETFs available on the markets today:

• Vanguard Australian Shares High Yield ETF (ASX: VHY)
• iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)
• VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)
• SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)
• BetaShares Australian Dividend Harvester Fund (ASX: HVST)
• Global X S&P/ASX 300 High Dividend ETF (ASX: ZYAU)
• BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
• SPDR S&P Global Dividend Fund (ASX: WDIV)

Generally, these dividend ETFs offer higher dividend yields to ASX investors than what their equivalent index fund might provide. Typically, they also offer quarterly dividend payments (sometimes even monthly).

However, there are some things to watch out for if you go shopping for an ASX dividend ETF.

Things to watch out for when choosing an ASX dividend ETF

Dividend ETFs charge higher fees

If you're looking for the lowest-cost ETFs on the market, it's almost always pure index funds you'll end up with. Dividend ETFs normally charge higher fees for their tailored services. So make sure you compare the fees of an ETF you're looking at to see if they are worth the extra charges you might be asked to pay.

Performance

Although not a universal rule, many dividend ETFs sacrifice overall returns in order to boost the income yield you can expect from your investment. Now some investors who perhaps live off of their dividends might be okay with this.

However, others might not want to pay extra fees in order to get a lower overall return than they might get from an ordinary index fund. Thus, it might be a good idea to look at both short and long-term returns carefully when considering an income-focused fund.

Structure

Not all dividend ETFs are equal. Most out there will hold a basic portfolio of underlying shares in order to generate income. But others, including the BetaShares Australian Dividend Harvester Fund and the BetaShares S&P 500 Yield Maximiser Fund, use more complex derivatives to provide an income boost.

Make sure you understand how these work before investing, as these funds generally charge a higher management fee for this structure. It can also give their portfolios some different performance characteristics that investors should be aware of.

The post The rise of dividend ETFs in Australia: A new era of investment appeared first on The Motley Fool Australia.

I believe there are plenty of ASX ETFs based on international shares that have the potential to provide good capital growth. But Australian companies have the added benefit of paying franking credits to investors, which can boost the after-tax dividend yield for Australian tax residents.

I love individual ASX dividend shares, but I also think there's space in the portfolio for an ASX ETF that owns a group of appealing dividend-paying businesses.

What it does

Provided by VanEck, it has a diversified portfolio of ASX-listed companies selected by Morningstar to provide access to the 25 highest dividend-paying ASX-listed securities [excluding Australian real estate investment trusts (REITs)] that "meet Morningstar's required criteria which combines its 'economic moat' and 'distance to default' measures".

VanEck describes an economic moat as a company's ability to maintain its competitive advantages and defend its long-term profitability. For Morningstar, there are five sources of competitive advantage – switching costs for customers, intangible assets (such as brand power and patents), network effects, cost advantages, and efficient scale.

With the distance to default measure, it's a prediction about how likely a bankruptcy is, which has also been an effective predictor of dividend cuts. It looks at the balance sheet and share price volatility.

This ETF comes with an annual management cost of 0.35%, which is fairly cheap for the amount of analysis work done to create this portfolio.

What is the VanEck Morningstar Australian Moat Income ETF dividend yield?

An ASX ETF essentially just passes on the dividends it receives from its investments to the owners of the ETF units.

So, an ETF's yield isn't necessarily going to be the same over the next 12 months as the last 12 months, even if it owns the exact same businesses because those payments can change.

Since the ETF's inception on 7 September 2020, its passive income return has been an average yield of around 5%. Franking credits are a bonus.

According to VanEck, the 12-month distribution yield as at 31 March 2023 was 6.1%.

What ASX shares does it own?

As mentioned, this ASX ETF owns 25 holdings.

Investors may have heard of some of the largest positions in the portfolio.

On 6 April 2023, these were some of the biggest holdings: Sonic Healthcare Ltd (ASX: SHL), AUB Group Ltd (ASX: AUB), Orora Ltd (ASX: ORA), Steadfast Group Ltd (ASX: SDF), Lovisa Holdings Ltd (ASX: LOV), McMillan Shakespeare Ltd (ASX: MMS), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

Each of those positions have a weighting of at least 4.2%.

Foolish takeaway

I think this ETF can enable investors to buy a group of quality of ASX dividend shares for income and, hopefully, capital growth. But, I think there are certain ASX dividend shares worth a spot in a portfolio that doesn't already include them in its holdings.

The post I think this little-known ASX ETF could be a buy for passive income investors appeared first on The Motley Fool Australia.