The S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) are trading close to all-time highs. 

This can make it feel difficult to identify individual stocks that are undervalued. 

When that's the case, it can be a good opportunity to turn to income investing. 

Dividend or income investing focuses on owning assets that pay regular cash (like dividends). This means your returns don't rely entirely on rising share prices. 

When equities look expensive, this strategy is attractive because income provides a steady return and downside cushion. This allows you to stay invested and get paid while waiting for better valuation-driven opportunities.

Here are 3 ASX ETFs income focussed investors might consider. 

Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

This ASX ETF invests in 50 high-dividend stocks from the S&P/ASX 200 Index.

This fund is designed to focus on forward-looking positive dividend yields while ensuring it does not deviate too much from the benchmark in terms of sector weights. 

To achieve this, Global X applies a momentum filter. The filter removes stocks experiencing sharp price falls, helping to reduce the risk of being exposed to dividend traps.

According to a recent report from Global X, the fund is a purely income-focused strategy with limited capital gain upside, making it well-suited to sideways or falling markets while helping investors supplement portfolio returns in a challenging environment.

The ASX ETF provider said it currently has a trailing annual distribution income of ~10% p.a., made up of dividends, franking credits, and options premium yield, and is currently the only index-based Australian share covered call ETF on the market.

Betashares S&P Australian Shares High Yield Etf (ASX: HYLD)

This fund aims to track the performance of an index (before fees and expenses) that provides exposure to a share portfolio of 50 high-yielding Australian companies.

It currently offers a dividend yield of approximately 4.5%. 

According to Betashares, it seeks to improve on traditional high-dividend strategies by aiming to screen out potential 'dividend traps' such as companies projected to pay unsustainably high dividend yields, as well as companies that exhibit high levels of volatility relative to their forecast dividend payout.

It includes a similar portfolio to the Global X fund above, with an exposure to some of Australia's largest banking and mining companies. 

Russell Investments High Dividend Australian Shares ETF (ASX: RDV)

Another strong income ETF to consider is the Russell High Dividend Australian Shares ETF. 

This fund aims to track the Russell Australia High Dividend Index, which comprises Australian blue-chip companies with a bias towards those that have a high expected dividend yield. 

It combines this with companies that meet other characteristics including: 

• a history of paying dividends
• dividend growth
• consistent earnings.

It has a yield of just over 4.5%. 

The post 3 high yield ASX ETFs perfect for income investors appeared first on The Motley Fool Australia.

On Tuesday, we saw scores of internationally-focused ETFs reach either 52-week highs, multi-year highs, or all-time record prices.

Some of the most popular ETFs were among them, such as iShares S&P 500 ETF (ASX: IVV), Betashares Nasdaq 100 ETF (ASX: NDQ), Vanguard MSCI Index International Shares ETF (ASX: VGS), Global X FANG+ ETF (ASX: FANG), and iShares Global 100 AUD ETF (ASX: IOO).

The ETFs soared due to ongoing strength in the US market, with the S&P 500 Index (SP: .INX) smashing another all-time high this week.

Over the years, Aussies have enthusiastically invested billions in ASX ETFs to gain easy, diversified exposure to international shares.

This trend continues today, with a record $5.28 billion invested in July alone.

Next week, scores of ETFs go ex-dividend, which means time is running out for investors who may want to top up their holdings.

To receive an ETF's next dividend, you must buy or already own the ETF before its ex-dividend date.

We provide a sample of ETFs going ex-dividend below.

If you want to buy any of these ETFs to score their next dividend (or 'distribution') payments, you'd better be quick!

24 ASX ETFs with ex-dividend dates next week

At this stage, most providers have only released estimated distribution amounts. They will release finalised figures in due course.

The post 24 ASX ETFs going ex-dividend next week appeared first on The Motley Fool Australia.

This can range from international indexes like the S&P 500 Index (SP: .INX), to niche themes like ESG or Artificial Intelligence. 

However, some funds are designed to bring investors market-beating dividend yields. 

Investors may choose these funds to focus on generating passive income rather than capital gain. 

So, let's compare three that share this objective. 

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

This is one of the newest ASX ETFs on the market, listing less than one month ago. Looking at the basics, it is made up of 50 holdings with a management fee of 0.25% per annum.  

According to Betashares, the theory behind the fund is to improve on traditional high-dividend strategies by aiming to screen out potential 'dividend traps' such as companies projected to pay unsustainably high dividend yields, as well as companies that exhibit high levels of volatility relative to their forecast dividend payout.

Its four largest holdings by percentage are: 

• Westpac Banking Corp (ASX: WBC) 10.9%
• National Australia Bank Ltd (ASX: NAB) 10.3%
• ANZ Group Holdings Ltd (ASX: ANZ) 10.2%
• BHP Group Ltd (ASX: BHP) 9.7%

According to the fund, it currently trades on a 12-month trailing dividend yield of 4.5%. Investors are paid dividends monthly.

Therefore, after fees, a $10,000 investment generates approximately $425 in yearly passive income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This ASX ETF is made up of 75 holdings, and it comes with a management fee of 0.25% per annum. 

The index has risen approximately 46% over the past five years, bringing solid growth alongside consistent yields. 

The theory behind this fund is to invest in ASX stocks that have higher forecast dividends relative to other ASX-listed companies. Security diversification is achieved by restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company.

Additionally, Australian Real Estate Investment Trusts (REITS) are excluded from the index.

Its largest holdings by weight are: 

• BHP Group Ltd (ASX: BHP) 9.8%
• Commonwealth Bank of Australia (ASX: CBA) 9.6%
• National Australia Bank Ltd (ASX: NAB) 6.7% 
• Westpac Banking Corp (ASX: WBC) 6.5%

Its current equity yield is 4.7%, paid quarterly. Therefore, an investor would be paid approximately $445 per year after fees from a $10,000 investment. 

Russell Investments High Dividend Australian Shares ETF (ASX: RDV)

This fund is made up of 50 holdings. Additionally, it has a management cost of 0.34% per annum.

The theory behind this fund is choosing Australian blue-chip companies with a bias towards those that have a high expected dividend yield but also meet other characteristics, including: a history of paying dividends; dividend growth, and consistent earnings.

Notably, it has risen 46.23% in the last 5 years. 

Its four largest holdings by percentage are: 

• Commonwealth Bank of Australia (ASX: CBA) 8.2%
• BHP Group Ltd (ASX: BHP) 5.3%
• National Australia Bank Ltd (ASX: NAB) 5.2%
• Westpac Banking Corp (ASX: WBC) 5%

Based on an announcement in June, it has a yield (with franking) of 4.05% per annum.

Therefore, a hypothetical $10,000 investment in RDV would receive about $371 per year on a grossed-up basis after fees. 

The post What is the best high yield ASX ETF? appeared first on The Motley Fool Australia.

Moomoo market strategist Jessica Amir has helpfully picked out the three most common ones and set out why they shouldn't stop you from buying stocks right now:

1. 'It's too hard'

This could be the most heard excuse for inaction, especially from those who have never bought ASX shares.

Amir argues that this might have been true in the old days when everything was done on paper through human brokers, but it's now 2024.

"Buying a share is as easy as buying groceries, whether it's a domestic stock or from overseas," she said.

"Nowadays, trading fees from brokerages like Moomoo can start from as little as $1, so there's little financial barrier to investing."

There are also plenty of free educational resources on the internet to get started, including a host of articles from The Motley Fool's Education Hub, so there's no excuse to not invest.

"So don't be afraid to take the first step — these days, it's usually a free one!"

2. 'Now isn't a good time to invest in the stock market'

We've all heard this investing myth before.

When stocks are down, the haters say this citing poor investor sentiment. When stocks are bullish, the critics say this because they think it's all too expensive.

So when is a good time to invest?

Amir reckons people are missing the point when they talk about 'good' and 'bad' times to buy shares.

"As the saying goes in the investing world, it's not about timing the market, but your time in the market.

"The best step to investing is a small one, even if it's just a hundred dollars you put towards investing into a highly diversified ETF."

Having said that, she added 2024 was looking bullish.

"The Australian and US share market are at an all-time high and there is plenty of exuberance in booming industries across the globe.

"Interest rates are easing up this year so it's likely we will see more consumer spending and investors trading, which helps support our share market."

Amir noted earnings generally declined last year.

"So it may be likely that shares will be bouncing back this year."

3. 'There's too much choice'

There is no satisfying some people. 

Would they rather that there are insufficient choices?

Amir suggests that investors don't have to complicate the situation by researching deep into microcaps.

There is nothing wrong with blue chip stocks to get started.

"The S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) are great places for new investors to start. 

"Not only are you exposed to some of the highest-performing stocks in the share market, but they are regularly managed to stimulate a profit."

Even amid the volatility last year, you would have done well with well-known large-cap names.

"If you had invested $10,000 into the S&P 500 at the start of January 2023, you would have made over $2,400 by December 2023."

Amir named iShares S&P/ASX Dividend Opp ESG Screened ETF (ASX: IHD), Russell Inv High Dividend Australian Shares ETF (ASX: RDV) and BHP Group Ltd (ASX: BHP) as some popular names to get started on the ASX.

"BHP continues to make the nation go round, supplying domestic and global products for building iron scaffolds, buildings, cars, and infrastructures.

"With a 5-year growth of 34.7%, it's no wonder it's an investment choice often made by superannuation funds, fund managers and sophisticated investors."

The post 3 popular investing myths BUSTED appeared first on The Motley Fool Australia.

Leading ETF provider BetaShares estimates $4.8 billion of net inflows into ETFs in January to May alone this year. Fixed-income ETFs have received the most inflows at $2.5 billion, with Australian shares ASX ETFs attracting $1.6 billion of net inflows, and cash ETFs bringing in $688 million of net inflows.

BetaShares says ETF investing has recorded a compound annual growth rate (CAGR) of 43% since they were first invented and launched in 2001.

New data from the ASX quantifies the returns of ASX ETFs over the past three financial years.

In this article, we take a look at the top five performers for total investor returns.

The top 5 ASX ETFs for total returns

For the purposes of this article, we're going to focus on the ASX ETFs that invest in Australian shares only, based on a certain strategy.

We're excluding the index-based and sector-based ETFs that do not have a manager executing a defined strategy.

This way, we get a peek at which ETF providers are performing best, and also which investing strategies are delivering the top results right now.

According to the data, here are the top five ASX ETFs:

The BetaShares Geared Australian Equity (Hedge Fund) (ASX: GEAR) ETF returned an average of 24.95% per annum. This includes reinvested dividends which have historically averaged a yield of 4.89%.

Vanguard Australian Shares High Yield ETF (ASX: VHY) returned an average of 17.13% per annum. This includes reinvested dividends which have historically averaged 5.04%.

The SPDR MSCI Australia Select High Dividend Yield (ASX: SYI) ETF returned an average of 14.62% per annum. This includes reinvested dividends which have historically averaged 5.76%.

Russell Investments High Dividend Australian Shares ETF (ASX: RDV) returned an average of 12.41% per annum. This includes reinvested dividends which have historically averaged 5.36%.

Russell Investments Australian Responsible Investment ETF (ASX: RARI) returned an average of 11.02% per annum. This includes reinvested dividends which have historically averaged 3.94%.

More about the No 1 ETF

ASX ETF BetaShares Geared Australian Equity Fund (Hedge Fund) gives investors a cost-effective way to access geared exposure to the returns of the S&P/ASX 200 Index (ASX: XJO).

So, it's like an index fund for the ASX 200 but with a special strategy.

That strategy is to use leverage — or borrowed funds — to magnify returns.

The GEAR ETF currently has a leverage of 2.3x. That means it seeks a return of 2.3x the ASX 200 on a daily basis. But leverage goes both ways. It also magnifies losses in the same multitude.

The old saying is that leverage can provide 'an elevator to the ceiling — and the basement'.

Here is a chart documenting the performance of this Australian shares ASX ETF against the ASX 200 over the past three years.

The post Which Australian shares ASX ETFs are delivering the best returns for investors? appeared first on The Motley Fool Australia.