One way is with exchange traded funds (ETFs) that focus on dividend-paying Australian or international shares.

But which ones could be buys for passive income?

Here are three ASX ETFs that could be worth looking at:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to look at is the Vanguard Australian Shares High Yield ETF.

This fund provides exposure to ASX-listed companies with higher forecast dividends than the broader Australian share market.

Its portfolio includes many of the country's best-known income shares, including banks, miners, energy companies, and telecommunications businesses. Holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

The attraction here is simplicity. Instead of trying to choose individual dividend shares, investors can gain diversified exposure to a basket of high-yielding Australian companies in one trade.

The Vanguard Australian Shares High Yield ETF could suit investors who want income from familiar ASX names without relying on just one or two companies.

Betashares Global Royalties ETF (ASX: ROYL)

Another ASX ETF to look at is the Betashares Global Royalties ETF.

This fund takes a less conventional path to income. It invests in global companies that earn royalty-style revenue from assets such as commodities, intellectual property, infrastructure, and other long-life sources.

Royalty businesses can be attractive because they may benefit from the use or production of an asset without carrying the same operating burden as the company running it directly.

Its holdings include Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

This gives the Betashares Global Royalties ETF a different income profile from a traditional dividend ETF. Its distributions are linked to businesses that can generate cash from assets, rights, or agreements rather than everyday operating activity alone. It was recently recommended by the team at Betashares.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A third ASX ETF that income investors may want to look at is the Betashares S&P 500 Yield Maximiser Complex ETF.

It provides exposure to the US share market while using an options strategy to help generate passive income.

This means its distributions are not driven only by dividends from the underlying companies. A key part of the income comes from selling call options and collecting the premiums from those contracts.

Its underlying exposure includes major US companies such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).

The trade-off is important. This type of strategy can lift income, but it may limit some upside if the US market rises strongly.

For investors focused more on cash flow than maximising capital growth, the Betashares S&P 500 Yield Maximiser Complex ETF offers a different way to turn global equity exposure into regular income.

The post Which ASX ETFs could be buys for passive income? appeared first on The Motley Fool Australia.

It works out to $1,000 a month, which could help cover bills, boost savings, or provide extra breathing room in retirement.

But the key question is this: how much money would you actually need to invest to generate it?

Here is how the numbers stack up for three ASX exchange traded funds (ETFs) based on their current dividend yields.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to look at is the Vanguard Australian Shares High Yield ETF.

This fund gives investors exposure to ASX shares with higher forecast dividends than the broader market. It is focused on Australian income shares and includes a range of large companies across sectors such as banks, resources, energy, and telecommunications.

Its holdings include the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

This makes the Vanguard Australian Shares High Yield ETF a simple way to gain diversified exposure to Australian dividend shares without having to choose individual income stocks.

Based on its current dividend yield of 4.15%, an investor would need to invest approximately $290,000 to generate $12,000 of annual passive income.

Betashares Global Royalties ETF (ASX: ROYL)

Another ASX ETF that could be used for passive income is the Betashares Global Royalties ETF.

This fund provides exposure to global companies that earn royalties from assets such as commodities, intellectual property, infrastructure, and other long-life revenue streams.

Royalty businesses can be attractive because they often receive income linked to the use or production of an asset without carrying the same operating burden as the companies running those assets directly.

Its holdings include companies such as Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

Based on its current dividend yield of 5.6%, an investor would need to invest approximately $215,000 to generate $12,000 of annual passive income.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A third ASX ETF that may appeal to income-focused investors is the Betashares S&P 500 Yield Maximiser Complex ETF.

This fund provides exposure to the US share market while using an options strategy to help generate income. This means its distributions are not driven only by dividends from the underlying shares. A key part of the income comes from option premiums generated by selling call options.

Its underlying exposure includes major US shares such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).

This strategy can produce higher income than a standard S&P 500 ETF, though it may also limit some upside if markets rise strongly.

Based on its current dividend yield of 5.7%, an investor would need to invest approximately $210,000 to generate $12,000 of annual passive income.

The post How to make $12,000 of passive income from these ASX ETFs appeared first on The Motley Fool Australia.

Rather than relying on a handful of dividend-paying ASX stocks, many investors use exchange traded funds (ETFs) to access a broader pool of income-generating companies.

This can help smooth out returns and reduce the impact of any single company cutting its payout.

Here are two ASX ETFs that offer different approaches to generating income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF for income investors to look at is the Vanguard Australian Shares High Yield ETF.

This popular fund focuses on Australian shares with higher forecast dividend yields. It provides exposure across sectors, while applying limits to reduce concentration in any single industry or company.

Its holdings include shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS).

Commonwealth Bank highlights the type of income this ETF targets. As Australia's largest bank, it has a long history of paying dividends and benefits from a dominant position in the domestic market.

By combining multiple high-yielding companies in one portfolio, this fund offers a diversified source of income that can be easier to manage than holding individual shares.

At present, the Vanguard Australian Shares High Yield ETF offers an attractive trailing dividend yield of 4.15%.

BetaShares Global Royalties ETF (ASX: ROYL)

Another ASX ETF worth considering for a passive income portfolio is the BetaShares Global Royalties ETF.

This fund takes a different approach by focusing on companies that earn revenue through royalties rather than traditional operations.

Because royalty-based businesses often have lower capital requirements, they are able to return more of their earnings to shareholders than other companies.

The BetaShares Global Royalties ETF's holdings currently include companies such as Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

Franco-Nevada provides a useful example of the type of holding you will get with this fund. It earns royalties from mining operations, giving it exposure to commodity production without the same level of operational risk as miners themselves. This can support more stable cash flows over time.

The BetaShares Global Royalties ETF currently trades with a generous trailing dividend yield of 5.4%.

The post The best ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

The good news is that ASX exchange traded funds (ETFs) can be a simple and effective way to do this. Some provide diversification, regular distributions, and exposure to income-producing assets without the need to pick individual stocks.

With that in mind, here are three ASX ETFs that could be excellent options for income-focused investors.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF that income investors may want to consider is the Vanguard Australian Shares High Yield ETF.

This fund focuses on high-dividend-paying ASX shares, many of which are household names. It typically includes exposure to major banks like Westpac Banking Corporation (ASX: WBC), miners like BHP Group Ltd (ASX: BHP), and other established businesses with strong cash flows.

One of the key attractions of the fund is its income potential. The Australian market is well known for its generous dividends, and this ETF captures that effectively.

On top of this, many of the dividends are fully franked, which can enhance after-tax returns for local investors.

While there will still be some volatility, the Vanguard Australian Shares High Yield ETF offers a straightforward way to build a core income position with exposure to reliable dividend payers.

BetaShares Global Royalties ETF (ASX: ROYL)

Another ASX ETF that could be worth considering is the BetaShares Global Royalties ETF.

This fund takes a very different approach to income. Instead of relying on traditional dividends, it invests in companies that earn royalties.

These businesses generate revenue by taking a percentage of sales from assets such as natural resources, intellectual property, and infrastructure. This can lead to highly predictable and scalable income streams.

Because royalty companies often have lower operating costs and limited capital requirements, a larger portion of their revenue can be returned to investors.

This makes the BetaShares Global Royalties ETF an interesting option for those looking to diversify their income sources beyond traditional sectors like banks and utilities.

It was recently recommended by an analyst, as we covered here.

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

A third ASX ETF that income investors could consider is the BetaShares S&P Australian Shares High Yield ETF.

This fund focuses on Australian companies with high dividend yields, providing exposure to a broad range of income-generating businesses across the local market.

This includes sectors such as financials, resources, and industrials, which have historically been strong dividend payers.

What makes the BetaShares S&P Australian Shares High Yield ETF appealing is its focus on maximising yield while maintaining diversification. It complements the Vanguard Australian Shares High Yield ETF by offering an alternative approach to capturing income from the Australian share market.

For investors seeking to build a portfolio centred on dividends, this ASX ETF could play an important supporting role.

This fund was recently recommended by analysts at BetaShares.

The post 3 excellent ASX ETFs for income investors to buy appeared first on The Motley Fool Australia.

Let's see, courtesy of The Bull, if it rates them as buys, holds, or sells:

Betashares Global Royalties ETF (ASX: ROYL)

The wealth advisory firm thinks this ETF could be a buy this week.

It highlights its strong track record since inception and its attractive and predictable income as reasons to consider the fund. It said:

This exchange traded fund focuses on global companies earning royalty and intellectual property income. The benefit from companies producing royalty income is the predictable nature derived from holding the underlying investments. Sector exposure at February 27, 2026 included gold, oil, gas, pharmaceuticals and semiconductors.

Geographical exposure includes the US, Canada and Brazil. Since its inception in September 2022, the fund had returned 19.77 per cent per annum as of March 31, 2026. ROYL can be considered a solid inclusion in a balanced portfolio.

iShares MSCI Emerging Markets AUD ETF (ASX: IEM)

DP Wealth Advisory has named this emerging market fund as a hold this week.

While it is positive on what it offers investors, it isn't enough for a buy rating. It commented:

This exchange traded fund provides exposure to big and mid sized companies in emerging markets. Geographical exposure includes China, India and South Korea, among others.

The average annual total return over three years was 15.30 per cent as of March 31, 2026. A benefit of the ETF is providing exposure to companies and economies that some would find difficult to source as an individual investor.

Betashares Global Cybersecurity ETF (ASX: HACK)

This cybersecurity focused ASX ETF has been named as a sell by DP Wealth Advisory.

While the fund has been a strong performer in recent years, it thinks investors may be better avoiding it while AI disruption concerns weigh on software stocks. It explains:

This exchange traded fund tracks the Nasdaq Cyber Security Index and provides investors with exposure to the rapidly growing and ever evolving cyber security theme. Names held within the ETF included CrowdStrike Holdings, Palo Alto Networks and Cisco Systems as at April 8, 2026.

After performing strongly for the past five years, this ETF, along with other software focused investments, have been under pressure due to fears artificial intelligence large language models (LLM) could significantly disrupt software-as-a-service (SaaS) businesses. While these concerns may be over done, it's safer to take profits and avoid the SaaS sector until more certainty emerges.

The post Expert names 1 ASX ETF to buy, 1 to hold, and 1 to sell appeared first on The Motley Fool Australia.

According to a new report from Betashares, after years of low inflation, the environment investors have become accustomed to is starting to shift.

Hans Lee, Senior Finance Writer at Betashares, said for most of the past two decades, inflation was low enough that many investors didn't need to think about it. But that backdrop may now be shifting.

Treasury modelling flagged this month that the Iran conflict could push inflation to 5% or above. Both the RBA and the Federal Reserve have revised their inflation forecasts higher this year, with the RBA now expecting inflation to remain above its 2-3% target until early 2027.

How is inflation measured?

One way we measure this metric is using the The Consumer Price Index (CPI). 

It measures household inflation and includes statistics about price change for categories of household expenditure.

The most recent data shows CPI annual inflation was 3.7% in the 12 months to February 2026. 

This is above the Reserve Bank of Australia's goal range of between 2-3%. 

How does it impact investors

Inflation can eat away at returns more than many investors realise. 

For example, if your portfolio gains 6% but inflation runs at 4%, your real return is only about 2%. Investors must beat inflation just to preserve wealth.

According to Betashares, this is also extremely relevant for investors approaching retirement. 

A higher assumed rate of inflation may also move the goalposts on your FIRE number retirement target. That nominal $1 million figure would now be $1 million plus the rate of inflation meaning the number you need to reach keeps rising, which means the return your portfolio needs to deliver rises with it.

Where to invest in a high inflation environment

According to the report from Betashares, for investors looking to add inflation resilience to an existing portfolio, there are particular assets that may help.

Firstly, there is historical evidence that gold has been able to preserve most of its purchasing power through inflationary periods when paper assets have struggled.

Gold focussed ASX ETFs include: 

• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)
• Vaneck Gold Bullion ETF (ASX: NUGG)

Another asset class to consider according to Betashares is royalty companies. 

These are businesses that own royalty streams on commodities or other assets, collecting a percentage of revenue rather than bearing production costs. 

That structure may be less exposed to rising input costs, although performance will depend on commodity prices and other factors.

For exposure to royalty companies, investors may consider Betashares Global Royalties ETF (ASX: ROYL). 

Finally, listed infrastructure often have revenues that are linked (to varying degrees) to inflation through regulated pricing or contractual arrangements. 

However, the extent of this linkage and its impact on income may vary.

An ASX ETF that provides exposure to this sector is FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL). 

The post Where to invest if inflation keeps rising – Expert appeared first on The Motley Fool Australia.

Rather than relying on a single dividend-paying share, ETFs provide exposure to a basket of income-generating businesses in one investment. This diversification can make income streams more stable and easier to manage over time.

With that in mind, here are three ASX ETFs that could be worth considering for passive income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF that income investors may want to look at is the Vanguard Australian Shares High Yield ETF.

This fund focuses on Australian shares that are expected to pay above-average dividend yields. It holds a diversified portfolio of large and mid-sized ASX shares that have strong income profiles.

Its holdings include well-known dividend payers such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS).

Because many Australian shares pay fully franked dividends, investors can also benefit from franking credits, which can enhance the effective income received.

For investors seeking exposure to a broad collection of local dividend stocks in one trade, the Vanguard Australian Shares High Yield ETF offers a straightforward solution. It currently provides a 4% dividend yield.

Betashares S&P 500 Yield Maximiser ETF (ASX: UMAX)

Another ASX ETF that could appeal to income investors is the Betashares S&P 500 Yield Maximiser ETF.

This fund takes a different approach to generating income. Instead of relying solely on dividends from its holdings, it uses a covered call strategy to boost the income paid to investors.

It holds companies from Wall Street's S&P 500 index, which means investors gain exposure to global giants such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN).

However, by writing call options over these holdings, the ETF collects option premiums that can then be distributed as income. This strategy can lead to higher yields than traditional equity ETFs, though it may limit some upside during strong market rallies.

Another positive is that Betashares changed the payouts from quarterly to monthly this year, meaning more frequent income for investors.

At present, it trades with a dividend yield of 5.7%.

Betashares Global Royalties ETF (ASX: ROYL)

A final ASX ETF that could be worth considering for passive income is the Betashares Global Royalties ETF.

This fund invests in companies that earn revenue from royalties rather than traditional product sales. These businesses often receive payments from intellectual property, natural resources, or infrastructure rights.

The portfolio includes companies such as Franco-Nevada (NYSE: FNV), which collects royalties from gold mining operations, and InterDigital (NASDAQ: IDCC), which earns licensing income from wireless technology patents.

Royalty-based businesses can be appealing because they often have lower operating costs and scalable revenue models. As the underlying industries grow, royalty payments can increase without requiring large capital investments.

This structure can support attractive income streams for investors. For example, it currently offers a 5.6% dividend yield.

The Betashares Global Royalties ETF was recently recommended by analysts at Betashares.

The post Buy these top ASX ETFs for passive income appeared first on The Motley Fool Australia.

For many people, exchange traded funds (ETFs) offer a simpler and more diversified way to build income over time. By holding a basket of dividend-paying companies or income-generating assets, ETFs can provide regular cash flow while reducing reliance on any single business.

Why ETFs work well for passive income

One of the biggest advantages of ETFs is diversification.

Instead of depending on one ASX share to keep paying dividends, an income ETF spreads that risk across many holdings. If one company cuts its payout, others can help offset the impact. This can make income streams more resilient, especially during periods of economic uncertainty.

ETFs are also low maintenance. Once purchased, they require very little ongoing management from the investor, which suits those looking to build income without constantly adjusting their portfolio.

Australian dividend ETFs

Australia's share market is well known for its dividend culture, and several ETFs are designed to capture this.

Funds such as the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the Betashares S&P Australian Shares High Yield ETF (ASX: HYLD) focus on shares offering above-average yields.

These ETFs typically hold banks, miners, and large industrial companies that generate strong cash flows and regularly return capital to shareholders. In many cases, distributions also come with franking credits, which can boost after-tax income for Australian investors.

Global income through ETFs

Passive income doesn't have to come only from Australia. Some ETFs provide access to global income streams that behave differently to local dividends.

The Betashares Global Royalties ETF (ASX: ROYL), for example, invests in stocks that earn royalties from intellectual property, natural resources, and infrastructure-like assets.

Because royalties are often paid regardless of who operates the underlying asset, this can result in relatively stable cash flows that are less tied to traditional economic cycles.

Combining income with long-term growth

Many investors make the mistake of chasing yield too early.

Instead, a common approach is to pair income ETFs with growth-focused investments. ETFs such as the Vanguard MSCI International Shares ETF (ASX: VGS) or the Betashares Nasdaq 100 ETF (ASX: NDQ) may offer lower yields today, but can help grow the portfolio over time.

As the portfolio grows, investors can gradually tilt more toward income-focused ETFs, allowing dividends to become a larger part of total returns.

Foolish takeaway

ETFs can be powerful tools for building passive income.

By offering diversification, simplicity, and access to both local and global income sources, they allow investors to construct income portfolios without excessive complexity. Whether used on their own or alongside growth assets, ETFs can help turn investing into a steady and scalable source of passive income over the long term.

The post How ETFs can help investors build significant passive income appeared first on The Motley Fool Australia.

For many investors, exchange traded funds (ETFs) can provide a simpler way to access diversified income streams, with regular distributions and less reliance on the fortunes of any single company.

As we head through 2026, there are several ASX ETFs that stand out for income-focused investors. Here are three that could be worth considering for passive income this year.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to consider for passive income is the Vanguard Australian Shares High Yield ETF.

This ETF focuses on Australian shares with above-average dividend yields. Its portfolio is tilted toward banks, miners, and other mature businesses that generate strong cash flows and regularly return capital to shareholders.

Holdings include companies such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS). These businesses are not immune to cycles, but they have long histories of paying dividends.

This ultimately means that the Vanguard Australian Shares High Yield ETF offers a straightforward way to access the Australian market's dividend culture, with the added benefit of franking credits boosting after-tax returns for many investors.

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

Another ASX ETF that could suit passive income investors is the Betashares S&P Australian Shares High Yield ETF.

This fund also targets high-yield Australian shares, but it takes a slightly different approach. It seeks to improve on traditional high-dividend strategies by aiming to screen out potential dividend traps.

This includes excluding shares that are projected to pay unsustainably high dividend yields, as well as companies that exhibit high levels of volatility relative to their forecast dividend payout.

The ASX ETF includes holdings such as Woodside Energy Group Ltd (ASX: WDS), Fortescue Ltd (ASX: FMG), and Suncorp Group Ltd (ASX: SUN).

It currently trades with an annualised dividend yield of 4.4% and was recently recommended by analysts at Betashares.

Betashares Global Royalties ETF (ASX: ROYL)

A final ASX ETF to consider for passive income in 2026 is the Betashares Global Royalties ETF.

This fund provides exposure to global shares that earn royalties from intellectual property, natural resources, and infrastructure-like assets. This includes businesses involved in music royalties, energy royalties, and specialised licensing arrangements.

Holdings include companies such as Franco-Nevada (NYSE: FNV) and Universal Music Group. These businesses often generate relatively stable cash flows because royalties are earned regardless of who operates the underlying asset.

At present, it trades with a 5.6% trailing dividend yield. It was also recently recommended to income investors by Betashares.

The post 3 ASX ETFs for passive income in 2026 appeared first on The Motley Fool Australia.

ASX exchange trade funds (ETFs) make it possible to access diversified income streams in a simple, low-maintenance way. By combining different income styles, investors can spread risk while still targeting regular payouts over time.

Here are five ASX ETFs that could be worth considering for passive income investors.

Vanguard Australian Shares Index ETF (ASX: VAS)

The first ETF to consider is the Vanguard Australian Shares Index ETF. While it is not designed specifically for income, this ASX ETF provides exposure to the broad Australian share market, which has historically been one of the more generous dividend markets globally. Banks, miners, and industrials all contribute to a steady stream of distributions, often with franking credits attached.

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

Another ASX ETF to look at is the Betashares S&P Australian Shares High Yield ETF. It focuses on higher-yielding Australian shares, using a rules-based approach to tilt the portfolio toward companies paying above-average dividends. It offers a more income-focused alternative to broad market ETFs. It was recently recommended by analysts at Betashares.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A different style of passive income comes from the Betashares S&P 500 Yield Maximiser Complex ETF. Rather than relying purely on dividends, this clever fund uses an options-based strategy over the S&P 500 to generate income. This can result in higher cash distributions than you would expect, but it also means capital growth may be more limited compared to traditional equity ETFs.

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF offers an unconventional source of passive income. The ASX ETF invests in global stocks that earn royalties from assets such as music, energy infrastructure, and intellectual property. These revenue streams are often contract-based and less sensitive to economic cycles. For income investors, the Betashares Global Royalties ETF can provide diversification away from traditional dividend sectors like banks and resources. It was also recently recommended by analysts at Betashares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final ASX ETF to consider is the popular Vanguard Australian Shares High Yield ETF. It concentrates on Australian shares with higher forecast dividend yields, offering an income-focused alternative to the Vanguard Australian Shares Index ETF. But it does this with diversification in mind, limiting how much is invested in individual shares and sectors.

The post 5 ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

Most investors who buy individual ASX stocks have beating 'the market', represented by an ASX 200 index fund, as one of their goals. But this is easier said than done. Even professional investors can struggle to outperform the ASX 200 over long stretches of time.

But there might be a shortcut that investors wanting the best returns can exploit. So today, let's look at two ASX ETFs that have historically delivered returns that have well-exceeded the Australian share market.

For some context, the iShares Core S&P/ASX 200 ETF (ASX: IOZ), the largest ASX 200 index fund on the ASX, returned 10.36% over the 12 months to 31 December 2025 (including dividend distributions). It has averaged 11.31% per annum over the past three years, 9.83% per annum over the past five, and 9.2% over the past ten.

2 market-beating ASX ETFs to consider

First up, we have the BetaShares Global Cash Flow Kings ETF (ASX: CFLO). This fund holds a portfolio of global companies that are selected based on levels of free cash flow that they consistently generate. These stocks, according to the provider, "have historically tended to outperform broad global equity benchmarks over the medium to long term".

Some of CFLO's current holdings include Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Costco Wholesale Corp (NASDAQ: COST), Visa Inc (NYSE: V) and Johnson and Johnson (NYSE: JNJ).

This ETF has only been around since November 2023. However, the index that it tracks has been around a lot longer, meaning we can still analyse its performance against the ASX 200. Over the three years to 31 December, this index has returned an average of 10.14% per annum, extending 0 14.68% per annum over the past five years, and 13.61% over ten. Those metrics handily beat out the Australian share market.

Next, let's check out the BetaShares Global Royalties ETF (ASX: ROYL). This is a rather unique ASX ETF in that it holds a portfolio of global companies that earn a substantial portion of their revenues from royalty payments. Depending on the stock, those royalties could come from mines, intellectual property like music streaming, or financial deals.

Some of ROYL's current largest holdings include Wheaton Precious Metals Corp (NYSE: WPM), Texas Pacific Land Corp (NYSE: TPL)  and Universal Music Group N.V.

This ASX ETF has returned an average of 15.38% over the three years to 31 December 2025. The index that it tracks has delivered a return of 19.81% per annum over the past five years, making it another ASX 200 market beater.

The post Want to beat the market? Try these 2 ASX ETFs appeared first on The Motley Fool Australia.

They help by spreading income exposure across dozens or even hundreds of underlying assets, reducing reliance on any single company.

But which funds could be worth considering for passive income? Let's take a look at four top options. They are as follows:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is one of the most straightforward income ETFs on the ASX.

It invests in Australian shares with above-average dividend yields, drawing heavily from sectors such as banks, resources, and consumer staples. That means income is supported by businesses that are already significant dividend payers rather than speculative cash flows.

This provides exposure to franked dividends and spreads risk across many of the ASX's major income contributors, making it a potential core holding for Australian-focused income portfolios.

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

Another ASX ETF to look at is the Betashares S&P/ASX Australian Shares High Yield ETF.

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

Among its holdings are the big four banks, Australia's largest miners, and the country's leading retailers.

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF is the third ASX ETF to look at for passive income.

This fund invests in shares that earn royalties from assets such as intellectual property, music, energy infrastructure, and natural resources. These royalty models often produce recurring revenue without the need for heavy ongoing capital investment.

For income investors, this ETF provides diversification away from traditional dividends. Its cash flows are linked to usage and production rather than company profits alone. This can help smooth income across cycles and add a different dimension to a passive income portfolio.

Betashares S&P 500 Yield Maximiser ETF (ASX: UMAX)

Finally, the Betashares S&P 500 Yield Maximiser ETF generates income in a very different way.

Rather than relying purely on dividends, the ETF uses a covered call strategy over US equities to generate option premium income. This can result in relatively high and regular distributions, even when underlying markets are moving sideways.

The trade-off is that upside is capped in strong market rallies. However, for investors prioritising income over capital growth, this fund can provide an additional income stream that behaves differently from traditional dividend ETFs.

The post These ASX ETFs could be top passive income picks appeared first on The Motley Fool Australia.

For many investors, exchange-traded funds (ETFs) offer a simple and diversified way to build an income stream over time.

ASX income ETFs provide exposure to dozens, or even hundreds, of businesses in a single investment, helping smooth volatility while still delivering regular distributions.

Here are three ASX ETFs that could be worth considering for a passive income portfolio.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is one of the most widely used income-focused ETFs on the ASX.

It invests in Australian shares with higher-than-average forecast dividend yields, based on broker research. This naturally results in a portfolio dominated by established, cash-generative blue-chip businesses.

Key holdings typically include companies such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and Telstra Group Ltd (ASX: TLS). These businesses have long histories of paying dividends and tend to form the backbone of many income portfolios.

For investors seeking franked income and exposure to Australia's biggest dividend payers, the Vanguard Australian Shares High Yield ETF could be a top choice.

Betashares Global Royalties ETF (ASX: ROYL)

Another ASX ETF to look at is the Betashares Global Royalties ETF. It offers a very different approach to income investing.

Rather than relying on traditional dividend-paying shares, this ASX ETF invests in businesses that earn revenue from royalties. These royalties are typically paid for the use of intellectual property, natural resources, or technology, providing a distinct and often more resilient income stream.

The fund's holdings include stocks such as ARM Holdings (NASDAQ: ARM), Wheaton Precious Metals (NYSE: WPM), and Universal Music Group. Many of these businesses benefit from long-term contracts and structural growth trends, rather than short-term economic cycles.

The Betashares Global Royalties ETF could be particularly appealing for investors looking to diversify their income sources beyond banks, miners, and property stocks. It was recently recommended by analysts at Betashares.

Betashares Australian Quality ETF (ASX: AQLT)

Finally, while not designed as a pure income fund, the Betashares Australian Quality ETF can still play an important role in a passive income strategy.

This ASX ETF focuses on high-quality Australian shares with strong balance sheets, sustainable earnings, and attractive profitability metrics. These characteristics often support reliable dividends that can grow steadily over time.

Its holdings include popular shares such as Macquarie Group Ltd (ASX: MQG), CSL Ltd (ASX: CSL), and Woolworths Group Ltd (ASX: WOW). While its dividend yield may be lower than high-yield ETFs initially (3.4% at present), its emphasis on quality can help grow income over the long term.

For investors who want to balance passive income with capital preservation and growth, the Betashares Australian Quality ETF could be a valuable complement to higher-yield funds. It was also recently recommended by analysts at Betashares.

The post 3 strong ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

But if you don't fancy stock-picking, don't worry. That's because ETFs make things simple.

In one trade you gain exposure to lots of dividend-paying shares and in some cases, access to unique sources of income that you won't find in traditional Australian portfolios.

As we head into December, here are three ASX ETFs that stand out for income-focused investors.

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF could be worth considering. Rather than relying on banks, miners, or property trusts, this ASX ETF targets shares that generate revenue from royalties. This is a model that often provides stable, recurring cash flows.

This includes businesses like ARM Holdings (NASDAQ: ARM), with its licensing-based chip architecture, Wheaton Precious Metals (NYSE: WPM), which receives royalties from global mining operations, and Universal Music Group (AMS: UMG), which earns from music catalogues and streaming rights.

At present, this fund trades with a trailing dividend yield of 5.2%. Betashares recently highlighted it as an attractive option for income-seeking investors.

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

The Betashares S&P Australian Shares High Yield ETF focuses on 50 high-yielding ASX shares that are selected using dividend forecasts rather than backward-looking payouts. This helps avoid some of the classic dividend traps and keeps the portfolio geared toward sustainable income.

Among its largest holdings are the likes of big four banks Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB), miner BHP Group Ltd (ASX: BHP), and retail powerhouse Wesfarmers Ltd (ASX: WES). These companies form the backbone of Australia's dividend landscape.

The Betashares S&P Australian Shares High Yield ETF currently offers a forward yield of approximately 4.7%, making it an appealing option for investors who want diversified income without overcomplicating their portfolio.

Betashares also recently flagged this ASX ETF as a top choice for income-focused investors this month.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, the Vanguard Australian Shares High Yield ETF could be a top ASX ETF for income investors.

It tracks a basket of shares with the highest forecast dividend yields based on broker expectations, giving investors exposure to some of Australia's best dividend payers.

Its top holdings currently include BHP, Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS). These blue-chip names have long histories of delivering fully franked dividends, even during challenging market conditions.

This fund currently trades with a 4.2% dividend yield.

The post 3 excellent ASX ETFs for income investors to buy in December appeared first on The Motley Fool Australia.

Never fear, there is a simple way, via entities listed on the ASX, that you can buy into the strong performance of our resources winners without the risk and complexity of picking your own shares to buy.

One method is by buying exchange traded funds (ETFs), which aim to track the performance of a basket of shares, and another way is by not investing in the companies themselves, but in the royalty streams they generate.

Gold ETF a winner

If you're keen on tracking the performance of mining companies themselves, one option is the Betashares global gold miners ETF (ASX: MNRS) ETF.

This particular ETF aims to track an index of the world's largest gold mining companies, and if you've been paying attention to the gold price over the past year, you'd assume correctly that an investment in this vehicle has paid off handsomely.

While a hiccup in the price of gold's seemingly inevitable march higher has meant MNRS has fallen 5.8% over the past month, looking further back, it's delivered a whopping 82.5% over the past year and a compound 15.6% over the past five years.

Some of the major holdings in the MNRS ETF include Barrick Gold Corp at 9.1%, Newmont Corporation (ASX: NEM) at 7.4%, and Agnico Eagle Mines also at 7.4%.

A slightly different vehicle is Betashares Global Royalty ETF (ASX: ROYL), which tracks the royalty streams generated by not only resources companies, but also companies with strong intellectual property holdings, and royalty financing arrangements.

While ROYL's largest holding is in Wheaton Precious Metals Corp, its second largest holding is in Universal Music Group, and it also holds a stake in Royalty Pharma Plc.

ROYL would be useful for investors seeking a regular income stream, as it pays out a distribution each month.

The fund's performance over the past year has been 25.8%, while looking further back, it has delivered compound annual growth of 21.1% over five years.

More mining royalty streams

And lastly there is Deterra Royalties Ltd (ASX: DRR), which holds the rights to a number of royalty streams in sectors such as iron ore, gold, and lithium.

The company says its benefit lies in gaining direct exposure to commodity price upside, without the risk associated with project development or operating cost issues.

At the end of FY25, the company held 28 royalties and "royalty-like assets" across 11 countries and six commodities, according to its annual report.

The report goes on to say:

With revenue-producing assets, and investments in projects across the development cycle, Deterra couples strong, consistent revenue streams with significant near, medium and long-term optionality.

Deterra's total shareholder return over the past year has been 7.4%, while over a five year period, it has been 2.2%, according to data sourced from CMC Markets.

Currently, it is offering a fully-franked dividend yield of 5.77%, according to the ASX website.   

The post How to take the guesswork out of getting exposure to the mining sector appeared first on The Motley Fool Australia.

But which ones could be buys?

Here are three ASX ETFs that could help investors generate reliable passive income, not just for today, but for decades to come.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If your goal is dependable dividends, the Vanguard Australian Shares High Yield ETF is one of the strongest options on the ASX.

This ASX ETF invests in a basket of Australian shares with above-average dividend yields, many of which have a long history of rewarding shareholders through fully franked distributions. Its portfolio includes household names such as BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS).

The Vanguard Australian Shares High Yield ETF's appeal lies in its simplicity. It is designed for income seekers who want consistent cash flow and broad diversification across sectors like banking, mining, and telecommunications. And while its dividends can fluctuate year to year, the fund's diversified nature helps smooth out returns over time. It currently boasts a 4.4% dividend yield.

Vanguard Australian Shares Index ETF (ASX: VAS)

Another option for passive income is the Vanguard Australian Shares Index ETF,

It tracks the ASX 300 Index, which includes the largest and most established Australian shares.

That means you get exposure to giants such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and ResMed Inc. (ASX: RMD), all of which have proven track records of growing earnings and dividends over the long term.

While its dividend yield is lower than what is on offer with the Vanguard Australian Shares High Yield ETF, it offers greater diversification and steadier long-term growth. It is the kind of fund you could buy, hold, and rely on for the rest of your life.

It currently trades with a 3.1% dividend yield.

Betashares Global Royalties ETF (ASX: ROYL)

Finally, for something a little different, there is the Betashares Global Royalties ETF. It gives investors access to shares benefiting from intellectual property and royalties-based income streams.

This ASX ETF invests in businesses that earn recurring revenue from assets such as music rights, patents, mining royalties, and brand licensing. Its portfolio includes names like Warner Music Group (NASDAQ: WMG), Royal Gold (NASDAQ: RGLD), and Arm Holdings (NASDAQ: ARM).

These companies don't just sell products once, they collect ongoing income every time their intellectual property is used, streamed, or extracted. That means predictable cash flow and strong margins, even in slower economic conditions.

It currently trades with a 4.4% dividend yield and was recently recommended by analysts at Betashares.

The post 3 excellent ASX ETFs to buy for lifelong passive income appeared first on The Motley Fool Australia.

Typically, investors see their portfolio rise in value thanks to dividends from company profits or capital gains from share price appreciation. 

These depend on the company's operations, costs, and market conditions.

However, the Betashares Global Royalties ETF (ASX: ROYL) uses a different focus. 

Royalties 

According to Betashares, the ROYL ASX ETF aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of global companies that earn a substantial portion of their revenue from royalty income, royalty-related income, and intellectual property (IP) income.

Royalties are payments made to asset owners for the right to use those assets. 

Originally tied to land and natural resources, royalties have evolved to encompass a wide range of assets, including music, pharmaceuticals, technology, and other intellectual property.

The unique business model underpinning royalty companies has historically resulted in them having low correlation to the broader Australian and global sharemarket, providing potential portfolio diversification benefits.

Examples of royalties:

• Mining and energy: Companies sell royalty interests in future production of resources like oil, gas, precious metals, and minerals.
• Intellectual Property (IP): Creators earn royalties from licensing IP rights in industries including music, biotech, and technology.
• Royalty financing and streaming: Businesses provide upfront capital in exchange for a share of future revenues.

Has it been profitable?

While it's all well and good to use different strategies to build an ASX ETF, the bottom line is the fund needs to rise. 

This ASX ETF has done just that.

Since its inception in 2022, the fund has risen more than 67%. 

This includes more than 24% YTD. 

This ASX ETF has exposure to several sectors that have risen significantly in that time, such as: 

• Gold (36.7% weighting)
• Biotechnology (13.3% weighting)
• Oil & Gas Exploration & Production (13.0% weighting)
• Movies & Entertainment (11.0% weighting)
• Semiconductors (10.3% weighting)

At the time of writing, it is made up of 35 holdings. 

Its largest exposure by company is: 

• Arm Holdings (NASDAQ: ARM): 12.2%
• Wheaton Precious Metals Corp (NYSE: WPM): 11.3%
• Franco-Nevada (NYSE: FNV): 10.8%

The post Have you considered exposure to royalty income for your ASX ETF portfolio? appeared first on The Motley Fool Australia.

The good news is that the ASX is one of the best markets in the world for doing just that, thanks to its dividend culture and the benefits of franking credits.

So, how can a $100,000 ASX share portfolio be converted into passive income? Here are three steps to take:

Step 1: Decide on a target

The first step is to work out what sort of income you want to generate. At an average dividend yield of around 5%, which is achievable with a mix of quality dividend shares and ETFs, a $100,000 portfolio could deliver about $5,000 a year.

That's roughly $416 per month in passive income, without touching your capital.

Step 2: Build your portfolio

While chasing high yields might be tempting, the real key to sustainable passive income is diversification. That means blending individual dividend stocks with ETFs designed for income.

Quality ASX dividend shares like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), and Coles Group Ltd (ASX: COL) would be worth considering. These are established businesses with reliable cash flows and growing dividends.

In addition, funds like the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the Betashares Global Royalties ETF (ASX: ROYL) spread your money across dozens of income-producing ASX shares, reducing the risk of relying on just a few names.

With these types of ETFs, investors also gain access to sectors and geographies they might otherwise miss — from Australian banks and miners to global royalty businesses in music, energy, and technology.

Step 3: Grow your passive income

A common misconception is that passive income stays flat. In reality, quality ASX shares increase their dividends as their profits rise, and ETFs naturally capture that growth through their holdings.

If your $100,000 portfolio grows at around 5% per year in capital value, while also paying a 5% yield, the income can rise steadily. In 10 years, your portfolio might be worth around $163,000, and the income closer to $8,150 annually. That's a big lift without adding a cent of new money.

Foolish takeaway

Turning a $100,000 ASX share portfolio into passive income is about more than just buying the highest yields. By focusing on quality ASX shares, diversifying with income-focused ETFs, and giving your investments time to grow, it is possible to build an income stream that not only pays today but grows every year into the future.

The post How to turn a $100,000 ASX share portfolio into a passive income machine appeared first on The Motley Fool Australia.

Exchange-traded funds (ETFs) can be a particularly attractive option because they deliver diversification, regular distributions, and access to high-yielding companies — all in one simple trade.

Here are three ASX-listed ETFs that stand out for income seekers right now.

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF is one of the more unique income plays on the ASX. Rather than relying on traditional dividend shares, it invests in stocks that earn revenue from royalties — payments made for the right to use intellectual property, natural resources, or technology.

That means exposure to businesses such as ARM Holdings (NASDAQ: ARM), a global leader in chip design, Wheaton Precious Metals Corp (NYSE: WPM), which earns royalties from mining projects, and Universal Music Group, the powerhouse behind some of the world's most valuable music rights.

With a trailing dividend yield of 4.3%, the Betashares Global Royalties ETF offers investors a differentiated way to generate income while diversifying beyond traditional sectors. It was recently named as one for income investors to consider by the team at Betashares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is a popular option and has become a staple for income-focused investors in recent years. It tracks a basket of the ASX's highest forecast dividend yields (based on broker research) and has a current trailing yield of 4.6%.

Its top holdings currently include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS). These blue-chip companies generate steady cash flows and have long histories of returning profits to shareholders. For investors who want reliable dividends from Australia's largest companies, the Vanguard Australian Shares High Yield ETF remains one of the strongest options.

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

The relatively new Betashares S&P Australian Shares High Yield ETF focuses on 50 ASX shares with high forecast dividend yields. With an estimated yield above 4%, it provides another strong source of passive income.

Its top holdings include Westpac, NAB, ANZ Group Holdings Ltd (ASX: ANZ), BHP, and Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES). By targeting higher yields while screening out potential dividend traps, the Betashares S&P Australian Shares High Yield ETF aims to deliver higher income than the broader market without taking on unnecessary risk. It was also recently named as one to consider buying by the team at Betashares.

The post 3 ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

Exchange-traded funds (ETFs) can be a simple way to build a diversified, income-focused portfolio without having to pick individual shares.

For example, here are three of the best ASX ETFs out there to help deliver steady passive income as we head into September.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF remains one of the most popular income ETFs on the ASX. And it isn't hard to see why.

This ASX ETF invests in a portfolio of large Australian shares with higher-than-average forecast dividend yields, while also screening to avoid unsustainable payouts.

The fund currently trades with a trailing dividend yield of 4.6%, paid quarterly. Its holdings include household names like BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS). For income-focused investors, the Vanguard Australian Shares High Yield ETF provides a diversified, low-cost way to tap into Australia's top dividend payers.

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

The Betashares S&P Australian Shares High Yield ETF could be worth considering. It is one of the newer income ETFs on the ASX.

The fund invests in 50 high-yielding Australian shares, while screening out potential dividend traps such as those with unsustainably high yields or excessive volatility.

It currently trades on a 12-month trailing yield of approximately 4.5%, with income distributed monthly.

Top holdings include National Australia Bank Ltd (ASX: NAB), Transurban Group (ASX: TCL), Treasury Wine Estates Ltd (ASX: TWE), and Wesfarmers Ltd (ASX: WES). For retirees and income-focused investors, the combination of monthly payouts and broad sector coverage makes the Betashares S&P Australian Shares High Yield ETF a particularly attractive option. Betashares recently named it as one to consider.

Betashares Global Royalties ETF (ASX: ROYL)

Royalties might not be the first thing that comes to mind for income investing, but that's exactly what the Betashares Global Royalties ETF focuses on.

It invests in global stocks that earn a large share of their revenue from royalties and intellectual property, across industries such as mining, music, technology, and healthcare.

Its top holdings include Wheaton Precious Metals (NYSE: WPM), Universal Music Group (AMS: UMG), and Royalty Pharma (NASDAQ: RPRX). With a trailing dividend yield of 3.9%, paid monthly, the Betashares Global Royalties ETF offers diversification away from traditional dividend sectors while still providing a steady stream of passive income.

The post The best ASX ETFs for passive income in September appeared first on The Motley Fool Australia.