That's exactly why I believe Australian investors should focus on a strategy that blends growth, resilience, and rising income.

For retirees who own their home, the latest ASFA Retirement Standard suggests a couple needs around $77,000 a year for a comfortable lifestyle, while singles need roughly $55,000.

That makes the final 10 years before retirement the ideal time to shape a portfolio designed to support that level of spending.

Local and global reach through ETFs

My preferred approach starts with broad ASX and global share ETFs as the portfolio's growth engine. A core holding in the Vanguard Australian Shares ETF (ASX: VAS) gives investors exposure to many of the market's best dividend-paying companies.

Adding an international ETF such as BetaShares Global Shares ETF (ASX: BGBL) helps diversify beyond the banks and miners that dominate the local market.

Together, these ETFs can still deliver the capital growth needed to keep pace with inflation over what could be a 25-year retirement.

Increase income, limit risk

But this is also the decade when income starts to matter more. That's why I like gradually introducing a high-yield ETF such as SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). The higher dividend stream, supported by franking credits, can help lift the portfolio's cash generation without relying entirely on selling units.

At the same time, reducing risk becomes critical. A major market sell-off just before retirement can permanently damage a drawdown plan, which is why I would steadily increase exposure to bond ETFs such as the Vanguard Australian Fixed Interest ETF (ASX: VAF).

Bonds may not deliver eye-catching returns, but they can provide stability and act as a valuable shock absorber when share markets turn volatile.

Blue chips for growth

I'd also reserve a smaller slice of the portfolio for a handful of elite ASX blue-chip shares. Names such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and CSL Ltd (ASX: CSL) can add a blend of dependable dividends and long-term earnings growth. These businesses have the scale and quality to remain core holdings well into retirement.

The real secret, though, is the glide path. Ten years out, I'd still lean heavily into shares. Five years from retirement, I'd be lifting bond and cash exposure. By retirement day, I'd want at least two years of living expenses sitting in cash or term deposits, ready to fund spending needs without touching shares in a downturn.

That combination of ASX ETFs, quality blue chips, bonds, and a cash buffer creates exactly what pre-retirees need most: a portfolio built not just to grow wealth, but to defend it when it matters most.

The post 10 years to retirement? Here's how to build a solid income appeared first on The Motley Fool Australia.

When markets turn turbulent, many investors panic. But history shows downturns often create some of the best long-term opportunities.

Instead of trying to time the market or pick individual winners, exchange-traded funds (ETFs) offer a straightforward way to stay invested while spreading risk.

For Australian investors, a few well-chosen ASX ETFs can help ride out the bumps and position a portfolio for recovery.

Vanguard Australian Shares Index ETF (ASX: VAS)

First up is this popular Vanguard ASX ETF. It tracks the S&P/ASX 300 Index (ASX: XKO), giving investors exposure to around 300 of Australia's largest companies in a single trade.

That diversification is powerful during market selloffs. Rather than relying on a handful of stocks, investors gain exposure across sectors like banking, mining, healthcare, and consumer goods. Major holdings include companies like BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL).

Low fees are another advantage. Over time, keeping costs down can significantly boost returns. And when markets recover, a broad ASX ETF like VAS lets investors fully participate in the rebound.

VanEck Morningstar Wide Moat ETF (ASX: MOAT).

If volatility raises concerns about quality, this ASX ETF focuses on companies with strong competitive advantages. The strategy is built around the idea of economic moats, a concept made famous by Warren Buffett.

MOAT invests in US-listed companies that have durable advantages and attractive valuations. The portfolio often includes global leaders such as Microsoft Corp. (NASDAQ: MSFT) and Visa Inc. (NYSE: V).

These businesses tend to have strong balance sheets, dominant positions, and resilient earnings. During market downturns, companies like these often hold up better and recover faster.

SPDR S&P/ASX 200 High Dividend ETF (ASX: SYI).

Finally, investors seeking income might consider this ASX ETF. Market volatility can be unsettling, but dividends can help smooth returns. This fund focuses on higher-yielding Australian companies that return cash to shareholders.

The ETF typically includes banks, resource companies, and other mature businesses with strong cash flow. Holdings often feature names like Westpac Banking Corp (ASX: WBC) and Telstra Group Ltd (ASX: TLS).

While share prices may swing, dividend income can continue flowing. That gives investors the option to reinvest at lower prices or use the income as a buffer.

Foolish Takeaway

The bottom line is that market volatility doesn't have to be a threat. For long-term investors, it can be an opportunity.

By combining broad market exposure like VAS, quality-focused strategies like MOAT, and income-generating ETFs like SYI, investors can build a portfolio designed not just to withstand volatility but potentially benefit from it.

The post 3 ASX ETFs to weather market turmoil appeared first on The Motley Fool Australia.

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

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

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

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

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

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

This can provide some relief when individual shares are falling. 

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

Vanguard Australian Shares High Yield ETF (ASX: VHY)

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

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

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

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

It has a management fee of 0.25% per annum.

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

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

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

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

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

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

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

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

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

The post Shift your focus to passive income with these dividend ASX ETFs appeared first on The Motley Fool Australia.

By reinvesting those dividends early and letting compounding do the heavy lifting, investors can gradually build a portfolio capable of funding their lifestyle years before the traditional retirement age.

Here are 3 ASX dividend ETFs that could help you achieve that goal.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This is the largest ASX dividend ETF on the Australian market and aims to track the FTSE Australia High Dividend Yield Index. It invests in around 70 Australian companies known for paying strong dividends. Major holdings include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS). 

The strength of this ASX ETF lies in its simplicity and scale. It focuses on large, established ASX companies with strong cash flows and consistent dividend histories. Many of these dividends come with valuable franking credits, which can boost after-tax income for Australian investors. The ETF also charges a relatively low management fee of around 0.25% per year. 

For investors targeting early retirement, VHY can form a solid income foundation. By reinvesting distributions over the years, investors can steadily grow their number of units and future income stream.

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

This fund screens the Australian market for companies with strong dividend yields and sustainable payouts. It holds around 40 to 60 companies and has one of the lowest management costs in the dividend ETF category at roughly 0.20%. The largest holdings are National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).

This ASX dividend ETF focuses on quality income. Instead of simply chasing the highest yield, it filters companies based on financial strength and dividend sustainability. That approach can help investors avoid so-called yield traps, where companies offer high dividends but struggle to maintain them.

For someone planning to retire at 57, that balance between yield and quality could prove valuable.

iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD)

This ASX dividend ETF holds around 50 high-yielding Australian companies and targets businesses with strong dividend profiles. Key holdings include BHP, Telstra, Rio Tinto Ltd (ASX: RIO), and Transurban Group (ASX: TCL). 

IHD provides exposure to many of the ASX's most reliable dividend payers while spreading risk across a broad group of companies. This diversification can help smooth income streams and reduce reliance on any single stock.

Foolish Takeaway

Sometimes, the path to early retirement doesn't require complex strategies. A simple portfolio of high-quality dividend ETFs, combined with patience and compounding, can do much of the heavy lifting.

The key advantage of combining these 3 ASX dividend ETFs is diversification. Instead of relying on just a handful of shares, investors gain exposure to dozens of dividend-paying companies across banks, miners, retailers, and infrastructure businesses. That diversification can help stabilise income even when certain sectors face challenges.

The post 3 ASX dividend ETFs that could help you retire at 57 appeared first on The Motley Fool Australia.

However, many of these dividend stocks have looked better as we survey them at the end of 2025. Some, perhaps Telstra and Westpac, are looking relatively expensive, and thus are offering dividend yields well below their historical averages right now. BHP and Woolies have their own issues, whether that be low commodity prices or minks in their business models that need ironing out.

That's why, if I had to choose an Australian dividend stock to invest in today, I'd probably go for something like the SPDR MSCI Australia Select High Dividend yield ETF (ASX: SYI).

This exchange-traded fund (ETF), like most ASX ETFs, holds a basket of underlying shares. In this case, those shares are all strong ASX dividend stocks with a history of providing relatively high yields to investors.

An ASX dividend stock with a 12.7% yield?

SYI contains all of the shares mentioned above, as well as Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS), QBE Insurance Group Ltd (ASX: QBE) and Coles Group Ltd (ASX: COL). All in all, this fund holds just under 60 ASX dividend stocks in a well-diversified income portfolio.

By investing in such a wide cross-section of the market, SYI can arguably offer the best income on the ASX has to offer, whilst diluting individual company risk.

Unlike most ASX dividend stocks, the SPDR Australia Select High Dividend Yield ETF pays out four dividend distributions annually. Over 2025, these quarterly payments added up to $3.72 per unit. At the current SYI unit price of $29.23, that translates to a trailing dividend distribution yield of 12.73%.

Now, before anyone rushes out to secure SYI units thinking they will enjoy a permanent 12.73% yield on their cash going forward, investors need to keep in mind that the dividend income from an ETF like this can fluctuate dramatically from year to year. The dividends received from this ETF's underlying holdings largely dictate what the fund itself can pay out. Not to mention the erratic profits that can stem from this ETF's periodic rebalancing.

To illustrate this inconsistency, SYI units only paid out $1.07 per unit over 2024, down significantly from that $3.72 enjoyed over 2025. Even so, if this were repeated in 2026, it would give this ASX ETF a yield of 3.66%.

Despite this unpredictable income stream, I think this Australian ETF would be a great investment for anyone who prioritises dividend income from their ASX shares today.

The post A top Australian dividend stock with a 12% yield to buy in December 2025 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.

Except for the SPDR S&P 500 ETF Trust (ASX: SPY), the ex-dividend date for the distributions listed below is today.

The payment date is 11 July.

Here are the details.

How much will SPDR ASX ETF investors get?

The SPDR S&P/ASX 200 ETF (ASX: STW) will pay 66.6712 cents in cash per unit. The ETF will also pay 13.5988 cents worth of franking credits and 0.2108 cents worth of foreign tax credits.

The SPDR S&P/ASX iBoxx Australian Government Bond ETF (ASX: GOVT) will pay 18.0410 cents in cash per unit.

The SPDR S&P/ASX 200 ESG ETF (ASX: E200) will pay 107.1402 cents in cash per unit, plus 5.0135 cents worth of franking credits and 0.0323 cents worth of foreign tax credits.

The SPDR S&P/ASX 50 ETF (ASX: SFY) will pay 64.0319 cents in cash per unit plus 13.2627 cents worth of franking credits.

The SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI) will pay 264.7328 cents in cash per unit. The ETF will also pay 7.8319 cents worth of franking credits and 0.0002 cents worth of foreign tax credits.

The SPDR S&P/ASX Small Ordinaries ETF (ASX: SSO) will pay 21.5897 cents in cash per unit, plus 6.9222 cents worth of franking credits and 0.1865 cents worth of foreign tax credits.

The SPDR S&P/ASX 200 Resources ETF (ASX: OZR) will pay 20.6316 cents in cash per unit, plus 8.0525 cents worth of franking credits and 0.03770 cents worth of foreign tax credits.

But wait, there's more!

The SPDR S&P/ASX 200 Listed Property ETF (ASX: SLF) will pay 31.5595 cents in cash per unit. The ETF will also pay 0.0144 cents worth of franking credits and 0.0475 cents worth of foreign tax credits.

The SPDR MSCI World Quality Mix ETF (ASX: QMIX) will pay 109.9871 cents in cash per unit, plus 0.5967 cents worth of franking credits and 6.4629 cents worth of foreign tax credits.

The SPDR S&P Global Dividend ETF (AUS) (ASX: WDIV) will pay 125.7777 cents in cash per unit, plus 0.0365 cents worth of franking credits and 9.1763 cents worth of foreign tax credits.

The SPDR S&P World ex Australia Carbon Aware ETF (ASX: WXOZ) will pay 345.1500 cents in cash per unit. The ETF will also pay 11.4313 cents worth of foreign tax credits.

The SPDR S&P/ASX 200 Financials Ex-A-REIT Fund ETF (ASX: OZF) will pay 70.5192 cents in cash per unit plus 11.4581 cents worth of franking credits.

The SPDR S&P 500 ETF Trust (ASX: SPY) will pay US 1.761117 cents in cash per unit. The ex-dividend date was 20 June. The expected pay date for ASX investors is 14 August. State Street will announce the foreign exchange rate for the conversion into Australian currency in due course.

The post Own SPDR ASX ETFs? Here is your next dividend and when you'll receive it 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.

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.

There's a lot to like about ASX index funds like Vanguard's. Investors get broad diversification, and exposure to some of the country's best companies, and ASX index ETFs tend to be generous when it comes to dividend distributions too.

But speaking of dividends, the ASX is also home to several ETFs that purely focus on maximising dividend income for their investors.

These ETFs might not be as popular as index funds like the Vanguard Australian Shares ETF. But they still command a significant chunk of the market.

The ASX's dividend ETFs in focus

For example, the Vanguard Australian Shares High Yield ETF (ASX: VHY) has more than $4 billion in assets under management. Rather than investing in 200 or 300 shares like an index fund would, this ETF holds a far more concentrated portfolio of 73 shares (at its latest count).

It does this to focus on investing only in shares that pay out higher and more sustainable dividends compared to the broader market.

It's not the only ASX ETF that is built this way either. The ASX also houses the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) and the SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI), among a few others.

But are these ETFs really a better deal for those investors seeking dividend income? Well, that's what we'll be looking at today.

Well, let's start with the basics. So as of 28 February, the Vanguard Australian Shares ETF has returned 6.47% over the past 12 months, and an average of 8% per annum over the past three years. Over the past five, it has averaged 7.86% per annum.

This ETF has paid out four dividend distributions over the past 12 months, which come to an annual total of $6.36 per unit. That gives the Vanguard Australian Shares ETF a trailing yield of 7.25% on current pricing. This fund charges a management fee of 0.1% per annum.

Let's compare that to Vanguard's dividend-focused ETF.

Income or returns?

So Vanguard's High Yield ETF has returned 11.11% over the 12 months to 28 February. Over the past three years, it has averaged 11.53% per annum, and 8.55% per annum over the past five. This ETF pays out quarterly dividend distributions too.

On current prices, the past 12 months' total of $4.15 in distributions per unit gives this ETF a trailing yield of 6.26%. This fund charges a management fee of 0.25% per annum.

So, somewhat ironically, we can conclude that the Vanguard Australian Shares ETF offers a higher trailing yield right now than the Vanguard High Yield ETF. However, the High Yield ETF's overall performance (which assumes reinvested dividends) over one, three, and five years has been superior.

This doesn't carry over to some of the other dividend-focused ETFs on the ASX though. For example, the iShares Dividend Opportunities ETF has averaged 6.15% per annum over the past three years, and 4.6% per annum over the past five. It charges 0.23% per annum.

In the SPDR High Dividend Yield Fund's case, the story is different again. This ETF has given its investors a return of 8.08% over the 12 months to 28 February. Over three years, it has averaged 8.7% per annum, and 7.65% over five.

So when it comes to overall performance, Vanguard's High Yield ETF seems to take the crown over most other ASX income-focused ETFs. That includes Vanguard's own ASX 300 index fund.

Thus, we can conclude that investors would have been better off investing in this High Yield ETF over any period in recent history. But when it comes to raw dividend payments, Vanguard's Australian Shares ETF comes out on top. Go figure.

The post Is a dividend ETF really better than an ASX index fund for income? appeared first on The Motley Fool Australia.

An ASX dividend share offering a 10% or greater yield on one's cash is a compelling proposition. We only found out this week that Australia's annual inflation rate is running at 6.9%. This technically means that if a dividend yield is under that threshold, the payments alone are not keeping your returns above breakeven.

So a 10% yielder is looking pretty good on that basis.

But finding high-yield ASX dividend shares is a bit of a risky business. There are plenty out there, to be sure. But if an ASX dividend share is offering a trailing yield above 10%, it's a sign that an investor might have to be wary. A company's trailing dividend yield reflects the past, not the future.

And if the share market lets a share trade with a trailing yield of more than 10%, it can often mean that many investors aren't expecting the dividends to continue at that level.

Otherwise, there would be more buyers, pushing the yield lower. So, always take a high dividend yield with a grain of salt.

But we digress. Here are 10 ASX dividend shares offering a dividend yield above 10% right now. The data comes from S&P Global Market Intelligence.

10 ASX shares with dividend yields over 10% today

Smartgroup Corporation Ltd (ASX: SIQ)

Smartgroup has paid out 66 cents per share in dividends over the past 12 months. That includes the March special dividend of 30 cents per share. This gives Smartgroup a trailing dividend yield of 12.6% right now.

Tabcorp Holdings Limited (ASX: TAH)

Gaming services provider Tabcorp has doled out payments worth a collective 13 cents per share this year. That gives Tabcorp a trailing yield of 12.42% at current pricing. But keep in mind that Tabcorp spun out Lottery Corporation Ltd (ASX: TLC) earlier this year, so this could affect Tabcorp's future dividend levels.

Yancoal Australia Ltd (ASX: YAL)

ASX coal share Yancoal is next up. This coal company has rained cash on its shareholders this year. It has doled out $1.03 in ordinary dividends per share, as well as a special dividend of 20.4 cents, for a total of $1.23 in dividends per share for 2022. That translates to a trailing dividend yield of 17.56% for just the ordinary dividends, and a whopping 21%, including the special dividend.

Magellan Financial Group Ltd (ASX: MFG)

ASX fund manager Magellan is another high-yielding share right now. This company has rolled out a total of $1.79 in dividends per share this year. At Magellan's current share price, that is worth a trailing yield of 18.34%

Latitude Group Holdings Ltd (ASX: LFS)

Financial services company Latitude is another relative newcomer to the ASX, having only listed in April last year. But it has certainly hit the ground running when it comes to dividend payments. Latitude has funded a total of 15.7 cents per share in dividends in 29022. That gives the ASX financial share a trailing yield of 11.89% right now.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the ASX's more well-known dividend payers these days. And over 2022, Fortescue did not disappoint in this regard. Investors have enjoyed a total of $2.07 in dividend payments per share this year. That gives Fortescue a trailing yield of 10.51% today.

Base Resources Ltd (ASX: BSE)

Mineral sands producer Base Resources is next. This company has given investors two dividends worth 3 cents per share each over 2022. On today's share price of 21 cents, that equates to a trailing yield of a whopping 28.57%

SPDR S&P/ASX 200 Resources ETF (ASX: OZR)

This exchange-traded fund (ETF) has had a top year when it comes to distribution payouts. This fund, as its name implies, holds a basket of ASX resources shares. So you can understand why it has been able to make its investors very happy in this regard. Investors have enjoyed payments worth a total of $2.08 per unit this year. That gives this ETF a trailing yield of 14.54% on today's pricing

Regal Investment Fund (ASX: RF1)

Listed investment trust Regal is another dividend share with an enviable yield. Investors have enjoyed distributions worth 39.56 cents per unit over the past 12 months. That gives the Regal Investment Fund a trailing distribution yield of 12.21%.

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

Our final share to check out today is another ETF. As its name implies, this fund from SPDR focuses on holding a basket of high-yield dividend shares. It pays distributions quarterly, which, over the past 12 months, totals $4.29 per unit. On the current unit price of $27.95, that gives this ETF a trailing yield of 15.35%.

The post 10 ASX dividend shares paying more than 10% yield right now appeared first on The Motley Fool Australia.

This ETF prom provider SPDR aims to track the MSCI Australia Select High Dividend Yield Index. According to the provider, this index is designed to "reflect the performance of listed Australian companies with relatively high dividend income and quality characteristics with the potential for franked dividend income".

How does the SPDR MSCI Australia Select High Dividend Yield Fund invest?

It currently holds just 32 shares, a far cry from an ASX 200 index fund with its 200 holdings. The top five of these holdings are as follows:

1. Fortescue Metals Group Limited (ASX: FMG) with an 11.37% portfolio weighting
2. BHP Group Ltd (ASX: BHP) with a weighting of 10.45%
3. Rio Tinto Limited (ASX: RIO) with a weighting of 10.01%
4. Wesfarmers Ltd (ASX: WES) with a weighting of 8.03%
5. Mineral Resources Limited (ASX: MIN) with a weighting of 6.52%

Currently, SYI's portfolio offers a dividend distribution yield of 7.48%. This yield comes with franking credits too, which gives this yield an additional kick.

So let's see how this translates into performance. After all, the conventional wisdom dictates that investors usually take an overall performance hit if they want to maximise dividend income.

So SYI has returned 13.15% over the past 12 months (as of 31 December). It has also averaged a return of 11.19% per annum over the past 3 years, and 6.41% over the past 5.

In contrast, the iShares ASX 200 ETF that we discussed earlier has given investors a return of 17.11% over the past year. It has also averaged a return of 13.51% over the past 3 years, and 9.62% over the past 5.

So investors have indeed sacrificed some overall returns with this particular ETF compared to the ASX 200, in exchange for larger dividend distributions. But given we all have different investing goals and needs, this might suit some investors.

The SPDR MSCI Australia Select High Dividend Yield Fund charges a management fee of 0.35% per annum (or $35 a year for every $10,000 invested).

The post The SPDR MSCI Australia Select High Dividend Yield Fund (ASX:SYI) explained appeared first on The Motley Fool Australia.

Yes, there are indeed a number of ETFs on the ASX that specifically focus on providing dividend income. So let's dig into a few of them, and see which one is offering the biggest yield right now.

Vanguard and iShares offer up ASX dividend income ETFs

First up is the Vanguard Australian Shares High Yield ETF (ASX: VHY), the ASX's largest dividend-focused ETF. VHY currently invests in 62 ASX dividend shares, the most heavily weighted of which are Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), BHP Group Ltd (ASX: BHP), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

VHY charges a management fee of 0.25% per annum and has returned an average of 7.88% per annum over the past five years. Its trailing dividend distribution yield is currently sitting at 5.02%.

Next, we have the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD). This is another popular dividend ETF from BlackRock. This ETF has 48 holdings, the most heavily weighted of which are Woolworths Group Ltd (ASX: WOW), Wesfarmers, BHP, Coles Group Ltd (ASX: COL) and Fortescue Metals Group Limited (ASX: FMG).

IHD charges a management fee of 0.3% per annum and has returned an average of 5.97% per annum over the past five years. Its trailing dividend distribution yield is presently at 5.36%.

What about SPDR and VanEck?

Up next is the SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). This is a more concentrated fund than the two above, holding 32 ASX shares at the latest update. The largest of these are Fortescue Metals, BHP, Rio Tinto Limited (ASX: RIO), Wesfarmers and Mineral Resources Limited (ASX: MIN).

SYI charges a management fee of 0.35% per annum and has returned an average of 6.6% per annum over the past five years. Its trailing dividend distribution yield is currently sitting at 7.78%.

Finally, we have the VanEck Morningstar Australian Moat Income ETF (ASX: DVDY). DVDY is our most concentrated income fund we're checking out today, with just 25 holdings at the latest data. Its top holdings are Wesfarmers, Woolworths, ASX Ltd (ASX: ASX), Transurban Group (ASX: TCL) and APA Group (ASX: APA).

DVDY charges a management fee of 0.35% per annum. This particular fund hasn't been around as long as the ones above. Its inception date is September 2020. Since then, it has returned an annual average of 17.32% (remember, that isn't a fair comparison to the funds above). Its trailing dividend distribution yield is currently sitting at 3.42%.

Foolish Takeaway

So as you can see, Vanguard's VHY ETF has returned the most over the past five years to its investors, accounting for both capital growth and dividend income. It also offers the lowest fees on this list. However, the SPDR SYI ETF currently offers the largest income potential, going off of trailing yield.

So one of these funds might suit differing preferences to another, depending on individual investing goals. One thing is for sure though. If you're after an ASX dividend income ETF, you are certainly spoilt for choice!

The post Which ASX dividend ETF offers the highest income yield right now? appeared first on The Motley Fool Australia.

We still seem to be a ways away from the all-time high of 7,132.7 we saw in mid-January – and that leads me to think, in turn, that today might be a good time to deploy some additional funds into the markets today.

Here are three ASX shares that I consider worthy of an investment in today's market.

Coles Group Ltd (ASX: COL)

I think the consumer staples/grocery sector is a prudent one to be invested in, in this stage of the economic cycle and Coles shares are a fantastic candidate. Although the fundamentals of Coles' arch-rival Woolworths Group Ltd (ASX: WOW) are slightly stronger, I've chosen Coles for its far more attractive share price today. Woolies' shares are currently trading on nearly 38 times earnings, whilst Coles' are at a far more reasonable (in my opinion) 21.

Coles' plans to cut costs through supply-chain efficiencies and automation are impressive and set the company up well to expand its earnings and dividends in the 2020s in my view.

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

In a similar vein, I think the recent pull-back in the ASX translates into a great time to pick up shares of this well-diversified income exchange traded fund (ETF). This fund holds a basket of top-yielding ASX shares that are also screened for 'dividend trap' characteristics. Some of its largest holdings currently include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES).

With an average earnings multiple of 15.46 and trailing yield of 5.72%, I think this ETF is another top buy in today's market.

Australia and New Zealand Banking Group (ASX: ANZ)

In my opinion, ANZ is the best value for money for a 'big four' ASX bank stock today. ANZ shares are currently going for $25.97 (at the time of writing), which gives any new investors a trailing dividend yield of 6.16%, which also comes 70% franked.

Although there are a raft of issues facing the banking sector right now (low interest rates being one), I think grabbing ANZ shares for the same price they were available for in March 2010 today is a pretty good value deal. A 6.16% yield is probably more than triple what an ANZ term deposit will pay you these days as well, so I think you could do a lot worse than this banking giant.

The post Where I would spend $10,000 today on ASX shares appeared first on The Motley Fool Australia.

In all seriousness, many good investing portfolios have a 'core' – a solid foundation of select shares that you can rely on as a bedrock of stability, growth and perhaps dividend income. Having such a core in your portfolio can also help lend confidence if you want to take some moonshot 'high-risk/high-reward' bets, for example.

Here are 3 ASX shares that I think would be perfect to build an ASX portfolio around.

CSL Limited (ASX: CSL)

CSL is one of the best performing ASX blue-chip shares in recent memory. This healthcare giant boasts a formidable operation in the blood plasma industry with an unmatched R&D program to boot. In addition, the company's vaccine division is another standout performer and has even been called on by government in times of national concern (such as the 2009 swine flu scare).

I expect CSL to remain a leader in the Aussie healthcare industry as well as grow into a globally dominant heathcare giant over the next decade. Thus, it's a share I would be very happy to have at the centre of my ASX portfolio.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

'Soul Patts' has been called the Berkshire Hathaway of the ASX due to its mini-conglomerate structure and its diverse stable of underlying holdings. These currently include TPG Telecom Ltd (ASX: TPM), New Hope Corporation Limited (ASX: NHC) and Brickworks Limited (ASX: BKW) amongst others.

As one SOL share is really an investment in a variety of different investments, I think this company would make a perfect 'core' stock to have in your portfolio. Soul Patts is also one of the few ASX companies that has increased its dividend every year of this century so far – which gives me a lot of confidence as an investor.

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

A final candidate is this exchange traded fund (ETF). Dividend income is a valuable part of any investing portfolio as it can significantly help boost your returns – especially during a bear market when stock prices might be falling.

This ETF invests in a basket of 42 of the the highest-yielding stocks on the ASX. These currently include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES). From these holdings, it was able to offer a trailing 5.8% dividend yield in 2019 – which can also give you an ongoing stream of cash to plough back into your portfolio as you see fit. Thus, I think this ETF would be a useful stock to hold in your portfolio long-term.

The post 3 ASX shares you can build a quality portfolio around appeared first on The Motley Fool Australia.

This is because they provide investors with the ability to invest in a collection of shares through just a single investment.

Three ETFs that I feel are good options for investors right now are listed below. Here's why I would buy them in November:

iShares Global Healthcare ETF (ASX: IXJ)

With ageing populations around the world growing strongly and chronic disease burden increasing, demand for healthcare services is expected to strengthen materially over the next few decades. In light of this, I think the healthcare sector is a great place to invest with a long term view. One way you can do this is through an investment in the iShares Global Healthcare ETF. This ETF gives investors exposure to the world's biggest and best healthcare companies. This includes the likes of CSL Ltd (ASX: CSL), Johnson & Johnson, Novartis, and Pfizer.

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

Investors that are searching for a source of income might want to consider this ETF. The SPDR MSCI Australia Select High Dividend Yield Fund ETF gives investors exposure to 42 of the highest-yielding shares on the local share market. This includes the likes of Rio Tinto Limited (ASX: RIO), Sydney Airport Holdings Pty Ltd (ASX: SYD), Wesfarmers Ltd (ASX: WES), and the big four banks. At present the ETF provides investors with a dividend yield 5.8%.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to consider buying is the Vanguard MSCI Index International Shares ETF. It provides investors with low-cost exposure to many of the world's leading companies that are listed in major developed countries. This allows investors to participate in the long-term growth potential of the global economy, rather than just the domestic market. Among its top holdings you will find the likes of Amazon, Apple, Microsoft, Nestle, and Visa.

The post 3 of the best ETFs to buy in November appeared first on The Motley Fool Australia.

This is because there are a number of ETFs that have been set up to give investors exposure to a collection of dividend shares.

Three that I think are worth considering are listed below:

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

This ETF has been designed to reflect the performance of listed Australian companies with relatively high dividend income and quality characteristics. It includes Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks, Wesfarmers Ltd (ASX: WES) and Rio Tinto Limited (ASX: RIO). At present its units provide a 6% dividend yield, which is paid to unit holders in quarterly instalments. Which could be very helpful for your cash flow.

Vanguard Australian Shares Index ETF (ASX: VAS)

Another option for income investors to consider is the Vanguard Australian Shares Index ETF. It has been designed to mirror the S&P/ASX 300 index. This means it gives investors exposure to blue chips such as the banks, BHP Group Ltd (ASX: BHP), and Telstra Corporation Ltd (ASX: TLS), and smaller companies including Accent Group Ltd (ASX: AX1) and Cedar Woods Properties Limited (ASX: CWP). I like the diversity of this ETF, its low fees, and attractive 4% dividend yield.

VanEck Vectors Australian Banks ETF (ASX: MVB)

Finally, if you're interested in investing in bank shares but can't decide which one to buy, then the VanEck Vectors Australian Banks ETF could be for you. This is because this ETF gives investors the opportunity to get a piece of them all in a single investment. The VanEck Vectors Australian Banks ETF provides exposure to all the big four banks, the regionals, and also Macquarie Group Ltd (ASX: MQG). Its units currently provide a 5.4% partially franked dividend yield.

The post 3 quality ETFs with generous dividend yields appeared first on The Motley Fool Australia.

Sure, you can invest in something like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) if you just want to follow the S&P/ASX 200 (ASX: XJO) index, but to misquote a popular Disney film, there's also a whole new world of ETF investments out there for you to peruse.

So here are 3 top ASX ETFs that I think are amongst the best available on the ASX.

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

Rather than tracking the whole ASX 200 index, SYI chooses 40–45 of the highest-yielding ASX stocks on the market, which the fund believes will continue to pay an above-average dividend yield, complete with franking credits. This enables SYI to offer a current dividend yield of 6.04%.

Its top holdings include the big four ASX banks (naturally) as well as Wesfarmers Ltd (ASX: WES), Rio Tinto Limited (ASX: RIO) and Sydney Airport Holdings Pty Ltd (ASX: SYD).

I think SYI is a great choice if you're after strong investing cash flow or if you're reliant on dividend income to live.

VanEck Vectors Wide Moat ETF (ASX: MOAT)

MOAT is an ASX ETF that invests in high-quality US companies, based on the durability of each holdings' competitive advantage, or 'moat'. I think this ETF would be a great choice for investors looking for exposure to the US markets, evidenced by MOAT's return of 17.5% per annum over the past five years.

Some of this ETF's top holdings include shoe-king Nike, cereal giant Kellogg Co and one of Warren Buffett's favourite US banks, Wells Fargo.

Vanguard Australian Shares Index ETF (ASX: VAS)

If you'd rather a more vanilla market-tracking ETF, I think Vanguard's flagship VAS fund is your best choice. Rather than your standard ASX 200 index fund, VAS instead follows the ASX 300, meaning you get some smaller cap stocks thrown into the mix, which is great for diversification.

VAS has a tiny management fee of 0.1% and offers a respectable dividend yield of 4.03% at the present time.

Foolish takeaway

I think these 3 ASX ETFs are amongst the best available on the ASX. Each (or even a combination) would suit most investors, in my opinion, and provide good income and returns for many years to come.

The post 3 top ASX ETFs to buy this week appeared first on The Motley Fool Australia.

But ETFs don't stop there – there are some slightly more exotic offerings like the BetaShares Global Cybersecurity ETF (ASX: HACK), for example. But of all the offerings (and there are a lot), there is one ETF that is my personal favourite – and it's a nice mix of the vanilla and the more exotic (in my opinion anyway).

Enter MOAT

The VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) is my favourite ASX ETF for two reasons.

The first is that it only invests in what VanEck calls "attractively priced companies with sustainable competitive advantages" over in the United States (US). The US stock markets are home to most of the best companies of the world and you get most of them with MOAT. A 'sustainable competitive advantage' indicates that a company has an ability to protect its earnings from competitors through branding, market or pricing power.

Take Kellogg's, a cereal company with some of the most recognisable brands in the breakfast business – just think Rice Bubbles, Coco-Puffs and Corn Flakes. Sure, you can buy another company's 'rice puffs', but they're not Rice Bubbles and plenty of customers won't compromise. That's part of the reason why Kellogg's is one of MOAT's biggest positions at the current time. Other top holdings include Western Union, Amazon, Facebook, McDonald's and Disney – all companies with similar advantages.

The second reason MOAT is my favourite ETF is its performance history. Over the past year, MOAT has delivered a 19.91% return. If we go out to three and five years, MOAT has returned 18.27% and 18.96% per annum, respectively. This compares with the S&P 500 index (unhedged) return of 17.12%, 17.37% and 18.37% for the same periods. Finding an ETF that can consistently beat the S&P 500 is a rare feat, but MOAT delivers the goods.

Foolish takeaway

There are many quality ETFs available on the ASX, but MOAT is my personal favourite. With international diversification, quality companies, an excellent performance record and a 2.12% trailing yield, you could certainly do a lot worse.

The post Is this the best ETF on the ASX? appeared first on The Motley Fool Australia.

So here's how I would build a passive dividend income portfolio today using a $100,000 lump sum.

SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI) – $40,000

SYI is an exchange traded fund that only selects the highest yielding ASX shares (42 at the latest count). Rather than debating which bank or resource giant has the best dividend, this ETF boasts the full range and forms a great backbone for our portfolio. SYI has a trailing yield of 6.1% and comes 87.6% franked, so you get a grossed-up yield of 7.3% with the credits. It's heavy with the 'Big Four' banks but also has Sydney Airport Holdings Pty Ltd (ASX: SYD and Wesfarmers Ltd (ASX: WES).

SPDR S&P Global Dividend Fund (ASX: WDIV) – $30,000

Another ETF, WDIV focuses on global companies that have had stable or increasing dividends for 10 years or more. Like with any portfolio, I believe it is important to get some international exposure and what better way than with companies of this calibre. WDIV contains companies that range from American and Canadian to British and Japanese – so you are really getting some diversity here. Some of WDIV's top holdings include AT&T, Laurentian Bank of Canada and Philip Morris International. This ETF has a trailing yield of 4.92% but alas, no franking credits with this one.

Washington H. Soul Pattinson & Co. Ltd (ASX: SOL) – $20,000

On the surface, Soul Patts' current dividend yield of 2.73% doesn't seem that special. But if I told you that Soul Patts has increased said dividend every year since 2000, hopefully, it changes your perspective! Dividend growth is just as (if not more) important than a high starting yield, so this ASX investment company makes a fine addition to our portfolio.

Transurban Group (ASX: TCL) – $10,000

When it comes to dividends, most investors think that they don't come more defensive than toll-road king Transurban. With a monopolistic hold on tolled motorways in Sydney and Melbourne and other cities, Transurban can boast infrastructure vital to Australia's economic prosperity. With such a strong dividend, investors have flocked into TCL shares this year and bid the price way into the stratosphere – hence we are only going to throw 10% of our portfolio into Transurban. But with its 3.9% yield, it remains a formidable income stock.

Foolish Takeaway

With this collection of income-producing assets, I am confident we have a robust, future-proof portfolio capable of throwing out a healthy stream of passive cashflow. One of the best things about shares are dividends. Investing is lots of fun, but when you're getting paid to do it? That might just be the dream.

The post How I would build a $100,000 ASX passive income portfolio appeared first on The Motley Fool Australia.