How much passive income can they actually produce?

The answer depends on the type of ETF you choose. Some focus purely on yield, while others aim to balance income with diversification and stability.

To give you a clearer idea, let's look at three popular income-focused ETFs and what a $100,000 investment in each could generate.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

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

It focuses on high-dividend-paying Australian shares, which means it has significant exposure to banks and resource stocks.

Its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ).

That concentration can lead to solid income, but it also means returns are influenced by how those sectors perform.

With a trailing dividend yield of around 3.9%, a $100,000 investment would generate approximately $3,900 per year in passive income.

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

The Betashares S&P Australian Shares High Yield ETF takes a slightly different approach.

It also focuses on high-yielding Australian shares, but places a strong emphasis on consistent income and monthly distributions, which can be appealing for investors seeking regular cash flow.

Its largest holdings currently include NAB, Westpac, ANZ Bank, BHP Group, and Woodside Energy Group Ltd (ASX: WDS).

The HYLD ETF has been paying around 11.9 cents per share each month since inception last year, which annualises to approximately $1.42 per share and equates to a yield of about 4.4% at current prices.

At that level, a $100,000 investment would generate roughly $4,400 per year, or about $366 per month in passive income.

Vanguard Diversified Income ETF (ASX: VDIF)

The Vanguard Diversified Income ETF offers a more balanced approach.

Instead of focusing only on high-yield shares, it blends Australian equities, global shares, and fixed income investments.

Its largest exposures include the Vanguard Australian Shares High Yield ETF, Vanguard FTSE All-World High Dividend Yield ETF (LSE: VHYL), and a range of international and fixed interest funds.

This diversification can help smooth income and reduce reliance on any single sector or market.

With a dividend yield of around 3.7%, a $100,000 investment would generate approximately $3,700 per year in passive income.

Foolish takeaway

A $100,000 investment in income-focused ETFs could generate roughly $3,700 to $4,400 per year, depending on the strategy you choose.

For me, the more important question isn't just how much income you can generate today, but how sustainable that income is over time.

That's where diversification, quality, and long-term thinking start to matter just as much as the yield itself.

The post How much passive income could $100,000 in ETFs generate? appeared first on The Motley Fool Australia.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) and the Vanguard US Total Market Shares ETF (ASX: VTS) can also be found in many an ASX investor's portfolios today.

So it goes without saying that two new Vanguard ETFs hitting the ASX is big news for many investors.

Yep, Vanguard has just launched two new exchange-traded fund products. Unlike other providers, Vanguard doesn't tend to debut new funds too often, so this is indeed big ASX news.

Let's dive into these new ASX ETFs.

Two new ASX ETFs from Vanguard

First up, we have the Vanguard Diversified All Growth Index ETF (ASX: VDAL).

This new ETF joins the provider's series of 'one-size fits all' ETFs, which invest in a basket of underlying Vanguard funds to form their own diversified portfolio.

Here at the Fool, we've previously discussed the popular Vanguard Diversified High Growth Index ETF (ASX: VDHG) many times. This fund splits investors' money between ASX shares, international shares (both hedged and unhedged), small-cap international stocks, emerging markets, and fixed-interest investments (bonds). The latter asset class makes up 10% of VDHG's portfolio.

VDAL aims to turn this up a notch. It holds a similar portfolio but eliminates exposure to bonds entirely. In their place, it ups the exposure to the other pillars of its portfolio.

Investors with a very long time horizon might find this ETF better suits them than VDHG, so let's see how this ETF performs going forward.

VDAL will charge a management fee of 0.27% per annum.

One for the income investors

Next up, we have the Vanguard Diversified Income ETF (ASX: VDIF) to dive into.

This is a rather unusual fund for Vanguard to deploy, as there are no similar products on the market currently.

VDIF, as its name implies, is a fund designed to deliver stable income to investors. According to Vanguard, investors should expect "regular income and some capital growth potential" with the Vanguard Diversified Income ETF.

It derives this income from a combination of ASX shares, international shares, property investments, and both government and corporate bonds. The portfolio is split 60-40, with 'growth assets' like shares making up the 60%, and the 'defensive assets' like bonds making up the 40%.

Vanguard hasn't yet revealed what the exact underlying investments in VDIF are. But it has said that this ETF's portfolio contains more than 12,000 individual securities

VDIF will charge a management fee of 0.32% per annum.

The post Meet the 2 new Vanguard ETFs that just hit the ASX appeared first on The Motley Fool Australia.