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.

Income starts to matter more, and I want that income to be as reliable as possible. At the same time, I still want the portfolio to hold up over the long term.

Here is how I would approach buying ASX dividend shares for passive income at this stage.

Focus on the starting yield

The price you pay matters more when you are investing for income.

Buying ASX shares after a pullback can lift the dividend yield and improve the income from day one. That is why I pay close attention to companies trading below their usual levels.

For example, when a business like Harvey Norman Holdings Ltd (ASX: HVN) falls well below its highs, the potential yield on offer with its shares can become very generous.

In fact, according to CommSec consensus estimates, Harvey Norman shares are expected to offer a dividend yield of around 8% in FY27.

Look for businesses that can keep paying

A high dividend yield is only useful if it can be sustained.

I focus on companies that generate consistent cash flow and have a track record of paying dividends through different conditions. That often leads me toward businesses with strong positions in their markets.

Wesfarmers Ltd (ASX: WES) is a good example of this. The Bunnings and Kmart owners' earnings are supported by demand that tends to hold up well in most economic environments, which helps underpin regular and growing dividends.

Diversify

I think a balanced income portfolio is important.

An easy way to achieve this is with an exchange-traded fund (ETF) like the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the Betashares S&P Australian Shares High Yield ETF (ASX: HYLD).

They allow you to buy a large group of ASX dividend shares through a single investment. This provides almost instant diversification to a passive income portfolio.

Keep it manageable

As retirement approaches, simplicity becomes more important.

I would rather own a handful of income-producing ASX shares that I understand than a large number of positions that are harder to follow. That makes it easier to track performance and stay confident in the portfolio.

Foolish Takeaway

I think building a passive income portfolio comes down to buying the right shares at the right price and holding them over time.

A mix of reliable dividend payers and opportunities created by share price weakness can help build a steady income stream, which is what I would focus on as I get close to retirement.

The post Almost ready to retire? I'd buy cheap ASX dividend shares for passive income appeared first on The Motley Fool Australia.

But if you're not a fan of stock picking, don't worry. There is a simpler approach. Exchange traded funds (ETFs) allow investors to access a diversified group of income-generating shares through a single investment.

Two ASX ETFs stand out for those focused on dividend income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

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

It provides exposure to a broad group of ASX shares with higher forecast dividend yields.

It tracks the FTSE Australia High Dividend Yield Index, which focuses on companies expected to pay above-average dividends. The portfolio is diversified, with limits of 40% per industry and 10% per company. It also excludes A-REITs.

The fund includes some of the largest income-generating companies on the ASX. Its top holdings feature names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Woodside Energy Group Ltd (ASX: WDS), and Telstra Group Ltd (ASX: TLS).

This structure allows investors to access a wide range of dividend-paying shares without relying on a small number of companies. It also offers a low-cost way to build exposure to income across the Australian market.

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

Another ASX ETF to consider for passive income is the Betashares S&P Australian Shares High Yield ETF.

It takes a similar approach to dividend investing. It provides exposure to a portfolio of 50 Australian shares with high forecast dividend yields. The fund also applies additional screening to improve the quality of those yields.

This includes filtering out potential dividend traps, such as companies expected to pay unsustainably high dividends or those with elevated volatility relative to their forecast payouts.

The portfolio also includes major ASX names such as BHP, Westpac, ANZ Group Holdings Ltd (ASX: ANZ), and Macquarie Group Ltd (ASX: MQG).

Another positive is that the Betashares S&P Australian Shares High Yield pays income monthly, which may appeal to investors looking for more regular cash flow.

A simpler way to generate passive income

Using ASX ETFs like these removes much of the complexity from dividend investing.

Instead of selecting and managing individual ASX dividend shares, investors can gain diversified exposure to high-yield companies through a single trade.

The post The easy way to buy ASX dividend shares and build passive income appeared first on The Motley Fool Australia.

But for many investors, it also feels risky. Chasing high returns or speculative stocks can lead to volatility and sleepless nights.

The good news is that building a second income does not have to involve taking big risks. In fact, a more measured approach can often be more effective over the long term.

Start with the right goal

The first step is to be clear about what you are trying to achieve.

If the goal is income, then the focus should be on building a portfolio that generates reliable cash flow, not just capital gains.

This means thinking in terms of yield. For example, a portfolio with a 5% average dividend yield would require around $400,000 to generate $20,000 per year.

Once you understand the target, the path becomes much clearer.

Focus on reliable businesses

Not all dividends are equal. Companies that consistently generate strong cash flow and have a history of paying dividends are often better suited for income-focused portfolios.

These tend to include sectors like banking, telecommunications, infrastructure, and consumer staples. They may not always deliver the fastest growth, but they often provide more predictable income. Think Telstra Group Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW).

The key is reliability. A slightly lower yield from a stable ASX share is often better than a high yield that may not be sustainable.

Use diversification to reduce risk

One of the simplest ways to lower risk is diversification.

By spreading investments across different sectors and companies, you reduce the impact of any single underperformer.

This can be done through a mix of individual ASX shares or by using ETFs that focus on income-producing assets like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Diversification helps create a more stable income stream over time.

Reinvest before you rely on it

In the early stages, it can be tempting to start using dividend income straight away.

But reinvesting those payments can significantly accelerate progress.

By reinvesting dividends, you increase the size of your portfolio, which in turn increases future income. This compounding effect can make a meaningful difference over time.

Once the portfolio reaches a comfortable size, you can then begin to draw on the income.

Be patient and stay consistent

Building a second income is not something that happens overnight.

It requires regular contributions, a long-term mindset, and the discipline to stay invested through market cycles.

There will be periods where dividends fluctuate or markets become volatile. But over time, a portfolio built on quality and consistency can deliver reliable income.

A steady path to financial freedom

You do not need to take big risks to build a meaningful second income from ASX shares.

By focusing on quality businesses, reinvesting early, and staying consistent, it is possible to create a portfolio that delivers steady cash flow over time.

It may not be the fastest approach, but it is one that many investors find far more sustainable.

The post How to build a second income from ASX shares without taking big risks appeared first on The Motley Fool Australia.

This is often done using dividend shares, or dividend paying ASX ETFs. 

The trade off for many investors when targeting passive income is missing out on strong capital gains.

However there is one fund that stands out as being able to offer both. 

ASX leads global dividends

Some investors may not realise that Australia has historically offered some of the highest average dividend yields in the world. 

As of December 31, 2024, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) was approximately 3.5%.

According to research from S&P Global, this outpaced Europe, Canada and the US. 

However it is worth noting it's significantly lower than its long-term average of approximately 4.5%.

According to Vanguard, Australia's affinity with equity markets and our higher than the global average dividend rate, means that many investors look to shares for that income. 

But often there is a trade-off to be made between income and growth.

The exception to this rule is the Vanguard Australian Shares High Yield ETF (ASX: VHY). 

ASX ETF overview

The Vanguard Australian Shares High Yield ETF seeks to track the return of the FTSE Australia High Dividend Yield Index. 

According to Vanguard, it currently yields around 5% per annum (paid quarterly) – even higher when including franking credits. 

That means a $100k investment in this ASX ETF would have paid roughly $5,000 annually in distributions, before franking – a robust income source for retirees or income-focused investors.

Passive income and growth 

What stands out about this fund, is it has also generated strong growth alongside consistent dividends. 

It has delivered about 9–10% total return per year over the last 5 years, closely matching the overall Australian share market's performance while outpacing many dedicated "high-income" funds. 

Notably, VHY's total return (income + price appreciation) has surpassed the pure income strategies of some competitors. By contrast, VHY provided ample income and share-price growth, helping investors' portfolios grow more over time.

This combination of passive income and growth is thanks to the underlying fund strategy.

VHY follows a transparent index-based strategy: it tracks the FTSE Australia High Dividend Yield Index, dividend-paying Australian companies. This rules-based approach ensures the fund consistently tilts toward above-average yielders while avoiding subjective stock picks.

The result is a straightforward, "core" equity income holding for clients – easy to understand and explain. In contrast, some income-focused peers use complex active tactics (e.g. rotating stocks around ex-dividend dates or writing call options for extra income).

Importantly for investors, the fund also comes with an annual fee of just 0.25%.

The post Why this is the best income ASX ETF for retirees appeared first on The Motley Fool Australia.

This includes investors who hold the most popular ASX ETF in the market, the Vanguard Australian Shares Index ETF (ASX: VAS).

Investors participating in the distribution reinvestment plan (DRP) for any of these ASX ETFs will receive their new allocations today.

Here are the final distribution amounts for investors receiving cash dividends, and the DRP prices for those who are reinvesting.

Own Vanguard ETFs? Here's how much you'll get today

VAS ETF, which tracks the performance of the S&P/ASX 300 Index (ASX: XKO), will pay 84.788 cents per unit. The DRP price is $40.5596.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 81.1358 cents per unit. The DRP price is $81.548.

Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay 29.4897 cents per unit. This ASX ETF tracks the Bloomberg AusBond Composite 0+ Yr Index. The DRP price is $44.9409.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) will pay 50.5047 cents per unit. This ASX ETF allows investors exposure to bricks and mortar via the S&P/ASX 300 A-REIT Index. The DRP price is $83.3674.

What about ETFs holding international shares?

Vanguard MSCI Index International Shares ETF (ASX: VGS) is the largest exchange-traded fund holding diversified international shares on the ASX. It provides exposure to 1,500 stocks in developed nations ex-Australia.

ASX VGS will pay 39.4131 cents per unit in dividends. The DRP price is $143.2044.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) will pay 64.6897 cents per unit. This ASX ETF provides exposure to 16,000 ASX and international shares. The DRP price is $70.7673.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars, will pay 27.0768 cents per unit. The DRP price is $85.3474.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM), which tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, will pay 176.7237 cents per unit. The DRP price is $70.6349.

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) will pay 43.9277 cents per unit. This ASX ETF tracks the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian dollars. The DRP price is $102.14.

Vanguard S&P 500 US Shares Index ETF (ASX: V500) tracks the US benchmark S&P 500 Index (SP: .INX).

ASX V500 will pay 2.6468 cents per unit in dividends. The DRP price is $48.9889.

The post Vanguard ETF dividends to be paid today appeared first on The Motley Fool Australia.

They offer instant diversification, exposure to global markets, and a simple way to build a portfolio without needing to pick individual stocks.

The key is choosing funds that give you a mix of growth, quality, and long-term opportunity.

Here are five excellent ASX ETFs to consider next week.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF that could be a top option is the Vanguard MSCI Index International Shares ETF.

This ETF provides broad exposure to developed markets around the world, including the United States, Europe, and parts of Asia.

Its holdings include global giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA).

What makes the Vanguard MSCI Index International Shares ETF appealing is its simplicity. It allows investors to access global growth through a single investment, potentially making it an ideal core holding.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be worth considering is the hugely popular BetaShares Nasdaq 100 ETF.

It focuses on the Nasdaq 100, which is heavily weighted towards technology and innovation-driven companies.

Top holdings include Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOGL).

This fund provides more concentrated exposure to high-growth sectors, which could help drive strong portfolio returns over time.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF that could be worth considering is the VanEck MSCI International Quality ETF.

It focuses on high-quality stocks with strong earnings, solid balance sheets, and lasting competitive advantages.

Its holdings include Microsoft, Visa (NYSE: V), and Johnson & Johnson (NYSE: JNJ).

This quality tilt can help provide resilience during periods of market volatility. It was recently recommended by analysts at VanEck.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

A fourth ASX ETF to consider is the BetaShares S&P/ASX Australian Technology ETF.

It offers exposure to Australia's leading technology companies. This includes Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), and TechnologyOne Ltd (ASX: TNE).

It provides a way to gain access to local innovation and growth businesses that are expanding globally. And with ASX tech shares down heavily from their highs, now could be an opportune time to snap up the fund.

It was recently recommended by analysts at BetaShares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, the Vanguard Australian Shares High Yield ETF could be a top addition if you're looking for a source of income.

It focuses on high-dividend-paying Australian shares, such as major banks, mining companies, and other established businesses with reliable cash flows.

This could make it a useful complement to growth-focused ETFs, adding stability to a portfolio.

The post 5 excellent ASX ETFs to buy next week 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.

Rising oil and gas prices rattled investors, raising concerns about the impact on the businesses they were invested in.

We are starting to see that impact, with Qantas Airways Ltd (ASX: QAN) doubling its jet fuel cost estimates for 2H FY26 today.

Fortescue Ltd (ASX: FMG) chair Dr Andrew Forrest has also revealed they paid up to double for emergency fuel supplies last month.

With all this in mind, it's interesting to look at how Aussie investors repositioned their ASX ETF portfolios as the conflict unfolded.

Aussies have $329 billion invested in ASX ETFs, and last month they ploughed an additional $5.6 billion into their favoured funds.

That makes March the third-highest month for net inflows ever. It seems the volatility caused by the war did not dampen their interest.

A new report from Betashares, which shows the top 10 ASX ETFs for inflows and outflows last month, reveals some interesting trends.

Let's take a look.

Top 10 ASX ETFs for inflows last month

Top 10 ETFs for outflows

How ASX ETFs investors repositioned last month

The VAS ETF is the most popular Australian shares ETF on the market, so it's no surprise to see it take out the top spot.

VGS is the most popular international shares ETF, so it's routine to see it close to the top as well.

The presence of IHVV in the top inflows list, and its unhedged counterpart IVV ETF in the top outflows, shows investors are mindful of currency changes over the past 12 months.

The Australian dollar has risen from just over 60 US cents 12 months ago to a three-year high of 70.8 US cents today.

As James Gruber, Equity Market Strategist at CommSec, points out:

When the Australian dollar strengthens, your international ETF returns shrink, and if the Australian dollar weakens, your returns improve.

Outflows from QAU ETF reflect profit-taking amid a 21% decline in the gold price over the first three weeks of March.

Sprott Managing Partner, Paul Wong, said investors need not be worried though.

Wong added:

Gold's March drop reflects a liquidity crunch, not a breakdown in its long-term role. 

As financial stress builds, gold is likely to reassert itself as a key monetary anchor.

Another interesting trend is the inflows into non-US international ETFs, reflecting the poorer performance of US markets this year.

In the year to date, the S&P 500 Index (SP: .INX) has lifted just 0.6% compared to a 3% bump for the ASX 200.

The post How ASX ETF investors repositioned as the Iran war shook markets appeared first on The Motley Fool Australia.

In mid-afternoon trade, the VHY unit price is up 0.25% to $85.36, after earlier touching a fresh all-time high of $85.65.

That move extends the ETF's strong 2026 run, with the income-focused fund now up 8.67% year to date and 25.71% over the past 12 months.

The latest gain also leaves VHY sitting at the very top of its 52-week range, which previously topped out near $85.57.

So, what is driving this popular ASX dividend ETF to new highs?

Income demand and market leadership are doing the heavy lifting

VHY's recent strength looks closely tied to where investors are still finding relative safety in the current market.

While growth and small-cap names have remained volatile, money has continued rotating into established areas. These include dividend-paying blue chips, particularly banks, miners, and large industrial stocks.

And that plays directly into VHY's strategy.

The ETF tracks the FTSE Australia High Dividend Yield Index, giving investors diversified exposure to higher-yielding Australian shares.

Its largest exposures remain concentrated in sectors that have performed well this year, especially financials and resources.

Major positions include names such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Wesfarmers Ltd (ASX: WES).

These stocks have generally remained among the ASX's more resilient large-cap dividend payers, helping to support the Vanguard's steady climb.

Yield, franking, and simplicity still appeal

Part of VHY's appeal is its straightforward role in an Australian portfolio.

The fund currently offers a distribution yield of around 5.35% and charges a 0.25% management fee. This helps explain why it remains one of the ASX's more widely used income ETFs.

Rather than relying on one or two bank or mining shares, VHY spreads that income exposure across roughly 80 holdings. It also allows investors to retain meaningful franking credit benefits.

That said, the trade-off remains concentration.

Because the ETF leans heavily toward financials and resources, its performance can still be influenced by bank earnings, commodity prices, and dividend cycles.

Still, today's move to a record high tells us that the market continues rewarding dependable yield and large-cap quality.

A portion of a portfolio in a quality ETF can be very beneficial, particularly for investors focused on income and long-term market exposure.

In this current market, that mix of yield, franking, and blue-chip exposure continues to strongly support investor demand.

The post Guess which ASX ETF just hit an all-time high today? appeared first on The Motley Fool Australia.

While retirement may still be years away, the focus typically shifts from pure growth to a mix of income, stability, and continued capital appreciation.

The good news is that ASX exchange traded funds (ETFs) make it easy to build a diversified portfolio that ticks all of these boxes.

Here are three ASX ETFs that could be top picks for investors in their 50s to consider.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF that could be a top option is the Vanguard Australian Shares High Yield ETF.

For investors in their 50s, income often starts to become a bigger priority. This is where this fund stands out.

It focuses on high-yielding Australian shares, giving investors exposure to many of the market's strongest dividend payers. This typically includes major banks, mining giants, and other established businesses with a history of returning cash to shareholders.

While dividend yields can vary, this fund has traditionally offered an income stream that is competitive with, and often higher than, term deposits.

Importantly, investors are not just getting income. They are also maintaining exposure to the share market, which means there is still potential for capital growth over time.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

Another ASX ETF that could be worth considering is the Vanguard Diversified High Growth Index ETF.

This fund offers something very valuable for investors in their 50s. Simplicity.

It provides exposure to thousands of companies across global and Australian markets, as well as a smaller allocation to fixed income. All of this is wrapped into a single investment.

Despite its name, the Vanguard Diversified High Growth Index ETF is not purely aggressive. Its diversified structure means investors benefit from broad exposure across asset classes, helping to smooth returns over time.

For those who prefer a hands-off approach, this ETF can effectively serve as a core portfolio holding. It allows investors to stay invested in growth assets while maintaining diversification that becomes increasingly important as retirement approaches.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

A third ASX ETF that could be a strong addition is the BetaShares Global Quality Leaders ETF.

Rather than focusing on income, this fund targets high-quality global companies with strong balance sheets, consistent earnings, and competitive advantages.

This includes exposure to leading international businesses such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other global leaders.

For investors in their 50s, this focus on quality can be particularly appealing. Companies with durable earnings and strong financial positions tend to be more resilient during periods of market volatility.

At the same time, they still offer meaningful growth potential, which is essential for ensuring a portfolio keeps pace with inflation over the long term.

The post Why these ASX ETFs could be top picks for investors in their 50s appeared first on The Motley Fool Australia.

Yields across parts of the market have come down as share prices have risen over time, but there are still opportunities to build a portfolio that generates reliable income.

For me, the focus is not just on the size of the dividend yield. It is about how sustainable that income is, and whether the underlying business can continue to support it over time.

Here are three ASX passive income ideas I would be looking at in April.

Transurban Group (ASX: TCL)

Transurban is one of the more consistent income generators on the ASX.

Its toll road assets produce recurring revenue from everyday usage, which tends to be relatively resilient across economic cycles.

What I like most is the visibility. Many of its concessions run for decades, and toll increases are often linked to inflation. That provides a degree of predictability that is valuable for income investors.

The company has also been steadily growing its distributions over time.

For me, Transurban is the kind of infrastructure asset that can anchor a passive income portfolio.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The VHY ETF offers a different approach to income. Instead of relying on a single company, it provides exposure to a diversified portfolio of high-yielding Australian shares.

This includes many of the ASX's traditional income sectors, such as banks, resources, and large industrial companies.

What I find appealing is the simplicity. You are effectively outsourcing the stock selection while still benefiting from dividend income and franking credits.

There will be some variability in payouts from year to year, particularly given the cyclical nature of some holdings. But over time, I think it can be an efficient way to generate income from the broader market.

Magellan Infrastructure Fund (ASX: MICH)

Magellan Infrastructure Fund adds a global dimension to an income portfolio.

It invests in infrastructure assets around the world, including utilities, transport networks, and communications infrastructure. These are businesses that typically generate stable and predictable cash flows.

That stability is important. Infrastructure assets often have regulated or contracted revenue streams, which can support more consistent distributions compared to other sectors.

The fund also provides diversification beyond Australia, which I think is valuable when building a portfolio for income.

With an approximate 3.4% dividend yield, it may not be the highest-yielding option available. But I think the quality and reliability of the underlying assets make it an interesting complement to domestic income sources.

Foolish Takeaway

Passive income investing is not just about chasing the highest yield. For me, it is about building a portfolio that can deliver income consistently over time.

Transurban offers infrastructure-backed cash flow with long-term visibility, the VHY ETF provides diversified exposure to high-yielding Australian shares, and the Magellan Infrastructure Fund adds global infrastructure income and diversification.

Together, I think they represent a solid starting point for anyone looking to build a passive income portfolio this April.

The post My top ASX passive income picks for April appeared first on The Motley Fool Australia.

Some Australians may want to find funds that are weighted towards businesses with strong capital growth potential. Other investors may want to own investments that provide a pleasing level of passive income.

There are advantages (and disadvantages) to each type of ETF strategy, so I think it's wise to look at both ideas.

Capital growth

The power of compounding can help capital growth deliver very pleasing wealth-building over time.

Capital growth would suggest that the businesses involved are growing revenue/profit at a useful speed to help send the share price higher over time.

I don't think investors can go too far wrong with an international-focused ASX ETF that provides pleasing exposure to high-quality, growing businesses such as Vanguard MSCI Index International Shares ETF (ASX: VGS) and iShares S&P 500 ETF (ASX: IVV).

But, I'm a big believer in the idea that higher-quality businesses will outperform average businesses over the long-term, particularly when the market/economy goes through a rough patch.

I like the following international-focused ETFs because of how they build a portfolio based on quality attributes: Global X S&P World Ex Australia GARP ETF (ASX: GARP), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and VanEck Morningstar Wide Moat ETF (ASX: MOAT).

I believe the four options above are great to consider for building wealth and they can also be great options for Australians looking to invest in retirement.

For starters, a retiree may still have decades ahead that their portfolio needs to last, so capital growth is a useful feature.

Secondly, when in retirement, Australians can unlock income by selling a portion of their investment holding each year. For example, if they have $100,000 in an ASX ETF, they could sell $4,000 to unlock a 4% cash flow 'yield'. Its long-term capital growth may be strong enough for the portfolio/ETF value to outpace the sales.

For example, if a $100,000 investment grows in value by 10% over a year it becomes $110,000 and a sale of $4,000 would mean $106,000 remaining for the next year. That's a combination of capital growth of $4,000 of income to spend.

ASX ETFs that provide dividends

Some retirees may not want to sell anything. Instead, their preference may be just to hold an investment and receive passive income from it.

A lot of internationally-focused ASX ETFs don't have a large dividend yield because the underlying shares don't have a large yield either, meaning there's not much income for the ETF to pass on.

Some people may like the Vanguard Australian Shares High Yield ETF (ASX: VHY) because it invests in high-yielding ASX shares, enabling it to give investors a lot of passive income. However, the compound earnings growth of the businesses in this fund are typically low, so I'm not a huge fan.

That's why I like ASX ETFs that have a pleasing targeted distribution yield while still providing investors with a good dividend yield.

One of my favourite ideas in this space is WCM Quality Global Growth Fund (ASX: WCMQ), which targets a distribution yield of 5%. Growth of the fund's net asset value (NAV) can unlock distribution growth for investors.

The post Which ASX ETFs I'd buy for retirement investing appeared first on The Motley Fool Australia.

If I were building a $100,000 ASX retirement income portfolio today, I'd blend three quality dividend shares with two ETFs.

Here's how I'd do it.

Reliable earnings and payouts

I'd start with $25,000 in APA Group Ltd (ASX: APA). The infrastructure giant currently offers a dividend yield of about 6.1%, backed by essential gas pipelines and electricity assets that generate long-term contracted cash flow. That kind of reliability is ideal for retirees seeking a consistent retirement income. 

Next, I'd allocate $20,000 to ANZ Group Holdings Ltd (ASX: ANZ). While the yield is a little below your original 5% screen at roughly 4.5%, the partially franked dividend and resilient banking earnings still make it highly attractive for income investors. Banks remain some of the most dependable dividend payers on the ASX. 

For a third direct shareholding, I'd put $15,000 into Transurban Group (ASX: TCL).

Like APA, it owns hard-to-replicate infrastructure assets, with toll roads across Sydney, Melbourne, and North America. Traffic-linked revenue provides inflation pass-through over time, which can help preserve purchasing power in retirement.

High-yielding blue chips and bonds

Now for the ETFs in the retirement portfolio.

I'd allocate $25,000 to the Vanguard Australian Shares High Yield ETF (ASX: VHY). This ETF gives instant exposure to a basket of Australia's highest-yielding blue-chip shares, including banks, miners, and telcos. It reduces single-stock risk while keeping the income focus front and centre.

The final $15,000 would go into the Vanguard Australian Fixed Interest ETF (ASX: VAF). Bonds might not be exciting, but they add portfolio stability and help smooth out volatility when equity markets get rough.

This blend gives you 60% in direct quality dividend shares, 25% in diversified high-yield equities, and 15% in defensive bonds. It could deliver a blended yield of around 5.3% to 5.8%, along with solid exposure to franking credits and inflation-linked infrastructure.

On a $100,000 portfolio, that could mean $5,300 to $5,800 per year in cash income, before any dividend growth.

Foolish Takeaway

What I really like about this setup is the balance.

APA and Transurban provide infrastructure-style resilience, and ANZ adds partially franked bank income. The Vanguard ETF broadens exposure, while the fixed interest ETF reduces sequence risk, which becomes increasingly important once you're drawing an income.

For an Australian retiree, this is the kind of portfolio that can help generate retirement income today without sacrificing long-term durability.

The post How I'd invest $100,000 for retirement income on the ASX right now appeared first on The Motley Fool Australia.

If you're looking for a simple, diversified approach, these three ASX ETFs could form a powerful retirement foundation.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Starting with the this Vanguard ETF, which is built for income.

It focuses on high-dividend-paying Australian companies, making it a popular choice for retirees seeking steady cash flow. Its strengths lie in strong yield, franking credits, and exposure to some of the ASX's biggest and most reliable dividend payers.

Top holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) — both known for consistent payouts.

The risks? Concentration. This ASX ETF is heavily weighted toward banks and miners, which can increase volatility if those sectors underperform. Dividends can also fluctuate depending on economic conditions.

VHY ETF charges a management fee of 0.25% per year. That means you'll pay about $2.50 annually for every $1,000 invested — deducted automatically from the fund's returns. It's slightly higher than some broad market ASX ETFs, reflecting its focus on high-yield stocks.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Next is the Vanguard MSCI Index International Shares ETF, which brings global growth into the mix.

This fund gives investors exposure to hundreds of companies across developed markets, including the US, Europe, and Japan. That diversification is a major strength, reducing reliance on the Australian economy.

This ASX ETF also taps into some of the world's biggest growth engines. Key holdings include Apple Inc. (NASDAQ: AAPL) and Microsoft Corp. (NASDAQ: MSFT)

The downside? Currency risk and lower dividend yields compared to Australian shares. VGS is more about long-term capital growth than immediate income, which may not suit every retiree on its own.

VGS ETF has a management fee of 0.18% per year. It's considered very cost-effective for global exposure, especially given the diversification across hundreds of international companies.

iShares Core Composite Bond ETF (ASX: IAF)

Finally, this iShares ETF adds stability.

This ASX ETF invests in a diversified portfolio of Australian government and corporate bonds, helping to reduce overall portfolio volatility. It provides regular income and tends to hold up better during equity market downturns. This is making it a key defensive component.

Major holdings include Australian Government bonds and high-quality corporate debt issued by institutions like National Australia Bank Ltd (ASX: NAB).

The trade-off is lower returns. Bonds typically won't deliver the same growth as shares, and rising interest rates can impact bond prices.

This fund is the cheapest of the three, with a fee of just 0.10% per year. That's only $1 per $1,000 invested, making it a low-cost way to add defensive bond exposure to a portfolio.

The post 3 ASX ETFs to fund a comfortable retirement appeared first on The Motley Fool Australia.

But not all income ETFs are created equal. Some focus on high yield, others prioritise consistency, and a few aim to actively boost income.

Here are 3 standout ASX ETFs that income investors should have on their radar right now.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This Vanguard fund is one of the most popular income ASX ETFs on the market — and for good reason. It focuses on high-dividend-paying Australian companies, delivering a strong yield with broad exposure across sectors like banks, miners, and telcos.

Its biggest strength is simplicity and scale, offering a diversified portfolio of around 80 companies with a low management fee of just 0.25%. Major holdings include BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), two of the ASX's most reliable dividend payers.

The trade-off? It's heavily weighted toward financials and resources, which can increase concentration risk.

BetaShares Australian Dividend Harvester Active ETF (ASX: HVST),

Next up is this BetaShares fund, which takes a more hands-on approach. Unlike index-tracking ETFs, HVST is actively managed and aims to deliver consistent income. It's even paying distributions monthly.

That makes it especially attractive for retirees or investors who want regular cash flow.

The ASX ETF typically holds 40 to 60 ASX shares, focusing on highly franked dividend payers. Key holdings often include National Australia Bank Ltd (ASX: NAB) and Wesfarmers Ltd (ASX: WES). The strength here is income consistency and active management.

The downside? Higher fees, around 0.72%, and the risk that active strategies don't always outperform.

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

Finally, the iShares S&P/ASX Dividend Opportunities ETF offers a slightly different flavour of income investing. This fund tracks an index of Australian companies expected to deliver above-average dividends, with a focus on sustainability and ESG screening.

Its management fee sits at around 0.23%, making it one of the cheaper options in the dividend ETF space.

Top holdings include Westpac Banking Corporation (ASX: WBC) and Fortescue Ltd (ASX: FMG). While its yield is typically lower than VHY, it offers a more balanced approach and slightly less concentration risk.

Foolish Takeaway

If you're chasing income in 2026, these ASX ETFs each bring something different to the table. VHY offers scale and strong yield, HVST targets consistent monthly income, and IHD delivers a lower-cost, diversified dividend strategy.

The right choice comes down to your goals — maximum yield, steady cash flow, or balanced income with lower fees.

The post 3 of the best ASX ETFs for income investors in 2026 appeared first on The Motley Fool Australia.

Investors who own Vanguard Australian Shares Index ETF (ASX: VAS) or other ETFs will receive their dividends on 20 April.

According to the schedule, the ex-dividend date is tomorrow, 1 April, and the record date is 2 April.

In order to be entitled to a dividend, new investors must buy the ETF before the ex-dividend date.

How much will ASX VAS investors get?

ASX VAS is the most popular ETF on the market with $24.21 billion in funds under management.

VAS ETF tracks the performance of the top 300 listed companies in Australia via the S&P/ASX 300 Index (ASX: XKO).

Vanguard will pay 84.788 cents per unit to ASX VAS investors on 20 April.

Here is a summary of the dividends that other Vanguard ETFs will pay to investors next month.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 81.1836 cents per unit.

Vanguard Diversified High Growth Index ETF (ASX: VDHG) will pay 64.7933 cents per unit. This ASX ETF provides exposure to 16,000 ASX and international shares.

The Vanguard MSCI Index International Shares ETF (ASX: VGS), which provides exposure to 1,500 stocks in developed nations outside Australia, will pay 39.576 cents per unit.

Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay 29.4897 cents per unit. This ASX ETF tracks the Bloomberg AusBond Composite 0+ Yr Index.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) will pay 50.5505 cents per unit. This ASX ETF allows investors exposure to bricks and mortar via the S&P/ASX 300 A-REIT Index.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars, will pay 27.0768 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM), which tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, will pay 177.1192 cents per unit.

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) will pay 43.9277 cents per unit. This ASX ETF tracks the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian dollars.

Want to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for ASX VAS and the other Vanguard ETFs listed above.

DRP elections must be made by 5pm on Thursday.

The post Own ASX VAS or other Vanguard ETFs? Dividends just announced appeared first on The Motley Fool Australia.

Between artificial intelligence disruption, escalating tensions in the Middle East, and higher interest rates, investors are being hit from all angles. The result? Volatility — and plenty of it.

So here's how to invest when the ASX seems to be spinning out of control?

Lean into defensives

When uncertainty rises, defensive stocks tend to shine.

These are businesses that deliver essential services. Demand doesn't disappear when the economy slows.

Take Telstra Group Ltd (ASX: TLS). People still need mobile and internet access, no matter what markets are doing. That gives Telstra steady earnings and reliable dividends.

Then there's Transurban Group (ASX: TCL). It owns major toll roads across Australia and the US. Traffic may fluctuate slightly, but these are critical infrastructure assets with long-term contracts.

Defensive shares won't always shoot the lights out. But they can help stabilise your portfolio when things get shaky.

Back quality businesses

Volatility is also a great filter. Lower-quality companies tend to struggle when conditions tighten. Strong businesses, on the other hand, prove their worth.

Look for companies with clear competitive advantages. Think strong brands, dominant market positions, or unique assets. Healthcare giant CSL Ltd (ASX: CSL) is an example of a quality ASX stock.

Balance sheets matter too. Companies with low debt and solid cash flow have more flexibility. They can keep investing — even when times are tough.

And don't forget earnings reliability. Consistent profits give investors confidence and reduce downside risk.

In uncertain markets, quality tends to outperform.

Use ETFs to smooth the ride

If picking individual stocks feels too risky right now, an exchange-traded fund (ETF) can help.

They offer instant diversification. That reduces the impact of any single company or sector.

Income-focused ETFs can provide a steady cash flow. Dividend strategies, in particular, tend to favour more mature, stable businesses. Vanguard Australian Shares High Yield ETF (ASX: VHY) is heavily weighted towards banks, miners, and energy giants like Woodside Energy Group Ltd (ASX: WDS)

Bond ETFs are another option. They typically behave differently to equities and can help cushion market swings. iShares Core Composite Bond ETF (ASX: IAF) has broad exposure to Australian government and corporate bonds and provides investors with quarterly income.

Blending equities with income and fixed income exposure can make a portfolio far more resilient.

Keep investing, just pace it

Timing the market during volatile periods is incredibly difficult.

That's where dollar-cost averaging comes in.

Instead of investing a lump sum, you spread your investments over time. You buy more when prices are low and less when they're high, without trying to predict the perfect entry point.

It's a simple way to invest through turmoil. And it works.

More importantly, it keeps you in the market. Sitting on the sidelines often means missing the recovery.

Foolish Takeaway

Yes, markets are volatile. There's a lot going on and plenty of reasons for uncertainty.

But that doesn't mean investors should freeze.

Focus on defensives. Prioritise quality. Use ETFs to diversify. And keep investing steadily.

Because in the long run, staying calm is often the biggest advantage of all.

The post ASX chaos? Here's how to invest smart, stay calm and win appeared first on The Motley Fool Australia.

Since the war began, ASX 200 shares have fallen 7.8%.

Most sectors, particularly mining, have been negatively impacted, while energy shares have soared due to higher oil, gas, and coal prices.

Earlier this week, we looked at the 5 most traded ASX 200 shares since the war began.

The trading data came from online investment platform Stake and covered the period from 2 March to 18 March.

Only one of the top 5 most traded shares was an energy company.

That alone was interesting, given energy shares are clearly the momentum trade of the moment, with the sector up 16% since 2 March.

The data also indicated another interesting and surprising trend — investors' desire to buy the dip.

Several of the most traded ASX 200 shares had experienced major annual declines, and the war had dragged them even lower.

Examples include CSL Ltd (ASX: CSL), Wisetech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Zip Co Ltd (ASX: ZIP) shares.

This is a trend we've seen before among Aussie investors.

Last year, Stake trading data showed Aussies bought the dip during the April 2025 rout after the US announced its reciprocal tariffs.

10 most traded ETFs since the war began

In this article, we take a look at the 10 most traded ASX exchange-traded funds (ETFs) on the Stake platform since the war began.

This data is highly relevant given that so many Aussie investors are choosing ETFs over individual shares in today's market.

According to the latest market data, Aussies have a record $333 billion invested across 426 ETFs on the market today.

Here is the data from Stake. Remember, this data only shows volume of activity, so we don't know the split between purchases and sales.

However, we can assume that the fifth-ranked Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO) is buy-tilted.

ASX OOO has surged 47% in 30 days, and provides exposure to US West Texas Intermediate (WTI) crude oil futures (not the spot price).

We can also assume some profit-taking with ASX gold and silver ETFs, given the drop in gold and silver prices this month.

The gold price has fallen 18%, and silver has dropped 24% since the war in Iran began.

However, gold and silver remain 42% and 98% higher, respectively, over 12 months.

Source: Stake

The post Which ASX ETFs have Aussies traded most since the Iran war began? appeared first on The Motley Fool Australia.

Right now, a standard five-year term deposit from Commonwealth Bank of Australia (ASX: CBA) is offering around 4%. That is the best level savers have seen for quite some time and may appeal to those looking for certainty.

However, when you factor in inflation, the real return looks far less compelling.

Inflation is still eating into returns

This week, the Australian Bureau of Statistics revealed that inflation rose 3.7% over the 12 months to February 2026.

That means a 4% term deposit is only just keeping pace with rising prices. In real terms, investors are barely growing their wealth.

For those who are highly risk averse, this trade-off may be acceptable. But for investors willing to take on some volatility, there may be better options available.

ASX dividend shares can offer more income

One of the key advantages of ASX dividend shares is their ability to deliver higher income yields.

Many established companies on the ASX offer dividend yields above 4%, with some comfortably exceeding this level depending on market conditions.

In addition, these dividends can grow over time as company earnings increase. This provides a level of income growth that term deposits simply cannot match.

ETFs make diversification easy

For those who prefer not to pick individual ASX dividend shares, the Vanguard Australian Shares High Yield ETF (ASX: VHY) offers a simple alternative.

This fund provides exposure to a broad portfolio of high-yielding ASX shares, helping to spread risk across multiple companies and sectors.

It has historically delivered a yield above 4%, making it competitive with term deposits from an income perspective.

But the key difference is total return.

Over the past five years, the ETF has generated a total return of 13.45% per annum. While there is no guarantee this will continue, it highlights the potential for both income and capital growth.

Capital growth makes the difference

The biggest advantage ASX dividend shares have over term deposits is the potential for capital appreciation.

While a term deposit will return your original capital plus interest, ASX shares can increase in value over time as businesses grow.

This means investors are not just relying on income. They also benefit from rising share prices, which can significantly boost long-term returns.

For investors focused on building wealth while generating income, this combination can make ASX dividend shares a more compelling option than term deposits.

The post Why ASX dividend shares could still be better than term deposits appeared first on The Motley Fool Australia.