The ASX is a fantastic place to invest in. But the US markets just offer some things that the ASX doesn't. As such, I like to proverbially pick apples from both trees when building my portfolio.

So today, let's discuss two of the US ETFs that I currently own, and why.

2 US ETFs that I buy for my ASX stock portfolio

iShares Core Dividend Growth ETF (NYSE: DGRO)

First up, we have this dividend growth ETF from familiar ASX fund provider iShares. Unlike the ASX, the US isn't exactly known for its heavy-hitting dividend stocks. However, US stocks tend to have far more impressive dividend growth streaks than ASX companies, though, with the 'States hosting a number of companies with 50-year-plus track records of annual dividend pay rises.

This ETF holds some of those stocks, such as Johnson & Johnson, Coca-Cola, and Procter & Gamble. But it also holds a number of dividend 'up-and-comers', including Apple, Visa, and Microsoft.

Most of DGRO's holdings have been steadily raising their dividends for many years. As such, the US ETF's annual dividends (which are paid quarterly) are also steadily rising.

I regard this ETF as a portal into some of the US' best dividend stocks. Together with the Schwab US Dividend Equity ETF (NYSE: SCHD), I intend to hold DGRO for many, many years, and (hopefully) enjoy the constantly rising dividend payouts along the way.

Schwab US Large-Cap Growth ETF (NYSE: SCHG)

As most ASX investors would know, the United States is home to the best tech stocks on the planet. No other market can rival the likes of Apple, Microsoft, Amazon, Netflix, Alphabet, NVIDIA and their peers in terms of scope, scale and global dominance of their respective markets.

I used to own the BetaShares Nasdaq 100 ETF (ASX: NDQ) for broad exposure to large-cap US growth stocks like the ones listed above. However, I swapped out this ASX ETF for a US ETF a few months ago. That US ETF is the Schwab US Large-Cap Growth ETF.

This fund gives me a similar level of exposure to the largest and most successful growth companies in the United States. But instead of charging me 0.48% per annum for the privilege, SCHG only asks 0.04% per annum, more than ten times cheaper. That fee difference can make a big impact on one's overall returns over a long period of time.

SCHG's portfolio contains all of the stocks listed above, as well as Mastercard, Costco, Palantir Technologies and Booking Holdings. It adds some pleasing diversification to my portfolio, as well as high potential returns going forward. I was happy to make the swap.

The post Here's why I own these 2 US ETFs in my portfolio appeared first on The Motley Fool Australia.

Even if you're not seeking to maximise your dividend income today, chances are you are hoping that your ASX share portfolio will one day let you retire comfortably by providing you with a stream of (preferably fully franked) passive dividend income.

That's certainly the case with my own stock portfolio.

I've been investing in ASX shares for many years now, and have been fortunate enough to build up a decent portfolio. I do receive some dividends from this portfolio, but not a meaningful stream.

Many of my largest investments are in companies that produce limited or no income. That includes Tesla, Amazon, Apple and Duolingo.

In fact, a recent analysis of my share portfolio informed me that its dividend yield is sitting at an unimpressive 1.9% or so.

This doesn't bother me. I would love to be in a position to retire tomorrow, but the reality is that I'm a long way from being there (sorry, you'll have to keep reading my articles for a while yet). As such, I am comfortable that my portfolio is (hopefully) structured to maximise overall returns rather than just a hefty stream of dividend income.

However, that doesn't mean I'm not trying to grow my dividend income meaningfully. As long as an investment offers a healthy growth runway, I will happily accept any dividend income it pays me.

In fact, I hope to earn $20,000 in annual dividend income from my ASX shares within the next few years.

Getting to $20,000 in annual passive income

If I wished, I could sell all of my investments, put the proceeds into bank stocks and other big dividend payers, and probably get close to $20k a year in dividend income today. However, I think I'll be far better off in the long run by sticking to my current strategy of investing in companies that offer growth as well as income.

To hit this $20k goal, I am investing in a handful of ASX shares that have demonstrated an ability to rapidly raise their dividend payments every year and look likely to be able to continue to do so.

Continued investment and reinvestment of dividends, alongside regular dividend increases from the companies themselves, is how I'll (eventually) get there.

The investments I've prioritised for this endeavour include Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Mastercard, Visa, Microsoft, Meta Platforms and Alphabet.

Let's use Soul Patts as an example. For one, this company has increased its annual dividend every year for almost 25 years. But over the past three financial years (FY22-24), its dividend has increased at an average compounded annual rate of 15.3%.

If this growth continues for the next three years and beyond, it will do a lot of the legwork in boosting my portfolio's income.

I have also recently established positions in American exchange-traded funds (ETFs) that prioritise selecting companies that have shown healthy dividend growth in the past. These include the Schwab US Dividend Equity ETF (NYSE: SCHD) and the iShares Core Dividend Growth ETF (NYSE: DGRO).

By continuously investing in these top-tier investments, I am hoping that my annual dividend income will continue to snowball and hit $20,000 per year in the next few years. I'll let you know how it goes.

The post Here's how I'm trying to build up my ASX share portfolio to earn $20,000 passive income each year appeared first on The Motley Fool Australia.