Wouldn't it be great if you could build an income portfolio filled with quality dividend shares without any effort?
Well, I have good news for you. There are a number of exchange traded funds (ETFs) out there that have been designed to help income investors.
Two that could be worth considering are listed below. Here's what you need to know about them:
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BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The first ETF for income investors to consider right now is the BetaShares S&P 500 Yield Maximiser.
This ETF aims to generate attractive quarterly income for investors and reduce the volatility of portfolio returns at the same time.
In order to deliver on this objective, BetaShares has implemented an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index. This index is home to 500 of the largest companies listed on Wall Street.
This means you'll be investing in dividend-paying companies such as Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and United Health.
The BetaShares S&P 500 Yield Maximiser's units are currently providing investors with a 6.4% distribution yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Another ETF for income investors to look at is the Vanguard Australian Shares High Yield ETF.
This ETF provides investors with exposure to ASX-listed shares that have higher than average forecast dividends.
But rather than just loading up on banks and miners, the ETF restricts the proportion invested in any one industry to 40% and 10% for any one company. This ensures that income investors are holding a diverse collection of dividend shares.
Included in the fund are income investor favourites BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).
The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.8%.
