If you're not a fan of stock picking, then exchange traded funds (ETFs) are here to make your life easier. That's because they allow you to invest in a group of shares through a single investment.

And with ETFs catering for every occasion, there's likely to be something out there that fits with your investment goals.

For example, if you're looking to generate income in retirement, then the ETF listed below could be a great option for you.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF could be a top option for a retirement portfolio. That's because this popular ETF provides investors with easy access to ASX listed shares that have higher than average forecast dividends.

Vanguard notes that instead of looking backwards, it relies on broker estimates to build a portfolio of shares that are expected to be among the biggest dividend payers in the next 12 months. It explains:

VHY is built smarter. Unlike most high yield equity ETFs, VHY uses forward looking broker estimates to determine which securities go in the fund. This ensures VHY can look past historical information and capture the securities that are forecast to pay a higher yield.

The fund manager also has diversity in mind when building its portfolio. It limits 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 a number of income investor favourites. This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS). Australian Real Estate Investment Trusts (A-REITS) are not included in the ETF.

At the time of writing, the Vanguard Australian Shares High Yield ETF was trading with an estimated forward dividend yield of 5.2%.

The post Buy this ASX ETF for big retirement income appeared first on The Motley Fool Australia.

Exchange traded funds (ETFs) don't just allow you to invest in certain sectors and indices, they also provide investors with the opportunity to focus on particularly strategies.

One of those is income. But which ASX ETFs might be best for income investors?

While best is subjective, listed below are the ETFs that offer the biggest dividend yields right now.

To be included, I have only selected ETFs that have at least $1 billion in funds under management (FUM). Here they are:

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

The iShares Core S&P/ASX 200 ETF is one of the largest ETFs on the Australian share market with $4 billion of FUM. It provides investors with low-cost access to the 200 largest companies on the ASX in a single fund.

The ETF pays dividends quarterly and based on its current net asset value, trades with a trailing 6.1% dividend yield and 74% franking.

Vanguard Australian Property Securities Index ETF (ASX: VAP)

The Vanguard Australian Property Securities Index ETF seeks to track the return of the S&P/ASX 300 A-REIT Index before fees, expenses, and tax. Vanguard notes that the property sectors in which the ETF invests include retail, office, industrial and diversified. It believes the fund offers potential long-term capital growth and tax-effective income that may include a tax-deferred component.

The Vanguard Australian Property Securities Index ETF currently trades with a 4.3% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

As its name implies, the Vanguard Australian Shares High Yield ETF gives investors exposure to a diverse group of ASX shares that have higher forecast dividend yields relative to the rest of the market.

At present, with 98.2% franking, the Vanguard Australian Shares High Yield ETF trades with an estimated forward grossed up dividend yield of 5.8%.

Vanguard Australian Shares Index ETF (ASX: VAS)

Finally, the Vanguard Australian Shares Index ETF is the largest on the ASX with $12 billion of FUM. It has been designed to mirror the S&P/ASX 300 index. This means investors will be buying a piece of large companies such as Telstra Corporation Ltd (ASX: TLS) and smaller companies like Accent Group Ltd (ASX: AX1) and Dicker Data Ltd (ASX: DDR).

At present, the ETF offers investors a dividend yield of 4.2% with 89% franking.

The post Dividend dessert: Which ASX ETFs are the sweetest for a passive income? appeared first on The Motley Fool Australia.

If you're looking for a passive income then exchange traded funds (ETFs) could be used to achieve this goal.

For example, the two ASX-listed ETFs named below could be top candidates as they have been designed to provide investors with above-average dividend yields.

Here's what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for income investors to look at is the BetaShares S&P 500 Yield Maximiser.

It aims to provide income investors with attractive quarterly income and low volatility via an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index on Wall Street.

Among the shares listed on the S&P 500 index are dividend-paying giants such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.

However, true to its name, this clever strategy allows the ETF to maximise the yields on offer with the stocks to create a yield that is greater than you would normally receive from the index.

For example, at present, the BetaShares S&P 500 Yield Maximiser's units were offering investors a 7.9% distribution yield.

Based on the above, a $100,000 investment in this ETF would generate $7,900 of passive income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ETF that could give you a passive income boost is the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with exposure to a diverse group of ASX shares that have higher forecast dividend yields relative to the rest of the market.

At present there are 74 ASX shares included in the portfolio. These include giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.6%.

This means that a $100,000 investment could generate $5,600 of passive income for investors.

The post These ETFs could give ASX investors a passive income appeared first on The Motley Fool Australia.

The good thing about exchange traded funds (ETFs) is that they offer investors ways to invest in groups of shares that fit their investment objectives.

For example, the two ETFs listed below provide investors with access to two very different groups of shares. One could be suitable for income investors, whereas the other may suit investors looking for growth.

Here's what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

Investors that are looking for growth options might want to consider the BetaShares Global Cybersecurity ETF.

This ETF gives investors access to the leading players in the global cybersecurity sector. This includes high quality, growing companies such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

As you saw with the Optus and Medibank Private Ltd (ASX: MPL) cyberattacks last year, cybersecurity is becoming incredibly important for businesses and consumers. With sensitive information being accessed by hackers, both companies are facing major reputational damage and potential penalties and compensation.

And with cyberattacks expected to increase in the future, demand for cybersecurity services is forecast to grow materially over the coming years. This bodes well for this ETF and its holdings.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you're looking for income options, the Vanguard Australian Shares High Yield ETF could be a top option.

As you might have guessed from its name, this ETF provides investors with exposure to ASX-listed shares that have higher than average forecast dividends. This is a diverse group of shares, with Vanguard ensuring that you don't get lumped with just miners or banks.

Among the shares included in the fund are Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC). The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.6%.

The post Buy these ETFs for passive income and growth appeared first on The Motley Fool Australia.

Is the Vanguard Australian Shares High Yield ETF (ASX: VHY) a good buy for passive income from ASX dividend shares?

You'd think so. After all, this exchange-traded fund (ETF) offers investors a 'high yield' in its very name. But appearances can sometimes be deceiving. So let's break down the Vanguard High Yield ETF and see if it puts its money where its name is.

So this ETF from provider Vanguard aims to provide investors with a high level of income by holding ASX shares that pay fat and often fully franked dividend payments.

If an ETF holds a dividend-paying share in its underlying portfolio, it is required to pass on any dividend income it receives straight to its investors. These payments are called distributions.

The Vanguard High Yield ETF currently has 73 ASX dividend shares in its underlying portfolio. These, according to the provider, are selected based on their "higher dividend forecasts relative to other ASX-listed companies". The fund takes into account future dividend potential, as well as a company's present dividend prowess.

On the latest data, some of this ETF's top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Woodside Energy Group Ltd (ASX: WDS), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp (ASX: WBC).

But let's get down to the meat and potatoes.

What kind of dividends does the Vanguard High Yield ETF offer?

So the Vanguard High yield ETF pays out quarterly dividend distributions. This is a little unusual in itself since most ASX shares pay out a dividend every six months. So no doubt some investors will appreciate the more frequent payment schedule.

This ETF's last four dividend distributions came to an annual total of $4.15 in distributions per unit. At the current Vanguard High Yield ETF unit price of $68.94 (at the time of writing), this gives the fund a trailing yield of 6.02%.

For an investor seeking passive income from ASX dividend shares, this high yield is a pretty good start. To illustrate, it's a more lucrative yield than what is being offered by any of the ASX big four banks today.

Distributions from this ETF also tend to come very close to fully franked too, which would lift this yield up to approximately 8.5% grossed-up.

The Vanguard Australian Shares High Yield ETF charges a management fee of 0.25% per annum.

The post Is the Vanguard Australian Shares High Yield ETF (VHY) a good buy for passive income? appeared first on The Motley Fool Australia.

If you're looking for an easy way to invest, then exchange traded funds (ETFs) could be worth considering.

The good news is that there are plenty of ETFs to choose from on the Australian share market.

Two that offer investors very different investment options are listed below. Here's why they could be worth considering:

BetaShares Global Cybersecurity ETF (ASX: HACK)

If you're a fan of tech shares, then the BetaShares Global Cybersecurity ETF could be worth considering.

This ETF provides investors with exposure to the leaders in the global cybersecurity sector.

With cyberattacks becoming a regular occurrence, demand for cybersecurity services is expected to increase strongly over the next decade. And with the Australian share market having little exposure to this area of the tech sector, this ETF is a great way for investors to get access to it.

Among the companies included in this ETF are industry leaders such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If it's dividends that you're looking for, then the Vanguard Australian Shares High Yield ETF could be the one for you.

That's because this ETF provides investors with an easy way to buy a collection of ASX-listed shares that have higher than average forecast dividends.

And while banks and miners often offer the biggest yields, this ETF ensures that you're not purely going to end up with a portfolio filled with them. It limits the proportion invested in any one industry and company in order to maintain a diverse portfolio.

Among the shares included in the fund are giants 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 5.6%.

The post Growth and income: 2 excellent ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

If you're not a fan of stock picking, then don't let that stop you from investing.

That's because exchange traded funds (ETFs) are here to make your life easier by allowing you to invest in a group of shares through a single investment.

The even better news is that there are ETFs for every occasion. Whether you want access to tech stocks, whole indices, or income, there's something out there for you.

With that in mind, two that could be worth considering for a retirement portfolio are listed below. Here's what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for retirees to consider is the BetaShares S&P 500 Yield Maximiser.

It could be a top option for a retirement portfolio as it has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns at the same time.

It aims to do this through the implementation of an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index. These are 500 of the largest companies listed on Wall Street and includes dividend-payers such as Apple, Bank of America, Exxon Mobil, and Walmart.

The BetaShares S&P 500 Yield Maximiser's units currently provide investors with a whopping 9.2% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option to consider for a retirement portfolio is the Vanguard Australian Shares High Yield ETF.

The ETF provides investors with low-cost exposure to companies listed on the Australian stock exchange that have higher forecast dividends relative to other ASX-listed companies.

This excludes Australian Real Estate Investment Trusts (A-REITS) and is done with diversification in mind. Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company.

Among the companies included in the fund are income investor favourites such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).

The Vanguard Australian Shares High Yield ETF is currently trading with an estimated forward dividend yield of 5.6%.

The post Buy these ASX ETFs for retirement income appeared first on The Motley Fool Australia.

Wouldn't it be great if you could build an income portfolio filled with quality dividend shares without any effort?

Well, here is some good news for you. There are a number of exchange traded funds (ETFs) listed on the Australian share market that have been designed to help income investors.

One that could be worth considering is listed below. Here's what you need to know about this popular ETF:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A top ETF for income investors to look at buying this month is the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with easy access to ASX listed shares that have higher than average forecast dividends. Vanguard notes:

VHY is built smarter. Unlike most high yield equity ETFs, VHY uses forward looking broker estimates to determine which securities go in the fund. This ensures VHY can look past historical information and capture the securities that are forecast to pay a higher yield.

Vanguard also has diversity in mind when building its portfolio. The fund manager 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 and not just a group of coal miners.

Included in the fund are a number of income investor favourites. This includes mining behemoth BHP Group Ltd (ASX: BHP), Australia's largest bank Commonwealth Bank of Australia (ASX: CBA), and telco giant Telstra Corporation Ltd (ASX: TLS). Australian Real Estate Investment Trusts (A-REITS) are excluded from the index.

At the time of writing, the Vanguard Australian Shares High Yield ETF was trading with an estimated forward dividend yield of 5.6%.

The post Here's a top ETF to buy for a passive income boost appeared first on The Motley Fool Australia.

It's been a relatively rough 12 months for ASX shares and the share market. In 2022, the S&P/ASX 200 Index (ASX: XJO) went backwards by around 5.5%. As such, it was always going to be a tough year for ASX exchange-traded funds (ETFs), such as those run by provider Vanguard. 

So let's look at the best-performing Vanguard ETFs over the past 12 months.

Of all Vanguard's ETFs, only four managed a positive return in the 12 months to 31 December 2022. Let's see which ones they were.  

Four Vanguard ETFs that delivered a positive return last year

Vanguard Infrastructure Index ETF (ASX: VBLD)

This infrastructure-based ETF managed to eke out a gain of 0.2% in 2022, including fees and dividend distributions. The Vanguard Infrastructure ETF holds companies such as power generators, railway companies, pipeline operators and telcos.

It's heavily weighted towards the US markets, with almost 70% of its holdings hailing from America. These include NextEra Energy Inc, Union Pacific Corp and Canadian National Railway Co.

This ETF has returned an average of 8.16% per annum since its inception in 2018. It charges a management fee of 0.47% per annum:

Vanguard Global Value Equity Active ETF (ASX: VVLU)

This ETF is a bit of a different beast, being an active ETF rather than an index fund. It uses modelling to build a portfolio of undervalued shares from around the world.

Again, the US is the most dominant market in this fund, but shares are drawn from countries as diverse as Japan, Canada, Israel and Hong Kong. Some of its current holdings include AT&T Inc, Meta Platforms Inc and Exxon Mobil Corp.

The Vanguard Global Value ETF returned 1.34% over 2022, after charging the annual management fee of 0.28%. Since its inception in 2018, this ETF has delivered an average annual return of 7.1% per annum.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC)

Back to an index fund now, and this ASX-based ETF tracks the largest 20 companies on the Australian share market.

Naturally, banks and miners like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are dominant here, with financials and materials shares accounting for more than 63% of the total portfolio.

Even so, this ETF was able to give investors a decent return of 4.53% last year, thanks in most part to some hefty dividend distributions. This ETF charges 0.2% per annum and has returned an average of 8.01% per annum since its inception in 2011.

Vanguard Australian Shares High Yield ETF (ASX: VHY) 

Last but certainly not least in terms of performance in 2022, we have the Vanguard High Yield ETF.

This fund invests in a basket of dividend-paying shares from the ASX, with the ETF currently invested in 74 income shares. These come from most corners of the ASX, but banks and miners are still quite dominant.

The Vanguard High Yield ETF hit it out of the park last year, delivering investors a dividend-driven return of 8.6% in 2022. This makes it Vanguard's most successful ASX ETF of last year.

This fund charges a fee of 0.25% per annum and has given investors an average return of 8.76% per annum since its inception in 2011. 

The post Which of the Vanguard ASX ETFs has performed best over the past year? appeared first on The Motley Fool Australia.

For example, if you're not a fan of stock picking but want to build an income portfolio, there are a number of ETFs that you could consider such as the BetaShares S&P 500 Yield Maximiser (ASX: UMAX) and the Vanguard Australian Shares High Yield ETF (ASX: VHY)

The former uses a clever equity income investment strategy over a portfolio of shares comprising the S&P 500 Index on Wall Street to generate a greater-than-average dividend yield from the constituents of the index.

At last count, the BetaShares S&P 500 Yield Maximiser was providing investors with a dividend yield of 9.2%.

Whereas the latter, as you might have guessed from its name, gives investors exposure to a collection of the highest-yielding ASX shares. Though, it is worth noting that it does this with diversification in mind so that you don't end up with a portfolio filled with coal and iron ore miners.

According to Vanguard, it currently trades with a forecast dividend yield of 5.4%.

How much would I need to invest for $4,000 of income?

If you were aiming for $4,000 of monthly passive income from these ETFs, you would need to invest a sizeable sum across them both.

That's because to earn this level of income per month, you'll need to generate $48,000 in dividends over 12 months.

From the Vanguard Australian Shares High Yield ETF, you would need to put a sizeable $444,000 into the fund to earn $24,000 annually ($444,000 * 5.4% = $24,000).

Fortunately, you wouldn't need to make as great an investment in the BetaShares S&P 500 Yield Maximiser ETF right now thanks to its huge yield. An investment of approximately $260,000 would yield $24,000 in dividends annually for investors ($260,000 * 9.2% = $24,000).

That means a total investment of just over $700,000 could potentially yield you $48,000 annually and $4,000 monthly in passive income.

What if you don't have $700,000?

Unfortunately, very few people are lucky enough to have this amount of money free to invest in the share market.

But if you have time on your side, you have the potential to get there by making consistent investments into the share market over the long term.

While past performance is no guarantee of future returns, according to Fidelity, the Australian share market has returned 9.6% per annum over the last 30 years. I would be disappointed if it didn't achieve similar returns over the next three decades.

This means that if you invested $4,200 per annum over 30 years and earned the market return, your investments would have grown to $700,000. After which, you could switch your focus to income, and sit back and watch the dividends flow in!

The post How I'd generate a $4,000 monthly passive income using only ASX ETFs appeared first on The Motley Fool Australia.

If the latest monthly CPI data is anything to go by, rising inflation is still proving stubbornly difficult to quash. As a result, many Aussies are really starting to feel the pinch of surging prices across life's everyday essentials. 

Yes, wages have also been climbing. But for most of those fortunate enough to have received a boost to their take-home pay, this has generally been eradicated (and then some!) by the need to shell out more at the checkout.

So, what's the solution? Start a side hustle? Take a second job? Hit up the boss for a pay rise?

If you're looking for a slightly less labour-intensive way to boost your income, ASX dividend shares could be the answer. Unlike investment properties, which can take considerable time and effort to maintain, dividend stocks have the potential to provide a truly passive income stream.

So sit back and relax! Because we asked our Foolish contributors which ASX dividend shares they reckon are worth buying with your hard-earned cash right now. Here's what the team came up with:

5 best ASX dividend shares for January 2023 (smallest to largest)

Universal Store Holdings Ltd (ASX: UNI), $394.34 million

Vanguard Australian Shares High Yield ETF (ASX: VHY), $2.68 billion

Sonic Healthcare Limited (ASX: SHL), $14.65 billion

ANZ Group Holdings Ltd (ASX: ANZ), $71.24 billion

Westpac Banking Corp (ASX: WBC), $82.15 billion

(Market capitalisations as at market close on 11 January 2023)

Why our Foolish writers love these ASX dividend shares

Universal Store Holdings Ltd

What it does: Universal is a retailer of clothing and accessories aimed at dressing Australia's youth. The company operates 80 stores across Australia, as well as two separately-branded online stores, and its newly acquired Thrills brand.

By Brooke Cooper: The Universal Store share price was hit hard, alongside those of many retailers, in 2022. The stock fell 25% over the 12 months ended 31 December.

However, as Goldman Sachs notes, the economic headwinds that spurred much of the downturn among ASX consumer dictionary shares are unlikely to majorly impact Universal's target market. Thus, I believe the stock's struggles may have brought about a buying opportunity.

Universal Store shares have paid 21.5 cents of dividends over the last 12 months and are currently trading at $5.14. That leaves the stock boasting a 4.17% dividend yield.

Motley Fool contributor Brooke Cooper does not own shares of Universal Store Holdings Ltd.

Vanguard Australian Shares High Yield ETF

What it does: The Vanguard Australian Shares High Yield ETF is an exchange-traded fund (ETF) that invests in a basket of ASX-listed dividend-paying shares.

By Sebastian Bowen: This ETF from reputable provider Vanguard aims to provide investors with high levels of dividend income and franking credits. It holds a relatively concentrated basket of only ASX dividend shares.

These mostly consist of the blue-chip shares income investors know and love, spread across different industries. They include banking and finance, mining, energy, infrastructure, and consumer staples.

As such, this investment could well be worth considering for income investors in 2023 who are seeking a diversified, income-producing investment in one single and simple fund.

This ETF also pays out dividend distributions quarterly, which some investors might appreciate. On recent pricing, the Vanguard Australian Shares High Yield ETF offered a trailing distribution yield of more than 6%.

Motley Fool contributor Sebastian Bowen does not own units of the Vanguard Australian Shares High Yield ETF.

Sonic Healthcare Limited

What it does: Sonic is a global pathology healthcare business that operates in a number of countries including Australia, the USA, Germany, the UK, and Switzerland.

By Tristan Harrison: Sonic Healthcare has a stated progressive dividend policy. It has increased its dividend every year for a decade.

According to Commsec, the company is expected to pay an annual dividend per share of $1.04 in FY24. This translates to a forward, grossed-up dividend yield of almost 5%.

Sonic management points to "strong underlying industry drivers and market share" with a backlog of testing postponed during the pandemic. This implies solid, non-COVID testing revenue growth over the short-to-medium term.

I like the company's recent acquisitions, including the 19.9% stake it bought in Microba Pty Ltd (ASX: MAP). I believe this is a good use of the company's COVID-testing cash flow and can help grow its profit and dividend in future years.

Motley Fool contributor Tristan Harrison does not own shares of Sonic Healthcare Limited.

ANZ Group Holdings Ltd

What it does: ANZ is the smallest of the big four Australian banks, servicing both Australia and New Zealand across its retail, commercial, and institutional divisions. As of September 2022, the bank held $283.1 billion worth of Australian home loans on its balance sheet.

By Mitchell Lawler: The market appears to be discounting ANZ shares compared to its peers. Right now, big blue is trading at roughly 10 times earnings.

In comparison, the rest of the banking giants fetch 14 to 19 multiples. Perhaps investors aren't keen on the bank's expenses chewing up 45% of its revenue – the highest of the big four.

However, I'm of the opinion the proposed merger between ANZ and Suncorp Group Ltd (ASX: SUN) will go through… eventually. The mergers of the past – Commonwealth Bank of Australia (ASX: CBA) and Bankwest, Westpac and St. George – have set precedents that will be hard for the ACCC to argue against.

A merger of ANZ and Suncorp would help create business simplification and improved pricing power. I believe this would provide justification for ANZ shares to trade more in line with the industry average.

In my opinion, ANZ shares offer an attractive blend of income (6.14% yield currently) and potential share price growth.

Motley Fool contributor Mitchell Lawler does not own shares of ANZ Group Holdings Ltd but does own shares of Commonwealth Bank of Australia.

Westpac Banking Corp

What it does: Westpac is one of Australia's big four banks. As well as the eponymous Westpac brand, it operates the Bank SA, Bank of Melbourne, Rams, and St George brands.

By James Mickleboro: I think Westpac could be a top dividend option in January. Thanks to the positive impact of rising interest rates on margins and the bank's bold cost-reduction target, I feel that Australia's oldest bank is well-placed to deliver solid earnings and dividend growth in the coming years.

I'm not alone in this view. Goldman Sachs is forecasting fully-franked dividends per share of $1.48 in FY 2023, $1.59 in FY 2024, and $1.69 in FY 2025. This represents yields of 6.3%, 6.8%, and 7.2%, respectively, based on the current share price. Goldman also sees plenty of upside with its conviction buy rating and $27.60 price target.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corp.

The post Top ASX dividend shares to buy in January 2023 appeared first on The Motley Fool Australia.

For example, if you're wanting to build an income portfolio, you could buy the ETFs named below that have been designed to provide investors with exposure to a collection of dividend shares.

Here's what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for income investors to look at is the BetaShares S&P 500 Yield Maximiser.

This ETF has been designed to provide income investors with attractive quarterly income and low volatility.

BetaShares aims to do this via an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index on Wall Street. This clever strategy allows the ETF to generate a greater than average yield from the constituents of the index.

In fact, at the last count, the BetaShares S&P 500 Yield Maximiser's units were offering investors an 8.7% distribution yield.

Among the shares listed on the S&P 500 index are dividend-paying giants such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you're wanting to invest locally then income investors might want to look at the Vanguard Australian Shares High Yield ETF.

This ETF focuses on investing in a collection of ASX shares that have higher forecast dividends relative to the rest of the market.

And it does this with diversification in mind. The Vanguard Australian Shares High Yield ETF restricts the proportion invested in any one industry to 40% and 10% for any one company.

At the last count, there were 70 ASX shares included in the portfolio. These include giants such as Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.4%.

The post Here are the ASX ETFs to buy for a passive income boost in 2023 appeared first on The Motley Fool Australia.

The reason for this is that ETFs allow you to invest in a large group of shares through a single investment.

If that sounds good to you, then you may want to take a look at the two ETFs listed below that could be top options in January:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ETF for investors to look at is the Vanguard Australian Shares High Yield ETF. It could be a top option for anyone looking for a source of income in 2023.

That's because 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 or miners, which traditionally pay some of the biggest dividends on the Australian share market, the ETF restricts the proportion invested in any one industry to 40%. This means that income investors are holding a diverse collection of dividend shares.

Among the shares included in the fund are giants Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.4%.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Another ETF for investors to consider next month is the Vanguard US Total Market Shares Index ETF.

If you're wanting to invest in US giants like Amazon and Apple, this ETF could be the one for you. That's because this ETF provides investors with exposure to a massive 4,000 US listed shares.

Vanguard highlights that this allows investors to participate in the long-term growth potential of US listed companies. It also sees it as a top option for investors seeking international diversification.

As well as Amazon and Apple, you'll be buying a slice of iconic US companies such as Boeing, JP Morgan, Starbucks, and Walmart.

The post 2 excellent ETFs for ASX investors in January appeared first on The Motley Fool Australia.

Well, depending on what your investment objective is, the two ETFs listed below could be worth considering. Here's what you need to know:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you're looking for an ETF to buy and hold then the VanEck Vectors Morningstar Wide Moat ETF could be the one.

This popular ETF has been a strong performer over the last decade thanks to its focus on fairly priced US companies with sustainable competitive advantages or moats. These are qualities that Warren Buffett famously looks for when making investment. And given his success over multiple decades, it is hard to argue against the strategy.

VanEck Vectors Morningstar Wide Moat ETF regularly changes its constituents because it removes stocks when they become overvalued. But generally, there will be approximately 50 shares in the fund at any given time. At present, this includes Adobe, Alphabet, Amazon, Boeing, Microsoft, Salesforce, and Walt Disney.

Over the last decade, the index that it tracks has outperformed the market with an average annual return of 19.2%. This would have turned a $10,000 investment into almost $60,000 today.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If income is your aim then you might want to consider the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with low-cost exposure to ASX-listed companies that have higher forecast dividends relative to other ASX-listed companies.

The good news is that the ETF has been made with diversification front of mind so you don't end up with a portfolio filled with coal and iron ore miners.

Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company. Furthermore, Australian Real Estate Investment Trusts (A-REITS) are excluded from the index, so there's limited exposure to the property market.

Among the ~70 shares included in the portfolio you'll find giants including BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

Finally, as you would expect, the dividend yield on offer is notably better than average. At present, the Vanguard Australian Shares High Yield ETF trades with an estimated forward dividend yield of 5.5%.

The post 2 of the best ETFs for ASX investors to own in 2023 appeared first on The Motley Fool Australia.

For example, if you want to build a passive income, you could buy the ASX-listed ETFs named below that have been designed to provide investors with generous dividend yields. Here's what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for investors to look at for a passive income is the BetaShares S&P 500 Yield Maximiser.

This ETF has been designed to provide income investors with attractive quarterly income with low volatility.

BetaShares aims to achieve this by implementing an equity income investment strategy over a portfolio of shares comprising the famous S&P 500 Index on Wall Street.

This index is home to 500 of the largest companies listed on Wall Street and includes dividend-paying giants such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.

At the last count, the BetaShares S&P 500 Yield Maximiser's units were offering investors an 8.7% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ETF for investors to look at is the Vanguard Australian Shares High Yield ETF.

As its name implies, this ETF provides investors with exposure to a group of ASX shares that have higher forecast dividends relative to the rest of the market.

The good news is that this is done with diversification in mind. The Vanguard Australian Shares High Yield ETF restricts the proportion invested in any one industry to 40% and 10% for any one company.

At present there are 70 ASX shares included in the portfolio. These include giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 6%.

The post The ASX-listed ETFs to buy for a passive income in 2023 appeared first on The Motley Fool Australia.

Luckily for would-be passive income earners, shares are an ideal investment vehicle to help you build up passive income and move closer toward financial independence. Not only do many ASX shares pay dividends (a form of passive income), but many also issue franking credits as well, which can also help to boost your income even further.

$20 a week is a reasonable target for most Australians to invest each week. Hopefully, that won't have a meaningful impact on a standard of living and can be repeated each week.

$20 a week equates to roughly $80 a month, or more accurately, $1,040 a year.

How to get passive income from ASX dividend shares (or ETFs)

If I wished to build up a passive income stream from ASX shares, the first investment I would look to is an exchange-traded fund (ETF) specialising in dividend income. One such fund is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

This ETF deliberately targets a stream of passive dividend income for its investors. It does so by only holding high-yielding ASX dividend shares in its portfolio, from which it can pass income and franking onto its investors.

Some of its current top holdings include dividend beasts like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS) and National Australia Bank Ltd (ASX: NAB).

So over the past 12 months, this Vanguard ETF has forked out distributions worth a total of $3.84 per share. At today's unit price of $69.28 (at the time of writing) for the Vanguard Australian Shares High Yield ETF, that gives it a healthy distribution yield of 5.54%.

It's worth mentioning here that Vanguard ETFs offer zero brokerage fees and a low minimum investment amount. Other ASX share investments will differ, so be mindful of regular brokerage fees potentially impacting your returns.

By the numbers…

If we invested $20 a week in the Vanguard Australian Shares High Yield ETF for a whole year, a hypothetical investor could pull around $57.62 in dividend income by the end of the year. If that investor spent 10 years putting $20 a week away, this would rise to $576.20 in dividend income per year. That would be $1,152.40 a year after 20 years.

If our investor reinvested their dividends each year, this would get a boost up to approximately $1,212.97 in dividend income per year.

Of course, this assumes that the dividend distributions from the high-yield Vanguard ETF remain the same over this two-decade period, which is highly unlikely.

Chances are that this 20-year period will see the annual distributions from this ETF increase substantially as well, leaving our investor with even more passive income.

That's enough to make a meaningful difference to a retirement.

The post How I'd build passive income with just $20 a week appeared first on The Motley Fool Australia.

There are a number of ETFs out there that have been designed to give investors access to a group of dividend shares through a single investment.

Two that could be worth considering for a retirement portfolio are listed below. Here's what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The BetaShares S&P 500 Yield Maximiser could be a top option for a retirement portfolio. This ETF has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns at the same time.

The ETF aims to achieve this through the implementation of an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index. These are 500 of the largest companies listed on Wall Street. This includes dividend-payers such as Apple, Exxon Mobil, and Walmart.

The BetaShares S&P 500 Yield Maximiser's units currently provide investors with an 8.8% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is another top ETF for income investors to consider for a retirement portfolio.

The ETF provides investors with low-cost exposure to companies listed on the Australian stock exchange that have higher forecast dividends relative to other ASX-listed companies.

But don't worry, you won't end up with a portfolio filled with coal and iron ore miners! That's because the ETF restricts the proportion invested in any one industry to 40% and 10% for any one company. In addition, Australian Real Estate Investment Trusts (A-REITS) are excluded from the index.

Vanguard notes that this ensures that income investors are holding a diverse collection of dividend shares. Among the 70 shares included in the portfolio you'll find the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

The Vanguard Australian Shares High Yield ETF is currently trading with an estimated forward dividend yield of 5.9%.

The post Buy these ETFs for an income in retirement appeared first on The Motley Fool Australia.

Here's what you need to know about these ASX dividends shares:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first option for income investors to consider is actually an ETF.

The Vanguard Australian Shares High Yield ETF provides investors with exposure to ASX-listed shares that have higher than average forecast dividends.

But it does this with diversification in mind. 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.

Among the ASX dividend shares that you'll be owning a slice of with this ETF are mining behemoth BHP Group Ltd (ASX: BHP), Australia's largest bank Commonwealth Bank of Australia (ASX: CBA), and telco giant Telstra Corporation Ltd (ASX: TLS).

At present, the Vanguard Australian Shares High Yield ETF trades with an estimated forward dividend yield of 6.3%.

Westpac Banking Corp (ASX: WBC)

A second option for income investors to consider is banking giant Westpac.

Goldman Sachs is very positive on Westpac due to its "strong leverage to rising rates" and "cost management initiatives."

In fact, Westpac is the broker's number one pick in the sector and has its coveted conviction buy rating on its shares with a $27.07 price target. This implies potential upside of 13% for investors.

The broker is also expecting some big dividends in the coming years, sweetening the deal further. Goldman has pencilled in fully franked dividends of 123 cents per share in FY 2022 and 139 cents per share in FY 2023. Based on the current Westpac share price of $23.99, this will mean yields of 5.1% and 5.8%, respectively.

The post These ASX dividend shares have big yields appeared first on The Motley Fool Australia.

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:

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%.

The post Dividends, dividends, dividends! 2 ASX ETFs to buy now appeared first on The Motley Fool Australia.

There are a number of ETFs that have been set up to give investors exposure to a collection of dividend shares. All through a single investment.

Two that could be worth considering are listed below:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for income investors to consider is the BetaShares S&P 500 Yield Maximiser.

This ETF has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns. To achieve this, BetaShares has implemented an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index.

This index is of course home to 500 of the largest companies listed on Wall Street. Among the companies you'll be investing in include Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and United Health.

At the last count, its units were providing investors with a 6.4% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ETF that could be a good option for income investors is the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with exposure to companies that have higher than average forecast dividends. Importantly, this is done with diversification in mind. Vanguard restricts the proportion invested in any one industry to 40% of the total ETF and 10% for any one company. This ensures that you're holding a diverse collection of dividend shares.

Among the companies included in the fund are Commonwealth Bank of Australia (ASX: CBA) and the big four banks, as well as mining giants such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.8%.

The post 2 ETFs for ASX income investors to buy for dividends appeared first on The Motley Fool Australia.