3 ASX ETFs you might not know pay dividends

These ETFs have surprisingly large dividend yields…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It only takes a little bit of investing knowledge and common sense to know if some ASX exchange-traded funds (ETFs) pay out dividend distribution.

For example, it would be a pretty safe bet that the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) are dividend payers by virtue of their names alone.

And most investors know that many, if not most, ASX shares are dividend payers, so it would also be a relatively safe assumption that an ASX-based index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) would also dole out periodic income to its investors.

But let's talk about some ASX ETFs that might not be such prominent dividend payers but still give their investors plenty of income.

Three people raise their arms to catch banknotes swirling through the air.

Image source: Getty Images

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This ETF from BetaShares is an index fund that tracks America's NASDAQ-100 Index (NASDAQ: NDX). This index comprises the 100 largest companies that list on the NASDAQ exchange, excluding financial shares. The NASDAQ is known for housing most of the US tech shares. So you'll find the likes of Apple, Alphabet, Tesla and Amazon dominating this ETF.

Many US tech shares, including Apple and Microsoft, pay dividends. As such, so too does this ETF. Over the past 12 months, this ETF has given its unit holders a total of $2.04 per unit of dividend distribution income. That gives this ETF an impressive trailing yield of 7.7%.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF from provider BetaShares, this one covers a specific sector in cybersecurity. Its portfolio is dominated by US shares. But there are companies from Israel, India, France and Japan in there too. Some of the fund's top holdings include Okta, Broadcom, Fortinet and Cisco Systems.

Just like with our last ETF, this fund also houses dividend payers, which include Cisco and Broadcom. Its last dividend distribution came to 68 cents per unit, which gives this fund a trailing yield of 8.74% on current prices.

Global X FANG+ ETF (ASX: FANG)

Last but not least, we have another tech-focused ETF from provider Global X. This ETF is a relatively concentrated one, holding just 10 shares in its portfolio. These include the FANG stocks that give the fund its name: Meta Platforms (formerly Facebook), Apple, Amazon, Netflix and Alphabet (owner of Google).

But you'll also get Snowflake, Microsoft, Tesla, NVIDIA and AMD (the '+'). This ETF's last distribution was the 68.64 cents per share payment from July last year. That gives the Global X FANG+ ETF a trailing yield of 5.58% on current pricing.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Tesla and Vanguard Australian Shares Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon.com, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Nvidia, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

ETF spelt out with a piggybank.
ETFs

ASX ETFs that target undervalued sectors

These funds could be trading at a discount right now.

Read more »

Target circle going down on a rollercoaster, symbolising volatility.
ETFs

Looking to defend your portfolio from volatility? – 3 great ASX ETFs to consider

These funds aim to help reduce volatility.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
ETFs

3 ASX ETFs that could be strong picks for investors in their 30s

Looking for investments in your 30s? Here are three funds to consider.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
ETFs

Should I invest $2,000 in the VAS ETF?

This popular ETF tracks the S&P/ASX 300 and offers broad market diversification.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

2 ASX ETFs I'd buy for returns and to sleep well at night

These funds have strong growth potential.

Read more »

ASX oil share price buy represented by cash notes spilling out of oil pipe Suez ASX energy shares
ETFs

Oil climbs toward US$100 as the Middle East war disrupts global supply

Global commodity markets rise as oil climbs toward US$100 per barrel.

Read more »

Woman in celebratory fist move looking at phone.
ETFs

The ASX ETFs to buy for growth, income, and diversification

Exchange-traded funds can help investors target a variety of investment goals.

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

3 ASX ETFs for new investors to consider in 2026

Here's an instantly diversified portfolio with just three ETFs.

Read more »