Buy these ASX ETFs for big dividend income

These ETFs can be used by investors boost their dividend income materially.

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As well as giving investors opportunities to invest in indices and sectors from across the globe, some exchange traded funds (ETFs) have been set up to allow you to focus on a particular investment objective.

One of those objectives is dividend income.

With that in mind, let's get better acquainted with two ASX ETFs that provide investors with a nice income stream.

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 ASX ETF to buy if you're searching for income.

This ETF is somewhat unconventional. That's because it uses a clever equity income investment strategy over a portfolio of shares comprising the famous S&P 500 Index on Wall Street.

By doing so, the fund manager is able to deliver a greater dividend yield than you would expect to receive from buying the 500 stocks. Betashares notes that the additional income generated by UMAX's strategy may partly offset potential losses in falling markets.

For example, at present, the BetaShares S&P 500 Yield Maximiser's units are offering investors an impressive 6.9% distribution yield.

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

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is a more traditional ASX ETF.

It uses broker research to build a diverse portfolio of ASX shares that have higher forecast dividend yields relative to the rest of the market.

Vanguard highlights that the ETF could be suitable for buy and hold investors that are seeking long-term capital growth, some tax effective income, and with a higher tolerance for the risks associated with share market volatility.

At present there are 72 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), Wesfarmers Ltd (ASX: WES), and Woodside Energy Group Ltd (ASX: WDS).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forecast dividend yield of 5.3%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&p 500 Yield Maximiser Fund, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended 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.

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