Exchange-traded funds (ETFs) aren't just about giving investors exposure to global markets.
They can also be used by investors looking for income. That's because some ETFs have been designed to give investors access to large groups of dividend shares through a single investment.
Two such ASX ETFs are listed below. Here's why they could be top options for income investors this month:
Image source: Getty Images
BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The first ASX ETF that could be a good option for income investors right now is the BetaShares S&P 500 Yield Maximiser.
This clever ETF has been designed to give investors access to the top 500 companies listed on Wall Street with a 'covered call' strategy. This strategy allows the actively managed fund to potentially earn quarterly income that is significantly greater than the dividend yield of the underlying share portfolio.
For example, at the last count, its units were providing investors with a trailing 6.7% distribution yield.
Among the companies included in the fund are Wall Street giants such as Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and Walmart.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Another ASX ETF to consider buying is the Vanguard Australian Shares High Yield ETF.
This popular ETF provides investors with access to a group of ASX-listed shares that have higher-than-average forecast dividends.
Vanguard limits the proportion invested in any one industry to 40% and 10% for any one company. This ensures that investors are holding a diverse collection of dividend shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).
At present, the Vanguard Australian Shares High Yield ETF trades with a dividend yield of 5.8%.
