Buy these ASX ETFs in July for passive income

These funds can be used to generate income from the market.

| More on:
Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.

Image source: Getty Images

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

There are a growing number of exchange-traded funds (ETFs) to choose from on the Australian share market.

This means that whether you are a growth investor or an income-focused investor, there is likely to be an ETF out there for you.

With that in mind, let's now take a look at three ASX ETFs that could be top options for income investors in July. They are as follows:

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

The BetaShares S&P 500 Yield Maximiser could be an ASX ETF to buy for passive income.

This fund has been created to give investors access to the top 500 companies listed on Wall Street. This includes many of the largest companies in the world such as AppleExxon MobilJohnson & Johnson, and Walmart.

And while the S&P 500 index itself only has a very modest average dividend yield, this ETF's actively managed covered call strategy means it has been able to pay out significantly more.

For example, its units currently trade with a trailing 4.7% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A more traditional option for income investors to look at is the Vanguard Australian Shares High Yield ETF.

This popular ETF gathers together a group of ASX dividend shares that brokers are forecasting to provide big dividend yields. Importantly, it does this with diversity in mind and doesn't just load up on banks and miners. Vanguard limits how much it invests in any particular industry or company.

Among its ~70 holdings are dividend payers such as BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), Commonwealth Bank of Australia (ASX: CBA), Transurban Group (ASX: TCL), and Wesfarmers Ltd (ASX: WES).

The Vanguard Australian Shares High Yield ETF currently trades with a dividend yield of 4.9%.

Vanguard Australian Shares Index ETF (ASX: VAS)

A third ASX ETF that could be a good source of passive income is the Vanguard Australian Shares Index ETF.

This ETF has been designed to track the local ASX 300 index. This means that you will be owning a slice of Australia's leading 300 listed companies.

And while not all these companies are dividend payers, there are plenty in the fund that are. Among this diverse group of shares are companies such as Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).

At present, this ETF trades with an attractive dividend yield of 3.7%.

Should you invest $1,000 in Betashares Capital S&p 500 Yield Maximizer Fund right now?

Before you buy Betashares Capital S&p 500 Yield Maximizer Fund shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Betashares Capital S&p 500 Yield Maximizer Fund wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor James Mickleboro has positions in Lovisa and Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Lovisa, Macquarie Group, Transurban Group, Walmart, and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund, Coles Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has recommended Apple, Lovisa, 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

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline
52-Week Highs

12 ASX ETFs at new 52-week highs this Thursday

Do you own any of these lucky ETFs?

Read more »

Global technology shares
ETFs

Here's how much $5,000 invested in these global ASX ETFs 5 years ago would be worth today

ETFs are a great example of a simple 'set and forget' investment for your portfolio.

Read more »

Woman calculating dividends on calculator and working on a laptop.
ETFs

Here's how much the Vanguard MSCI Index International Shares ETF (VGS) currently pays in dividends

The yield on this ETF might surprise you.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
ETFs

Is the iShares S&P 500 ETF (IVV) still a brilliant buy after storming higher?

Should investors still buy this fund or is it too expensive?

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
ETFs

Here are my 2 favourite ASX ETFs to buy for high-yield passive income in 2025

I think both of these funds are compelling options for dividends.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
ETFs

5 ASX ETFs to buy with $5,000 today

Here are five excellent options for Aussie investors to consider this week.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
ETFs

Why today is a monumental day for ASX ETFs

This Wednesday is one for the ETF record books.

Read more »

ETF written on cubes sitting on piles of coins.
ETFs

Hoping for market-beating returns? I'd buy these 2 top ASX ETFs

I’m backing both of these funds to deliver good returns over the long term.

Read more »