3 ASX ETFs to buy for income in August

Income investors might want to check out these top ETFs.

| More on:
Smiling woman with her head and arm on a desk holding $100 notes out, symbolising 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

If you are an income investor but not a fan of stock picking, then exchange-traded funds (ETFs) could be for you.

That's because they provide investors with access to large numbers of ASX shares through a single click of the button. This allows you to diversify a portfolio with relative ease.

And the good news for income investors is that there are plenty of options out there for them.

For example, three ASX ETFs that provide investors with a source of income are listed below. Here's what you need to know about them:

Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

The Betashares Australian Top 20 Equity Yield Maximiser Fund could be a great option for income investors.

It aims to generate attractive quarterly income and reduce the volatility of portfolio returns. This is achieved by implementing a clever covered call strategy over a portfolio of the 20 largest blue-chip shares listed on the Australian share market.

Betashares recently recommended the ETF as a top option to counter falling dividend yields. Commenting on the covered call strategy, the fund manager noted that "performs well in a neutral or gradually rising market, allowing call options to generate income without stocks being called away too often, as has been seen in recent months."

At present, it trades with a trailing 12-month dividend yield of 7.8%.

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

If you like the sound of this covered call strategy, then the BetaShares S&P 500 Yield Maximiser could also be worth a closer look.

As with YMAX, this ETF has been designed to squeeze out as much income as possible from the top 500 companies listed on Wall Street using the same covered call strategy. Among its holdings are giants such as AppleJohnson & JohnsonMicrosoft, and Walmart.

At present, this ASX ETF's units are trading with a 12-month trailing 4.5% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A third ASX ETF for income investors to look at is the Vanguard Australian Shares High Yield ETF.

This ETF doesn't use any clever strategies. Instead, it leverages broker research to find around 70 ASX shares that are forecast to have bigger dividend yields compared to the market average.

But rather than just loading up purely on banks and mining giants, the fund has diversity in mind and its holdings come from all corners of the market.

For example, at present its holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Dicker Data Ltd (ASX: DDR), and Lottery Corporation Ltd (ASX: TLC).

The Vanguard Australian Shares High Yield ETF currently trades with a dividend yield of 5%.

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 no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Lottery, Microsoft, and Walmart. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Dicker Data. The Motley Fool Australia has recommended Apple, Microsoft, 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 »