Three ASX ETFs to buy today for big dividend income

I think these three funds can give anyone a big boost in dividend income.

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ASX exchange-traded funds (ETFs) are not typically thought of as dividend investments. Investors flock to ETFs and index funds for their simplicity, hands-off nature, and steady returns, but often not solely for dividend income.

Yet many ETFs on the ASX offer huge dividend potential, which any income investor can use to bolster the franked dividends coming out of their ASX share portfolios.

Let's talk about three of them.

Three ASX ETFs to buy for big dividend income today

Vanguard Australian Shares High Yield ETF (ASX: VHY)

First up is the ASX's most popular dividend ETF. The Vanguard High Yield ETF holds a portfolio of around 70 of the ASX's best dividend payers. That includes both the ASX shares that sport the highest yields today, as well as the ASX shares identified as having the greatest future income potential.

This portfolio includes famous dividend payers like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS), as well as dividend growth beasts like Premier Investments Limited (ASX: PMV) and Dicker Data Ltd (ASX: DDR).

This VHY ETF pays out dividend distributions every quarter. At current pricing, the last four of these dividend distributions give the Vanguard High Yield ETF a trailing dividend yield of 5.84%.

VanEck Australia Banks ETF (ASX: MVB)

Turning to a different fund now, the VanEck Australian Banks ETF might be another ASX ETF to consider if you wish to maximise franked dividend income in your portfolio.

ASX banks are well-known income investments and are often the first choice of an income investor to build a portfolio. But sometimes, it can be difficult to choose between high-quality, lower-yield names like CBA and their smaller-scale but higher-yield rivals like Bank of Queensland Ltd (ASX: BOQ).

This ASX ETF from VanEck means you don't have to choose or, indeed, hold multiple bank shares within your portfolio. Instead, you get an average return and yield of the seven largest bank stocks on the market.

MVB also pays out quarterly dividends and currently offers a trailing yield of 5.23%.

SPDR S&P Global Dividend ETF (ASX: WDIV)

The ASX is one of the best stock markets in the world when it comes to dividend yields. However, I still think it's important to diversify your sources of income to include shares that aren't listed on the ASX.

You may not get much in the way of franking credits here, but balance is always a good thing when it comes to investing, in my view.

This ETF from SPDR is a great way to add some diversity to an ASX income portfolio. WDIV represents a portfolio of around 100 different dividend payers from all over the world. Some are from the United States and Canada, others from Japan, Hong Kong and Switzerland.

Unlike the above ASX ETFs, the S&P Global Dividend Fund pays out biannual dividends. It is currently trading on a trailing yield of 4.88%.

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. 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 Dicker Data and Telstra Group. The Motley Fool Australia has recommended Premier Investments 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.

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