Today, lets explore Australia’s 6 Best Performing Dividend ETFs. Then, I am going to cover a popular strategy on what it takes to make that elusive $1,000 per month in dividend income.
6 Top Dividend ETFs In Australia (Make $1,000 Per Month of Passive Income)
A Dividend ETF is exactly like a normal ETF, it tracks a broad market index, the only difference is the main objective of this ETF is to own stocks in companies that pay high dividends, also known as dividend yields, which this ETF can then pass on to the funds investors.
1. ETF Securities S&P/ASX 300 High Yield Plus ETF (ASX:ZYAU)
The first ETF on my list is from ETF Securities called the S&P/ASX 300 High Yield Plus. This ETF only buys shares in companies that are listed on the ASX 300 Index, with the highest dividend payouts. The dividend yield over the past 12 months was 3.88%.
2. BlackRock iShares S&P/ASX Dividend Opportunities ETF (ASX:IHD)
This ETF only buys stocks in the top 50 ASX listed companies that offer high dividend yield. The dividend yield over the past 12 months was 4.33%. It also has a reasonable management fee of 0.30%.
3. Betashares Global Income Leaders ETF (ASX:INCM)
This ETF tracks the performance of 100 high-yielding global companies, excluding the Australian market, that are selected to generate attractive and stable income. The dividend yield over the past 12 months was 3.20%. Because it invests in companies overseas it does have a higher management fee of 0.45%.
4. SPDR S&P Global Dividend Fund (ASX:WDIV)
This ETF closely tracks the returns of the S&P Global Dividend Aristocrats, which basically means companies that have been paying dividends for many years. So, another global ETF, but this one does not exclude Australian companies. The dividend yield over the past 12 months is the highest at 5.05%. This ETF does have the highest management fee on my list today of 0.50%.
5. Russell Investments High Dividend Australian Shares ETF (RDV)
This dividend tracks the Russell Australia High Dividend Index which is made up of a group of Australian blue-chip companies that have a high expected dividend yield and have been paying dividends for many years. The dividend yield over the past 12 months is 4.23%, and the management fee is modest at 0.34%.
6. Vanguard Australian Shares High Yield ETF (VHY)
This Dividend tracks the return of the FTSE Australia High Dividend Yield Index. The dividend yield over the past 12 months, is one of the highest at 4.77% and it has the lowest management fee at 0.25%.
Here’s the thing, brass tax, you are going to need a fair bit of money to invest into one of the funds to get a $1,000 per month return.
How much, well the average yield is 4.50% (which means for $1,000 invested you would make $45.00 in income. To make $1,000 per month you are going to need north of $250,000.
Make a copy to your Google Doc. Thanks for watching till the end 🙂
This video is not intended as financial or investment advice and should not be construed or relied on as such. Jake Tony’s videos are for entertainment purposes only. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.