4 ASX ETFs for passive income in 2026

Passive income generation need not be complex and these four low-cost ASX ETFs provide a simple way to generate attractive yields in 2026.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Vanguard Australian is designed with a clear income focused objective and aims to provide exposure to Australian companies that offer higher than average dividend yields.
The fund has a strong income profile which is supported by companies with consistent dividend histories and high levels of franking credits.

The ETF offers a current annual yield of 7.70% with distributions paid on a quarterly basis.
Diversification is managed by limiting exposure to 40% in any one industry and 10% in any single company while Australian Real Estate Investment Trusts are excluded from the index.

VHY has a rules-based approach as it tracks the FTSE Australia High Dividend Yield Index which ensures transparency and consistency in portfolio construction.
The expense ratio is 0.25% per annum and the portfolio consisted of 75 holdings as of 31 December 2025.

Betashares Australian Dividend Harvester Active ETF (ASX: HVST)

Betashares Australian Dividend Harvester Active ETF  is designed with a clear income-first objective and aims to deliver franked income that exceeds the net income yield of the broader Australian share market over time and does not track any index.
A key feature of the fund is that distributions are paid on a monthly basis which makes it attractive for investors who prefer regular cash flow.

The ETF has a current annual yield of 5.65% and the securities portfolio is selected from the largest 100 Australian shares by market capitalisation on the ASX.

The securities portfolio provides exposure to around 40 to 60 shares which are rebalanced every three months to maintain the strategy objectives.
Total costs are reasonable for an active strategy with an expense ratio of up to 0.72% per annum which covers both management and operating expenses.

VanEck Emerging Income Opportunities Active ETF (ASX: EBND)

gives investors the access to high yield emerging market bonds which offer better income than developed market bonds but come with higher risk.

The fund invests across government, semi government and corporate bonds in emerging markets and distributes income on a monthly basis which makes it suitable for income focused investors.
The ETF has a current annual yield of 6.04% supported by diversified exposure to more than 100 bond holdings while the expense ratio is 0.95% per annum and is managed with a high conviction approach to enhance long-term income outcomes.

Geographic exposure is spread across markets such as Mexico, Brazil, Malaysia and Poland with the portfolio heavily weighted towards government bonds where government related exposure accounts for about 85% of the portfolio.

Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

tracks the S&P/ASX 200 High Dividend Index and provides exposure to Australian companies with high forecast dividend yields and does not include REITs.

The portfolio is dominated by large caps with around 81% allocated to large cap stocks which provides income stability from established Australian companies and the ETF is designed for income focused investors by selecting 50 high dividend paying companies from the ASX 200.
ZYAU has a current annual yield of 4.07% and the expense ratio stands at 0.24% per annum.
The fund also provides diversification across major sectors such as materials, energy, industrials and financials which helps to avoid excessive concentration in any single sector.

(Source: Company Reports)