The best 5 ASX ETFs to buy for passive income

For investors who want consistent and diversified passive income, the following 5 ASX ETFs offer attractive yields at a relatively low cost.

Vanguard Australian Shares High Yield ETF (ASX: VHY) 

is a popular passive income option for investors who want broad exposure to higher-yielding Australian companies with a low management fee of 0.25% per annum and quarterly distributions.
The ETF is focused on ASX-listed companies with stronger forecast dividends while industry exposure is capped at 40% and any single company at 10% which will help reduce concentration risk.

VHY as of 31 March 2026 holds 79 companies and its largest positions include BHP, Commonwealth Bank, Westpac, NAB, and Woodside which gives investors access to many of Australia’s biggest dividend payers.
The current annual yield is 5.51% and VHY is a very good passive income ETF choice for long-term portfolios.

Betashares Global Royalties ETF (ASX: ROYL) 

will give investors a distinct way to access global royalty businesses while charging a management fee of 0.69% per annum and providing exposure to companies that earn recurring royalty or intellectual property income.

The fund invests across mining, energy, music, biotech, and technology which allows investors to benefit from asset-light businesses that often have high returns on capital.

ROYL currently holds 40 companies and its largest positions include Texas Pacific Land, Wheaton Precious Metals, Franco-Nevada and ARM Holdings which will give broad global diversification.

Almost half of the portfolio is made up of US companies and the current annual yield is 5.43% which makes it an attractive option for investors who seek both growth and passive income.

Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM)

will give investors diversified international passive income exposure with a competitive management fee of 0.39% per annum and quarterly distributions.

Its strategy follows an index of companies in developed markets outside Australia that have increased or maintained dividends for at least 10 consecutive years which helps target quality businesses with reliable payout records while filtering out potential dividend traps.

INCM currently holds 178 companies and key holdings include Apple, Verizon, Microsoft and JPMorgan which provides broad sector and geographic diversification led by the United States.
The current annual yield is 6.39% and INCM stands out as a solid option for investors seeking global dividends plus long-term stability.

Betashares Australian Dividend Harvester Active ETF (ASX: HVST) 

is built for passive income-focused investors and offers monthly distributions with a management fee of 0.65% per annum plus estimated expenses of 0.07% per annum.
It uses an active rules-based dividend harvest strategy that selects 40 to 60 Australian shares mainly from the ASX 100.

The current annual yield is 5.8% and the trailing franking level is 63.9% which makes the ETF attractive for investors who want tax-effective income.

Top holdings include BHP Group, National Australia Bank, Westpac Commonwealth Bank and ANZ as HVST gives access to many of Australia’s leading dividend payers through one diversified ETF.

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

is a low-cost income focused ETF with management fees of just 0.24% per annum which has an aim to give investors an above market dividend yield from Australian shares.

Its strategy follows the S&P/ASX 200 High Dividend Index and selects 50 high-yield companies from the ASX 200 while excluding REITs, screening out weaker momentum stocks and limiting sector exposure for diversification.

The current annual yield is 3.84% with quarterly distributions while top holdings include BHP, Westpac, NAB, ANZ, Woodside, Telstra and Rio Tinto.

With broad exposure to financials, materials and energy, ZYAU stands out as a solid option for investors who want reliable passive income.

(Source: Company Reports)