How to generate passive income with ETFs

LiveWire2023-10-17

When people think of ETFs, broad-based equities are often what comes to mind first. But for income seeking investors, ETFs offer a wide range of options. Many of these now offer significantly higher ...

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Many of these now offer significantly higher ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/how-to-generate-passive-income-with-etfs\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How to generate passive income with ETFs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow to generate passive income with ETFs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-17 09:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/how-to-generate-passive-income-with-etfs><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When people think of ETFs, broad-based equities are often what comes to mind first. But for income seeking investors, ETFs offer a wide range of options. Many of these now offer significantly higher ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/how-to-generate-passive-income-with-etfs\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"UTIP.AU","symbol_name":"BS INFLA P US TB CCY HGD ETF","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/how-to-generate-passive-income-with-etfs","article_id":"2376158124","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/how-to-generate-passive-income-with-etfs","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2376158124","pubTimestamp":1697507850,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"When people think of ETFs, broad-based equities are often what comes to mind first. But for income seeking investors, ETFs offer a wide range of options. Many of these now offer significantly higher yields than a just a couple of years ago, while others may offer franking credits to boost after-tax income.Read to the end to learn about a popular way to build a portfolio for income. But first, here are four types of assets investors can use to generate income from ETFs.Australians have long been attracted to equities for their dividend yields and franking credits, but there’s more to equity income than just buying blue chip stocks for their dividends.Some strategies involve selling options to boost income and potentially lower volatility. Others aim to ‘harvest’ dividends and franking credits by regularly rebalancing into companies that are expected to pay a dividend in the months ahead.Some strategies may offer tax advantages, such as franking credits, helping investors maximise their ","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"UTIP.AU":"BS INFLA P US TB CCY HGD ETF","INCM.AU":"BETASHARES GB INCOME LEADERS","QPON.AU":"BETASHARES AUS BANK SENIOR F","BK4550":"红杉资本持仓","AAA.AU":"BetaShares Aus High Interest Cash ETF","HBRD.AU":"BETASHARES ACTIVE AUS HYB FD","HVST.AU":"BETASHARES AU DVD HARVESTER","YMAX.AU":"BETASHARES AUS TOP 20 EQ YLD","INCM":"Franklin Income Focus ETF","AAA":"Alternative Access First Priority CLO Bond ETF","FDN":"First Trust Dow Jones Internet I","BK4092":"石油与天然气钻井","AGVT.AU":"BETASHARES AUS GOV BOND ETF","UMAX.AU":"BETASHARES S&P 500 YIELD MAX","BK4190":"消闲用品","OZBD.AU":"BetaShares Australian Composite Bond ETF","XAO.AU":"标普/澳交所 普通股指数","XJO.AU":"标普/澳交所 200指数","UMAX":"Umax Group Corp","QMAX.AU":"BETA NDQ 100 YLD MAX FUND","PDS":"Precision Drilling Corp","XKO.AU":"标普/澳交所 300指数","BHYB.AU":"Betashares Aust Mjr Bnk Hyb Idx ETF"},"translate_title":"如何利用ETF创造被动收入","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"INCM.AU":1,"YMAX.AU":1,"UTIP.AU":1,"UMAX.AU":1,"UMAX":1,"QPON.AU":1,"QMAX.AU":1,"PDS":1,"OZBD.AU":1,"AAA":1,"INCM":1,"HVST.AU":1,"HBRD.AU":1,"BHYB.AU":1,"AGVT.AU":1,"AAA.AU":1,"FDN":0.9,"XAO.AU":0.9,"XJO.AU":0.9,"XKO.AU":0.9},"content_text":"When people think of ETFs, broad-based equities are often what comes to mind first. But for income seeking investors, ETFs offer a wide range of options. Many of these now offer significantly higher yields than a just a couple of years ago, while others may offer franking credits to boost after-tax income.\nRead to the end to learn about a popular way to build a portfolio for income. But first, here are four types of assets investors can use to generate income from ETFs.\nEquity income\nAustralians have long been attracted to equities for their dividend yields and franking credits, but there’s more to equity income than just buying blue chip stocks for their dividends.\nSome strategies involve selling options to boost income and potentially lower volatility. Others aim to ‘harvest’ dividends and franking credits by regularly rebalancing into companies that are expected to pay a dividend in the months ahead.\nWhy equity income?\n\nEquity income can provide an attractive income stream from a portfolio of equities, often with distributions paid monthly or quarterly.\nSome strategies may offer tax advantages, such as franking credits, helping investors maximise their after-tax returns.\nInvestors may benefit from potential appreciation in the value of the underlying stocks.\n\nHybrids\nHybrids have elements of both bonds and shares, and sit somewhere in between the two for levels of risk and return. They’re typically issued by corporations, and in Australia, banks are by far the most common issuer.\nIndividual hybrids can be complex. For this reason, a professional investment manager can be helpful in navigating this asset class.\nWhy hybrids?\n\nHybrids generally offer a higher level of income than shares or fixed income, with a greater level of capital stability than shares.\nThey can offer franking credits, improving after-tax returns.\nBetashares’ hybrid funds pay distributions monthly.\n\nFixed income\nFixed income plays a key role in investors’ portfolios, providing income and defensive attributes. It also offers diversification benefits for investors with equities in their portfolio.\nInvesting in fixed income is essentially buying debt, which the borrower needs to pay back, with interest. Depending on the credit worthiness of the borrower, and the length of time until the money is paid back, the yield may be higher or lower.\nWhy fixed income?\n\nFixed income typically offers a higher level of capital stability than equities.\nSome types of fixed income, particularly long-term government bonds, may offer a negative correlation to equities. This means that the value of the bonds increases as share prices fall, helping to smooth out volatility.\nIt offers a consistent, and more predictable income compared to share dividends, with distributions paid monthly or quarterly.\n\nCash\nFor investors relying on their investment portfolio for income, cash is king. It offers flexibility, liquidity, and certainty.\n“If cash is so great, why don’t I just put everything in cash?”, I hear you ask. Well, cash has historically produced lower returns than other asset classes over the long term. But cash is still a reliable option for managing short-term needs.\nThe good news for investors is that cash is currently offering the best rates in more than a decade.\nWhy cash?\n\nRegular income with high levels of capital stability\nLow risk\n\nInvesting with buckets\nInvesting for income requires a different mindset an approach to accumulating your nest egg.\nFor example, during the accumulation phase, volatility can be beneficial for long-term returns, allowing investors to purchase assets at a lower price. But once you’re drawing down on investments, volatility – particularly during the early phases – can have a serious impact on how long your money lasts. This is known as ‘sequencing risk’.\nOne popular strategy that aims to manage the risks investors face during drawdown is called a ‘bucket strategy’. This strategy involves splitting your funds into three ‘buckets’:\n\n\nCash. This typically contains a year or more living expenses, and possibly an ‘emergency fund’ for unexpected expenses.\n\nFixed income. As the cash bucket depletes, attention shifts to fixed income, this bucket aims for stability, but is less conservative than the cash bucket. It’s generally anchored with high quality government and corporate bonds, but may include a modest allocation to hybrids or lower grade bonds.\n\nGrowth. Investment doesn’t end at retirement. For people aged 60 today, life expectancy is 24 years for males and 27 years for females1, allowing more than two decades for investment. As such, growth investments may still form an important part of a retirement investment strategy. Growth investments typically include shares, and may include property or other growth assets.\n\nThe goal is to fund living expenses from the cash bucket, along with any distributions or dividends from the other buckets.\nIf the cash bucket gets low, it can be topped up by selling down assets in either the second or third bucket, depending which has performed best recently. This acts as a form of rebalancing, allowing investors to get back to their target allocations.\nKeep it simple\nRetirement is a time of great change, but it doesn’t need to be overly complex. Four types of ETFs and three buckets are a good starting point. Though a qualified financial adviser can be an invaluable resource, helping to guide your way.\nExamples of Betashares equity income funds:\n\n\n\nETF\nBetaShares Australian Top 20 Equity Yield Maximiser (managed fund) (YMAX)\nAustralian Shares\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares S&P 500 Yield Maximiser Fund (managed fund) (UMAX)\nGlobal Shares\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares NASDAQ 100 Yield MaximiserETF (QMAX)\nGlobal Shares\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares Global Income Leaders ETF (INCM)\nGlobal Shares\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares Australian Dividend Harvester Fund (Managed Fund) (HVST)\nAustralian Shares\n\n\nView\n\n\n\nBetashares hybrid funds:\n\n\n\nETF\nBetaShares Active Australian Hybrids Fund (managed fund) (HBRD)\nAlternative Assets\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares Australian Major Banks Hybrids Index ETF (BHYB)\nAlternative Assets\n\n\nView\n\n\n\nExamples of Betashares fixed income funds:\n\n\n\nETF\nBetaShares Australian Composite Bond ETF (OZBD)\nAustralian Fixed Income\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares Australian Bank Senior Floating Rate Bond ETF (QPON)\nAustralian Fixed Income\n\n\nView\n\n\n\n\n\n\nETF\nBetaShares Australian Government Bond ETF (AGVT)\nAustralian Fixed Income\n\n\nView\n\n\n\n\n\n\nETF\nBetashares Infl-Protd US Trs Bd CcyH ETF (UTIP)\n\n\n\nView\n\n\n\nCash funds:\n\n\n\nETF\nBetaShares Australian High Interest Cash ETF (AAA)\nCash\n\n\nView\n\n\n\nAn investment in the above funds involves risk, which may include (fund specific) market risk, interest rate risk, international investment risk and index tracking risk. For more information on risks and other features of the funds, please see the respective Product Disclosure Statement (PDS) and Target Market Determination, both available on (VIEW LINK).\nReferences:\nSource: ABS Life tables, 2019-2021.\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2376158124"}