Why you could buy these ASX ETFs for retirement income

If you’re not a fan of stock picking, then you shouldn’t let that stop you from investing. That’s because there are investment options out there designed to make your life easier.

These are exchange traded funds (ETFs), which allow you to invest in a group of shares through a single investment.

Another positive is that there are ETFs for almost every investment objective. If you want access to mining stocks, whole indices, or income, there’s likely to be something out there for you.

With that in mind, listed below are two that could be worth considering for a retirement portfolio. Here’s what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ASX ETF for retirees to consider for income is the BetaShares S&P 500 Yield Maximiser.

The BetaShares S&P 500 Yield Maximiser has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns at the same time.

BetaShares aims to do this through the implementation of an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index. These are 500 of the largest companies listed on Wall Street and includes giants such as Apple, Bank of America, Exxon Mobil, Starbucks, and Walmart.

The BetaShares S&P 500 Yield Maximiser’s units currently provide investors with a 6.7% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF that could be worth considering for a retirement portfolio is the Vanguard Australian Shares High Yield ETF.

The ETF gives investors access to companies listed on the Australian stock exchange that have higher forecast dividends relative to the rest of the market. Though, this excludes Australian Real Estate Investment Trusts (A-REITS).

Vanguard notes that its portfolio construction is done with diversification in mind. It restricts the proportion invested in any one industry to 40% and 10% for any one company.

Among the ASX shares included in the fund are income investor favourites such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.3%.