Buy these ASX ETFs for an income boost

If you’re looking to construct an income portfolio but aren’t sure which ASX shares to buy, you could look at the exchange traded funds (ETFs) listed below instead.

That’s because these ETFs provide investors with access to a diverse collection of dividend-paying shares. Here’s what income investors need to know about them:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF could be a great option for income investors.

This ASX ETF provides investors with easy access to a diverse group of shares that brokers are expecting to provide larger than average dividend yields.

Another positive is the diversity it brings to a portfolio. Vanguard highlights that this means it is less exposed to the performance fluctuations of individual shares.

It achieves this by limiting how much it invests in any particular industry or company. At present, there are a total of 72 ASX dividend shares in the portfolio. This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Transurban Group (ASX: TCL), and Woodside Energy Group Ltd (ASX: WDS).

Vanguard estimates that its holdings will collectively underpin a dividend yield of 5.5% for investors over the next 12 months.

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

Another ASX ETF for income investors to consider buying is the Vanguard MSCI Australian Small Companies Index ETF.

As you might have guessed from its name, this ETF gives investors access to small cap Australian shares. While this makes it a higher risk option, it makes up for this with potentially greater returns. Vanguard explains:

VSO can help reduce portfolio concentration by ensuring your clients are exposed to the important growth potential of small to mid-capitalisation stocks. Unlike many other small cap funds VSO is intelligently designed to include a range of mid and small cap companies, not just the tail end of the stock market.

Among its holdings are Carsales.Com Ltd (ASX: CAR), Charter Hall Group (ASX: CHC), and Dicker Data Ltd (ASX: DDR). Vanguard estimates that these and its other 194 holdings will collectively provide investors with a 3.5% dividend yield.