With global valuations stretched here are 3 great income ASX ETFs

Global equities are showing signs of being stretched across many sectors. 

Despite a dip last week, both the S&P/ASX 200 Index (ASX: XJO) and S&P 500 Index (SP: .INX) are not far off all-time highs. 

When this happens, it can be prudent for investors to shift the focus away from growth/value investing strategies to income. 

One way to do this is through ASX ETFs that target market-beating income returns. 

Income-focused ASX ETFs can be attractive because they offer diversification and access to dividends that may help cushion volatility.

Here are three ASX ETFs investors may wish to consider for an income boost. 

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This high yield ASX ETF consistently performs as one of the top passive income options for investors. 

The fund employs an investment strategy that tracks the FTSE Australia High Dividend Yield Index. 

This index provides exposure to ASX shares with higher forecast dividends than the broader market.

It currently offers a trailing yield of around 4.25%. 

Last year, I covered that the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) was 3.5%.

This fund clearly outperforms this average, which is good news for long-term investors seeking market beating income. 

Its top weighted holdings are: 

• BHP Group Ltd (ASX: BHP): 10.62%
• Commonwealth Bank of Australia (ASX: CBA): 9.91%
• Westpac Banking Corp (ASX: WBC): 7.31%. 

It comes with a management fee of 0.25% p.a, which is relatively low.

Betashares Australian Dividend Harvester Fund (ASX: HVST)

This ASX ETF uses a slightly different strategy to generate income. 

It aims to provide franked income that exceeds the net income yield of the broad Australian sharemarket on an annual basis, along with exposure to a diversified portfolio of Australian shares.

According to Betashares, it follows a rules-based 'dividend harvest' strategy, which seeks to maximise HVST's exposure to dividend-paying Australian shares.

The fund's share portfolio is generally selected from the largest 100 Australian shares on the ASX, screened for high dividend and franking outcomes based upon expected future gross dividend payments.

The share portfolio is rebalanced approximately every three months, with the aim of including the shares that are expected, within the next rebalance period, to provide the highest gross yield outcomes.

As of 2 February 2026, its 12-month yield was 5.8%.

It comes with a management fee p.a. of 0.72%. 

Global X S&P/ASX 300 High Yield Plus ETF (ASX: ZYAU)

This ASX ETF invests in 50 high-dividend stocks from the S&P/ASX 200 Index.

It has the lowest management cost of the three listed funds, charging 0.24% p.a.

As at 30 January 30, it had a 12-Month yield of 4.12%. 

It is worth noting the fund is a purely income-focused strategy with limited capital growth.

However this could make it ideal for investors anticipating limited capital gains from the ASX in 2026. 

The post With global valuations stretched here are 3 great income ASX ETFs appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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