Using ETFs for passive income (step by step, with ETF examples)

Owen Rask, Chief Investment Officer of Rask Invest, speaks with Betashares Senior Investment Strategist Cameron Gleeson about how to use ETFs for passive income in this Australian Finance Podcast.
Topics covered in this market update
1:30 - Cameron's first (and most recent) investment
5:00 - LICs versus ETFs
How ETFs actually produce income
Risk levels of ETFs
ETFs featured:
11:00 - AAA - cash ETF
13:10 - MMKT - cash plus ETF
16:39 - A200 - top 200 Aussie shares
20:00 - QOZ - top Aussie shares, fundamentally weighted
25:20 - YMAX - yield maximiser
26:20 - QPON - bond ETF
26:20 - HBRD - hybrid fund
26:20 - BSUB - bond ETF
Resources
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The Australian Finance Podcast is your crash course guide to sorting out your finances, one episode at a time. Owen & Kate bring you actionable information that you can put into practice today to smash those money goals and set yourself up for success.
DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.
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[@Zengarin]

Hi guys, One thing that I can't seem to get my head around is why go into a cash etf like AAA which gives around 4.5%pa when I can just put my money into a HISA and get a guaranteed 5%pa? I know ING has a higher bonus interest rate if you jump through hoops but I have money in the NAB rewards saver which gives 5%pa paid out every month as long as I put something in and nothing out that month which is simple enough. What is the advantage of a cash etf offering a lower interest rate over a HISA?

[@DarylClapton]

Great presentation. Great explanations around Core and Satellite investments. Active and non active investing. With regards to a Core portfolio of ETF’s we talk about holding ETF’s with exposure to each of the following asset groups
Global,
ASX
Cash
Bonds etc
to balance growth with dividend returns over the long term to ensure growth is keeping up with inflation and hopefully dividend returns will continue to grow in line.
What percentage of the overall core ETF investments would you try to keep in each of the asset groups.

[@RaskFinance]

Let us know if you have any questions or comments here. For example, how do you use ETFs for passive income?

[@lemons454]

Would you be able to do an episode on asset allocation for a dividend growth and income portfolios? Equities, private credit, hybrids, fixed income, covered call etfs
Covered call etfs have seen great popularity (JEPI having some of highest inflows in the US market over the last 5 years) but dont have a lot of discussion domestically.
Perhaps speak on the cyclical nature of the asx200 with its limited dividend growth contrasted with the US markets dividend growth focus ie SCHD. Highlighting that there is a gap in the ASX retail market for international dividend growth etfs.
Maybe a cautionary tale on pursuing yield without regard to fees with ETFs like LEND which has a total of 6% in fees which is only disclosed in its PDS.
Just a few ideas.
Thanks again for your content its has really helped gain my footing in my investing journey.

[@RaskFinance]

These are all wonderful mate. Thank you.
Speaking of dividend growth, take a look at this article I put together last week:
www.raskmedia.com.au/2024/07/21/asx-20-asx-200-or-asx-300/
And the community discussion about it:
community.rask.com.au/c/asx-shares/asx-20-200-300-data-top-performers
I reckon you’ll enjoy that. Keen to hear your thoughts.
Owen

[@Ragnar6000]

He sounds a little to biased towards ETFs {but then he is in the ETF business} myself i do have a ETF and also a LIC in my portfolio, but i actually treat the LIC as just another Blue chip stock ....they are simply in the business of owning stock in other businesses!