3 ASX ETFs to buy for lifelong income

If your goal is to build a portfolio that pays you — not just once or twice, but for decades to come — then ASX ETFs could be a brilliant place to start.

They offer instant diversification, reliable distributions, and take the stress out of stock picking.

Whether you're aiming to supplement your salary or fund your future retirement, the right ASX ETFs can deliver consistent passive income without the complexity.

Here are three to consider for lifelong passive income:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you want exposure to some of the biggest and most dependable dividend-paying companies on the ASX, then the Vanguard Australian Shares High Yield ETF is about as straightforward as it gets.

This ASX ETF tracks a high-yield index of Aussie shares, giving you diversified exposure to names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS). These are companies with a long history of returning capital to shareholders.

The Vanguard Australian Shares High Yield ETF pays quarterly distributions and typically offers a yield that comfortably beats the broader market. At present, it trades with a trailing dividend yield of 5.1%.

Betashares Australian Bank Senior Floating Rate Bond ETF (ASX: QPON)

If you're after a low-risk, consistent source of passive income, the Betashares Australian Bank Senior Floating Rate Bond ETF deserves a spot on your radar.

This ASX ETF invests in senior floating-rate bonds issued by the big four banks. These are investment-grade bonds that sit near the top of the capital structure, meaning they're considered relatively safe. And because the bonds have floating rates, income typically rises when interest rates do.

With monthly income payments and far less volatility than equities, the Betashares Australian Bank Senior Floating Rate Bond ETF offers an excellent income stream for those looking to lower risk or add stability to a dividend-heavy portfolio. Betashares recently tipped it as a buy for income investors.

Betashares S&P 500 Yield Maximiser ETF (ASX: UMAX)

Finally, if you want international exposure and enhanced passive income, the Betashares S&P 500 Yield Maximiser ETF is a clever way to get it.

This ASX ETF tracks the S&P 500 index, giving you access to some of the largest companies in the world — including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Coca-Cola (NYSE: KO) — while employing a covered call strategy to boost its yield.

Covered calls can reduce upside during bull markets, but they increase income in sideways or volatile markets — which is perfect for income-focused investors who value cash flow over capital gains.

The Betashares S&P 500 Yield Maximiser ETF pays quarterly and offers attractive distribution yields thanks to this strategy. At present, it stands at 4.7%.

The post 3 ASX ETFs to buy for lifelong income appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025