3 Best ASX High-Yield ETFs to Boost Your Passive Income in 2026

High yield ETFs are one of the best instruments of passive income and following are the top 3 high Yield ETFs which offer investors diversified exposure to lucrative Australian companies. It can be particularly attractive for investors who seek a balance between passive income and the potential for long-term capital growth without having to select individual dividend stocks.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Has given investors a simple way to gain diversified exposure to Australian companies with relatively high dividend yields.

The ETF will track the FTSE Australia High Dividend Yield Index and has around 92 companies while exposure to any one industry is capped at 40% and any individual company at 10%.

What has made it even more attractive is a relatively low annual management fee of 0.25% and the ETF distributes income on a quarterly basis.

Financials make up 40.6% of the portfolio while basic materials account for 21.0% and energy companies represent 10.3% of the overall portfolio.

VHY can be an attractive option for investors who want diversified Australian dividend exposure because its current annual reliable dividend yield is 3.48%.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

Designed for investors who seek regular income as it has exposure to 50 high-yield Australian companies through the S&P/ASX 200 High Yield Select Index.

The ETF has a competitive management fee of 0.25% per year and distributions happen each month. It was launched on 1 August 2025 which has made it a relatively new option for investors who seek high-income exposure to Australian shares.

HYLD’s approach is more selective approach than a simple high-dividend strategy as it will screen out potential "dividend traps" such as companies with potentially unsustainable dividend yields or unusually high volatility relative to their forecast dividend payouts.

The ETF as of 31 July 2026 had a 12-month trailing dividend yield of 4.15% and HYLD could appeal to investors who want monthly distributions and diversified exposure to established Australian companies.

State Street SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI)

is a very good option backed by diversified exposure to Australian companies that offer relatively high dividend income.

SYI has management costs of 0.20% per year and will distribute income on a quarterly basis while its listing date of 28 September 2010 has given it a considerably longer operating history than many newer high-yield ETFs.

The ETF holds 57 companies and its portfolio includes major Australian businesses such as National Australia Bank, ANZ, Westpac, CSL and Telstra which provide exposure to established companies across several sectors.

Financials have the largest portfolio allocation at 48.06% followed by healthcare at 9.97% while the top three holdings alone account for more than 30% of the fund.

SYI has also posted solid performance with returns of 12.93% annualised over three years and 9.81% over five years as of 31 July 2026.

(Source: Company Announcements)