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

[@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?

[@RaskFinance]

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

[@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.

[@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!