Opportunities to enhance income with BetaShares

While interest rates are on the rise, yields from cash and term deposits remain low, presenting a significant challenge to Australian investors seeking income.

Nevertheless there are still investment options that allow you to generate income from your portfolio. BetaShares’ range of ASX-traded income solutions provides opportunities to enhance income streams across asset classes and strategies – including cash, bonds, hybrids and shares.

BetaShares income solutions are a simple and cost-effective way to position your portfolio for your income goals.

Diversify your income streams across asset classes

Access income opportunities from cash, bonds, hybrids, Australian shares, and international shares. 

  1. Cash

    Monthly income combined with a high level of capital security.

  2. Fixed income

    Monthly distributions from diversified portfolios of Australian bonds.

  3. Hybrids

    Exposure to a diversified portfolio of hybrid securities, providing tax-efficient income.

  4. Australian shares

    Regular, equity-income distributions from portfolios of Australian companies.

  5. International shares

    Access portfolios of international shares, paying regular distributions.

Generate income from International Shares

Look beyond Australia’s borders for income opportunities, with our range of international share funds providing quarterly income.

All our international funds are Australian-domiciled, which means there is no additional paperwork or administration when you invest – no US W8-BEN forms to fill out, and no risk of US estate tax implications.

Generate income from Australian Shares

Explore our wide range of Australian share funds, focused on delivering regular and attractive income.

Generate income from Hybrids

Due to their attractive income levels, franking credits and higher levels of capital stability compared to shares, hybrid securities have been popular with Australian investors.

While hybrids offer a number of benefits, many investors may not appreciate that they come with risks and complexity. The diversified exposure offered by BetaShares’ professionally and actively-managed HBRD fund aims to reduce the risk of directly holding individual hybrids.

Generate income from fixed income funds

Fixed income has long been acknowledged as a core building block of a balanced portfolio, providing defensive characteristics and diversification benefits to investors. With generally lower risk than shares, fixed income is a natural complement to a share portfolio.

BetaShares’ comprehensive fixed income fund suite provides exposure to Australian government bonds, Australian investment grade corporate bonds, Australian bank senior floating rate bonds, or actively managed Australian fixed income securities.

Generate income from cash

Finding attractive returns on cash deposits has become increasingly difficult, with many investors looking for better ways to invest their cash.

While term deposits have traditionally been a way for investors to benefit from better interest rates than those available from ‘at call’ bank accounts, it usually means locking cash away. Accessing cash from term deposits before the end of the term can be costly.

BetaShares’ Australian High Interest Cash ETF (ASX: AAA) provides investors with the benefits of an investment that is accessible daily via a trade on the ASX, as well as regular income, paid monthly.

What is an ETF?

An ETF or Exchange Traded Fund is an investment fund that typically aims to track an asset class or a basket of assets. ETFs are cost-effective, flexible, and simple to use.

  • Investing in ETFs
    Investing in ETFs is simple, as they trade on the ASX like shares. You can invest in ETFs the way you would normally buy shares, for example through an online brokerage platform, or by speaking to a financial adviser.
  • Can I use ETFs in a self-managed super fund (SMSF)?
    The popularity of ETFs as an investment vehicle can, in part, be attributed to the way SMSFs have embraced ETFs over the past few years. SMSFs are increasingly using ETFs to achieve their financial goals.
Learn more about ETFs

Using ETFs for income

Do ETFs pay distributions?

ETFs are vehicles for gaining exposure to underlying assets and securities, and provide distributions based on those assets or securities.

  • Depending on the ETF, distributions are paid on a monthly, quarterly, half-yearly or annual basis.
  • Depending on the investment strategy, the distribution could be made up of dividends, interest, and/or capital gains  realised by the ETF.

ETFs and franking credits

  • When Australian resident companies distribute after-tax profits in the form of franked dividends, franking credits are attached to those dividends.
  • ETFs that invest in shares are eligible to receive their portion of dividends paid during the distribution period. This includes franking credits, as applicable, in the case of Australian shares ETFs.
  • Dividends and franking credits associated with the underlying assets are normally passed on to investors.
  • Distributions paid by the ETF will be assessable for tax in the hands of the investor.

Investing involves risk. The value of an investment and income distributions can go down as well as up. Before making an investment decision you should consider the product disclosure statement and your particular circumstances, including your tolerance for risk, and obtain financial advice.