High-Yield ASX ETFs for Passive Income: QMAX and YMAX

Thursday, May 29, 2025 6:59 pm ET1min read

Two high-yield ASX ETFs for passive income are Betashare's Nasdaq 100 Yield Maximiser Fund (QMAX) and Australian Top 20 Equity Yield Maximiser Fund (YMAX). QMAX provides exposure to top US tech companies and a trailing distribution yield of 6.9%, while YMAX focuses on Australia's top 20 blue-chip companies and a trailing 12-month distribution yield of 7.7%. Both ETFs use a covered call strategy to boost income.

In the face of declining interest rates, investors seeking passive income are exploring alternative investment strategies. Two standout ASX ETFs that offer high yields through a covered call strategy are Betashare's Nasdaq 100 Yield Maximiser Fund (ASX: QMAX) and Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX).

Nasdaq 100 Yield Maximiser Fund (QMAX)

The Nasdaq 100 Yield Maximiser Fund (QMAX) provides exposure to the top 100 companies on the Nasdaq index, including tech giants like Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), Tesla (NASDAQ: TSLA), and Microsoft (NASDAQ: MSFT). By employing a covered call strategy, QMAX boosts income by selling call options over its holdings, generating additional income for investors. This strategy results in a trailing distribution yield of 6.9%, paid out quarterly [1].

Australian Top 20 Equity Yield Maximiser Fund (YMAX)

For investors focused on Australian blue-chip companies, the Australian Top 20 Equity Yield Maximiser Fund (YMAX) is a compelling option. This ETF holds the top 20 ASX-listed companies across key sectors like financials, materials, and healthcare. Household names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES) are among its holdings. Like QMAX, YMAX uses a covered call strategy to enhance income, delivering a trailing 12-month distribution yield of 7.7% with dividends paid quarterly [1].

Both QMAX and YMAX are attractive options for investors seeking strong, regular income in a low-interest-rate environment. Their covered call strategies enable them to generate higher yields than traditional dividend ETFs, making them valuable additions to income-focused portfolios.

References

[1] https://www.fool.com.au/2025/05/29/2-top-asx-etfs-to-buy-for-passive-income/

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