The ASX income revival, why yield is back on the investor agenda and where the traps are

Australian investors are rediscovering income.

In July, income focused ETFs attracted a record A$1.8 billion of net inflows, almost one third of all ETF money entering the market, with bond ETFs alone attracting a record A$1.4 billion.

That is a meaningful shift in investor behaviour. It also suggests investors are looking beyond traditional growth assets for more dependable portfolio cash flow.

The renewed interest does not mean investors should simply chase the highest advertised yield. Instead, it highlights the return of an old Australian investment preference, dividends, franking credits and dependable cash flow, particularly as investors. . .