3 ETFs Designed to Keep the Income Flowing

Why It Matters

By integrating diversified bank debt, covered‑call equity, and high‑dividend ETFs, Australian investors can rebuild income streams amid falling yields and market volatility, protecting portfolios against inflation and sector‑specific shocks.

Key Takeaways

• Australian dividend yields at decade lows, prompting alternative income solutions.
• Global X's BANK ETF offers ~6% yield via diversified bank debt.
• AYLD uses covered calls to generate ~10% yield, reducing equity risk.
• ZYAU provides high‑dividend exposure across sectors with limited concentration.
• Combining all three ETFs creates multi‑asset income streams and diversification.

Summary

The video introduces Global X’s trio of income‑focused ETFs designed to address Australia’s deteriorating dividend landscape. Mark Jokum explains that ASX 200 yields have fallen for three consecutive years, prompting investors to look beyond traditional bank equities toward diversified credit, covered‑call equity, and high‑dividend strategies. Key data points include the BANK ETF delivering roughly 6% yield from senior, subordinated and hybrid bank debt, AYLD’s covered‑call structure generating about 10% total return through dividends, franking credits and options premiums, and ZYAU’s sector‑balanced high‑dividend exposure offering 1‑1.5% excess yield over the broader index while capping individual stock and sector weights at 10%. Notable quotes highlight the “negative equity risk premium” of bank debt and the “three‑source income” benefit of covered calls, underscoring how each product fits a different point on the cash‑bond‑equity continuum. Jokum stresses that hybrids rolling off through 2032 will naturally shift the BANK ETF toward senior debt, and that AYLD’s risk‑adjusted performance mirrors the ASX 200 with a third of the volatility. The overarching implication is that layering these ETFs—bank credit for fixed‑income yield, covered calls for equity‑like income with downside protection, and a diversified high‑dividend basket for sector spread—offers retirees and income‑seeking investors a resilient, multi‑source cash flow that can outpace inflation while mitigating concentration and duration risks.

Original Description

ETFs are reshaping how investors think about cash flow generation. Rather than relying solely on traditional dividends or bond coupons, investors can now construct more targeted income outcomes using tools like covered calls, bank credit exposure and diversified yield-focused equity portfolios.

That does not eliminate risk. There are still no free lunches in markets. But it does give investors more flexibility around how they source income, manage volatility and diversify their return streams.

As Global X Senior Product and Investment Strategist Marc Jocum puts it:

“Income investing today should really be about creating multiple sources and multiple diversified streams of income. That’s your best way to protect yourself against left tail risk or anything the market might throw at you.”

To unpack how that is evolving, I spoke with Jocum as part of Livewire’s Income Series 2026. In the interview above, he explains why Australia’s traditional income playbook may be under pressure, why bank credit is becoming increasingly attractive relative to bank equities, how covered call strategies can monetise volatility, and why diversified income streams may matter more than ever in a world of elevated uncertainty.

He also outlines how Global X’s BANK, AYLD and ZYAU ETFs can work together inside a portfolio to help investors construct more resilient income outcomes.

TIME CODES

00:00 – Why income investing is getting harder

00:50 – The overlooked opportunity in bank debt

02:39 – How bank credit compares to cash, bonds and shares

04:57 – Covered calls explained

06:47 – The upside investors give up for higher income

08:07 – Building a diversified income portfolio

09:45 – Three income strategies that can work together

11:28 – The biggest opportunity for income investors in 2026

12:58 – Final thoughts