iShares ETFs cover a broad range of asset classes, risk profiles and investment outcomes. To understand the appropriateness of our funds for your investment objective(s), please visit our product webpages.
iShares Enhanced Cash ETF
https://www.blackrock.com/au/products/287042/
This product is likely to be appropriate for a consumer:
• who is seeking capital preservation and/or income distribution
• using the product for a whole portfolio solution or less
• with no minimum investment timeframe, and
• with a very low risk/return profile
iShares Credit Income Active ETF
https://www.blackrock.com/au/products/347181/
This product is likely to be appropriate for a consumer:
• who is seeking income distribution and/or capital preservation
• using the product for a core component of their portfolio or less
• with a minimum investment timeframe of 3 years, and
• with a medium risk/return profile
iShares World Equity High Income Complex ETF
https://www.blackrock.com/au/products/351490/
This product is likely to be appropriate for a consumer:
• who is seeking capital growth and/or income distribution
• using the product for a core component of their portfolio or less
• with a minimum investment timeframe of 5 years, and
• with a medium to high risk/return profile
iShares S&P/ASX Dividend Opportunities ESG Screened ETF
https://www.blackrock.com/au/products/251922/
This product is likely to be appropriate for a consumer:
• who is seeking capital growth and/or income distribution
• using the product for a core component of their portfolio or less
• with a minimum investment timeframe of 5 years, and
• with a medium to high risk/return profile
Investing for income is no longer just for retirees - according to new iShares research, more Australians are seeking extra earnings earlier in life. Through a new generation of ETFs, investors can harvest income across bonds, equities and active management, helping to support changing financial needs.
Key takeaways
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01
Investing for income is an increasingly important goal for younger Australian investors as well as retirees, with more than 1 in 3 ETF investors now holding an income ETF as part of their portfolio1
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02
Rising inflation and changing work patterns have driven a greater desire for working professionals to look at supplementing their earnings with income-generating investments
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03
Income ETFs are expanding in Australia as a product category, with approximately 90 income-focused exposures available across the ASX and Cboe2. Different strategies can serve different roles within a portfolio depending on an investor’s objectives
Australians are seeking income earlier in life
For many Australians, investing for income is no longer something reserved for retirement. Rising living costs, changing work patterns and a desire for greater financial flexibility are encouraging more investors to look for ways to generate regular income while they're still working.
The inaugural iShares ETF Insights Report - based on a survey of 3133 Australian adults in March 2026 - shows that rather than pre-retirees, investors aged 24–55 are the most likely to have started investing to generate a regular income.
Around 36% of existing ETF investors already use income ETFs, and a further 44% of prospective ETF investors are considering purchasing an income ETF over the next 12 months.
The findings of the report reflect a broader shift in how Australians are thinking about investing. Rather than simply accumulating wealth for retirement, many are looking to build investment portfolios that can help supplement wages today.
Why income matters more than ever
Cost-of-living pressures have fundamentally changed household budgets over recent years.
According to the Australian Bureau of Statistics, consumer prices have increased by more than 20% cumulatively since 2020, while wages have risen by around 16–18% over the same period (see chart below).
Although inflation has moderated from its 2022 peak, many essential expenses—including housing, insurance and utilities—remain materially higher than five years ago.3
Australian inflation vs wages, 2020-2026
Source: Australian Bureau of Statistics, 31 March 2026. Note, March 2020 rebased to 100.
For investors in their 30s, 40s and 50s, this has created a growing focus on generating an additional source of income that can help offset higher living costs without relying solely on salary increases.
The ETF Insights Report found that among ETF investors, the two biggest motivations for investing are taking greater control of their financial future (46%) and growing money more effectively than cash savings (43%).
Why ETFs?
Income investing has traditionally involved selecting individual dividend-paying shares, purchasing investment properties or investing in managed funds. ETFs now provide investors with a simpler, more flexible and cost-efficient way to access diversified sources of income across multiple asset classes.
For working-age investors, regular distributions may also provide behavioural benefits. Receiving income during periods of market volatility can help investors remain invested for longer, while diversified portfolios may reduce reliance on any single source of income.
Income investing by age group - % of Australian ETF investors currently holding an income ETF
Source: iShares ETF Insights Report 2026.
BlackRock's research also identified changing retirement patterns, greater income variability and portfolio confidence as key drivers behind increasing demand for income strategies among working-age investors.
As of early 2026, Australian jobs data indicates growth in part-time and casual work is far outstripping full time work4, pointing to a potential shift in how working professionals earn their income – and an important role for investing in helping to fill that gap.
Building an income portfolio
With around 90 different funds to choose from on the Australian market, across bonds, equities and multi-asset, income ETFs can serve different roles within a portfolio depending on an investor's objectives.
Managing cash more efficiently
For investors looking to earn income from cash while maintaining liquidity, the iShares Enhanced Cash ETF (ISEC) invests in a diversified portfolio of high-quality short-duration securities.
As interest rates remain above pre-pandemic levels, enhanced cash ETFs may provide an attractive alternative to holding larger balances in traditional transaction accounts, while offering more flexibility than term deposits or goal-based savings accounts (see table below).
Source BlackRock data as of 29 June 2026. *** means easiest access compared to other investment vehicles mentioned in this table
Seeking higher income from bonds
Investors prepared to take additional credit exposure may consider the iShares Credit Income Active ETF (ICME). The fund actively invests across corporate bond markets, with the objective of generating higher income while managing risk through active security selection.
ICME’s monthly distributions also offer a more consistent pattern of income versus many traditional quarterly distributing ETFs.
Generating equity income
For investors looking to move up the risk curve to income-generating shares, income-focused ETFs may offer a more diversified approach versus single high-dividend stocks.
The iShares World Equity High Income Complex ETF (WYNC) combines global equity exposure with an options strategy designed to generate regular income while remaining invested in international share markets.
By combining traditionally growth-focused global stocks with an income component, WYNC may offer a suitable complement to high-yield domestic shares where investors may have typically turned for income in the past – as the chart below demonstrates.
Harvesting income from shares – global vs local - Dividend yield of top 3 highest-yielding ASX200 stocks vs WYNC
Source BlackRock/Kalkine Research/APA Group/Rio Tinto data as of 31 March 2026. Yields exclude franking credits for Australian stocks. The iShares World Equity High Income Active UCITS ETF (WINC) is used as a proxy for WYNC. WINC inception date was 22 March 2024
Investors seeking Australian equity income may also consider dividend-optimised strategies such as the iShares S&P/ASX Dividend Opportunities ETF (IHD), which provides diversified exposure to Australian companies with attractive dividend characteristics.
Diversifying income sources
While no single investment strategy is suitable for every investor, combining multiple income sources can help create a more resilient portfolio.
For example, investors may choose to blend:
- enhanced cash for liquidity
- active bonds for regular income
- high-dividend Australian equities
- global equity income strategies
This type of approach may help reduce reliance on any one asset class while providing exposure to different drivers of portfolio income.
Income investing evolves
As Australians continue to work longer, transition more gradually into retirement and seek greater financial flexibility throughout their lives, investment income is becoming an increasingly important part of portfolio construction.
Rather than replacing employment income, ETFs are increasingly helping investors complement it by providing more flexible, varied and simplified ways to access income. For many mid-life Australians, that means income investing is no longer just about retirement—it's about building greater financial resilience today.
