How to build passive income with 6 ETFs (without chasing yield)

In this Australian Finance Podcast episode, Owen Rask is joined by Hugh Lam from Betashares to build a six-ETF watchlist for investors chasing passive income without sleepwalking into yield traps. Rather than treating income as a race to the highest percentage, they step through where ETF income actually comes from, why total return still matters, and how to think about blending shares, bonds, credit and cash inside one portfolio. Hugh brings three Betashares ideas to the table: ROYL for global royalties, INCM for global dividend-paying companies, and ECRD for enhanced credit income. Owen counters with HYLD for Australian dividend and momentum exposure, GGOV for long-duration US Treasuries, and MMKT for money-market cash exposure. Along the way, they explain why a 7% yield is not automatically better than 4%, how rebalances and capital gains can distort payout figures, and why investors need to look under the hood before buying any income ETF. The conversation also unpacks the trade-offs that matter most in 2026: dividend traps, duration risk, leverage inside credit products, and the role cash-like ETFs can play when markets get jumpy. If you want a practical framework for researching passive-income ETFs, comparing yield with quality, and building a more resilient portfolio, this episode is a strong place to start. Episode resources Buy Gemma’s book “The Money Reset”: https://amzn.to/42Uz0aK Speak with the Rask Advice team: https://rask.au/advice Ask a question (select the Finance podcast): https://bit.ly/R-quest Show partner resources View Betashares range of funds: https://bit.ly/beta-25 Join Pearler using the code "RASKSWITCH" and get $32 of Pearler Credit: https://bit.ly/Pearler Get 50% off your first two months using PocketSmith: https://bit.ly/R-PocketSmith Rask resources All services: https://bit.ly/R-services Financial Planning: https://bit.ly/R-plan Invest with us: https://bit.ly/R-invest Access Show Notes: https://bit.ly/R-notes Ask a question: https://bit.ly/R-quest We love feedback! https://raskau.typeform.com/to/ZbfHy6IP Follow us on social media Instagram:   / rask.invest   TikTok:   / rask.invest   DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg