Thoughts on the Vanguard Australian Shares High Yield ETF (ASX: VHY)

Hi Paul,

Your kind words always put a smile on MM faces!

For reference, we discussed the Vanguard Australian Shares High Yield ETF earlier in the month here, it offers investors a straightforward and cost-effective way to access a diversified portfolio of Australia’s leading income-generating companies. The portfolio comprises around 85 ASX-listed stocks spanning sectors such as financials, resources and energy, with a focus on businesses expected to produce relatively strong dividend yields.

Importantly, it’s worth noting the ETF has approximately 34% exposure to the major banks, meaningful, but arguably less concentrated than many investors assume when seeking yield within the Australian market.

• Over the last 12-months the ETF has yielded 5.46%, mostly franked, with dividends paid quarterly.

We can see some growth from this ETF when the RBA’s tightening cycle comes to an end, probably this year in our opinion.

The ETF has performed strongly over the last few years tracking its benchmark, the FTSE Australia High Dividend Yield Index, successfully, outperforming it over the last 3-years. We don’t currently hold the ETF in our Core ETF Portfolio, but we like it and may moving forward.

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Vanguard Australian Shares High Yield ETF (VHY) v Benchmark

LAST UPDATED 27/05/2026 12:48

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Vanguard Australian Shares High Yield ETF (VHY) v Benchmark

LAST UPDATED 27/05/2026 12:48