The VanEck Australian Banks ETF (MVB) provides simple concentrated exposure to Australia’s major banks, with performance dictating the largest weightings: ANZ (21%), NAB (21%), CBA (19%), and Westpac (19%) – in other words, the ETF reweights into strength. This is a simple and reasonably cheap (0.28% pa fees) way to get exposure to the big banks, with the ETF ~4% mostly franked yield.
- Over the last 12-months the MVB ETF paid a grossed-up ~5.2% yield, paid quarterly, but recent weakness has seen the ETF correct ~12% from its 2026 high.
The banks have been out of favour of late as housing prices and turnover slide, but they remain solid businesses; it’s all a matter of at what price. They are already starting to look attractive for yield to MM, although we are waiting for further weakness before we consider increasing exposure.
- We can seed the MVB ETF testing the $40 area over the coming weeks/months where the risk/reward will be attractive, i.e. around 4% lower.
MM is neutral towards the MVB ETF around $41.50
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