Vanguard Australian Shares High Yield ETF (VHY) $80.36

We believe the next few months, at least, are likely to favour the value stocks, and the VHY ETF is closely correlated with value-style exposure, even though it’s not a pure “value factor” ETF. It’s skewed toward high dividend-paying stocks, which are typically heavy exposure to banks, resources, utilities and telcos, classic value/cyclical sectors, while being underweights sectors like tech and healthcare, which lowers growth sensitivity.

We expect ongoing market volatility as we head through FY26, making this ETF a reasonable investment – it pays a dividend quarterly and is forecast to yield  ~3.7% in the next 12-months.

• We like the VHY for yield and potential market outperformance in the coming months/year.