VASvsVHY
Diversified ASX exposure or concentrated income play?
Vanguard Australian Shares Index ETF · Vanguard Australian Shares High Yield ETF
VHY yields 7.28% vs VAS's 2.88% - a meaningful income premium. The trade-off: high-yield ETFs concentrate in banks and property, so total returns can lag a broad market index in growth-led periods. Choose based on whether you need income now or prefer total return.
Score Breakdown
Fund Profiles
As Australia's largest ETF by assets under management, VAS is managed by Vanguard and tracks the S&P/ASX 300 Index, covering 300 of the biggest companies listed on the ASX. By including 100 additional stocks beyond the ASX 200, VAS offers slightly broader diversification across mid-cap names that ASX 200 ETFs miss, while still capturing the same large-cap heavyweights. Investors seeking the most comprehensive single-fund Australian equity exposure - with franking credits flowing through distributions - will find VAS an excellent core domestic holding for portfolios and SMSFs alike.
Vanguard manages VHY, an ASX-listed ETF tracking the FTSE Australia High Dividend Yield Index, which screens the ASX 300 for companies with above-average forecast dividend yields. The resulting portfolio tilts heavily toward banks and property companies - sectors known for generous payouts - and fully passes through franking credits attached to qualifying dividends. Income-focused investors, retirees, and SMSF trustees in pension phase seeking enhanced yield from Australian equities with valuable franking credit benefits will find VHY a compelling income-generation tool.