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VHY

$82.80+0.4%Dividend / Income68/100
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Vanguard Australian Shares High Yield ETF · Vanguard

Data as at 29 March 2026

TL;DR

Tracks Australian companies with high forecast dividend yields, selecting and weighting by yield rather than market cap. Emphasises income distribution over capital growth.

MER (Annual Fee)
0.25%
#1 lowest in Dividend / Income
1Y Return
+21.4%
3Y Return (p.a.)
+14.1%
Dividend Yield
7.28%
Trailing 12 months
AUM
$7,041.2M
Assets under management
Avg Daily Turnover
$11.2M
Avg shares × unit price
Unit Price
$82.80
As at 29 March 2026
Provider
Vanguard
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Strategy

Follows the FTSE Australia High Dividend Yield Index, selecting ASX-listed companies forecast to pay above-average dividends in the next 12 months. Rebalances quarterly to capture companies with the highest forward yields.

Top Holdings

Key Fact

Australian dividends are exceptionally high by global standards partly because of the franking credit system. VHY's portfolio of Australian high-yielders carries significant imputation credits that can add 1-2% to the after-tax yield for resident Australian investors.

Suited for

Retirees and income-focused investors who want regular income from Australian equities. Australian dividends frequently carry franking credits, which increase the after-tax return for Australian investors.

Risks

High-yield stocks can be value traps — a company paying a high dividend may be doing so because its share price has fallen ahead of an expected dividend cut. Banks and miners dominate the high-yield universe.

VHY Comparisons

ETFCheck Score68/100
Fees (40%)63
Fund Size (25%)80
Liquidity (20%)71
Yield (15%)61
How scores are calculated →
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Frequently Asked Questions - VHY

How does VHY use forecast yield instead of trailing yield and why does that matter?+
Unlike most dividend ETFs that select stocks based on historical dividends paid, VHY's FTSE Australia High Dividend Yield Index uses broker consensus forecasts of future dividends to rank and weight holdings. This forward-looking methodology means companies expected to cut dividends are removed at quarterly rebalances before the cut occurs, protecting investors from yield traps. For Australian SMSF investors relying on predictable income, this approach has helped VHY maintain its approximately 5.42% yield more consistently than backward-looking competitors like SYI or IHD.
How much of VHY's income comes with franking credits and what does that mean for SMSF refunds?+
VHY's portfolio is dominated by Australian banks (CBA, NAB, ANZ, Westpac) and miners (BHP, Rio Tinto) that typically pay fully franked dividends. Historically, approximately 70-80% of VHY's distributions carry franking credits. For SMSFs in pension phase paying 0% tax, this generates valuable franking credit refunds from the ATO - effectively boosting the grossed-up yield well above 5.42%. Individual investors on lower marginal tax rates similarly benefit, making VHY one of the most tax-efficient income ETFs available on the ASX.
What are the risks of VHY's heavy concentration in banks and miners for Australian investors?+
VHY's top holdings typically allocate over 40% to the big four banks and 15-20% to BHP and Rio Tinto, creating significant sector concentration risk. A housing downturn increasing bank bad debts, or a China-driven commodity price collapse, could simultaneously hit VHY's largest positions and force dividend cuts. The 0.25% MER is competitive but doesn't hedge against this Australian economic cycle risk. Investors already holding bank shares directly or through VAS should assess total portfolio bank exposure before adding VHY, as correlation between these holdings is extremely high.
How does VHY compare to Vanguard's own VAS for Australian equity income investors?+
VAS tracks the ASX 300 with a 3.6% yield at 0.07% MER, while VHY targets approximately 60 high-yielding stocks delivering 5.42% yield at 0.25% MER. VHY sacrifices diversification and growth exposure (fewer tech and healthcare stocks) for higher immediate income. VAS includes growth companies like CSL and Goodman Group absent from VHY, providing better long-term total return potential. Australian SMSF investors in pension phase often prefer VHY for cash flow, while accumulation-phase members may favour VAS for superior total returns at a lower management cost.