VHY - Vanguard Australian High Yield ETF

[divs4ever]

Interesting term 'word salad'.

You've identified some of the different investment metrics between VHY and VAS but I think the point was raised - what's the best return. Can you tell me which one is best on a simple return basis?

VAS:

View attachment 169143

well VHY by design targets stocks likely to pay divs AND has the option of weighting those stocks by likely div. returns

as compared the VAS which will often include large/mid cap. stocks may or may not pay a div. in the next two years

BUT if capital gains are your focus VAS is more likely to snag the bigger gainers ( as it includes more 'growth stocks ' )

since we are looking at returns one might also consider the franking credits attached to the divs ( if you can utilize them )

VAS

TYPE	CPS	FRANKED	EX-DIV DATE	PAY DATE
Interim	71.620	74.00%	02/01/2024	17/01/2024
Interim	128.810	87.00%	02/10/2023	17/10/2023
Final	88.900	82.00%	03/07/2023	18/07/2023
Interim	57.700	87.00%	03/04/2023	20/04/2023
Interim	74.970	82.00%	03/01/2023	18/01/2023
Interim	145.060	89.00%	03/10/2022	18/10/2022
Final	215.950	66.00%	01/07/2022	18/07/2022
Interim	199.590	42.00%	01/04/2022	20/04/2022
Interim	69.650	63.00%	04/01/2022	19/01/2022
Interim	140.730	87.00%	01/10/2021	18/10/2021

VHY

TYPE	CPS	FRANKED	EX-DIV DATE	PAY DATE
Interim	61.790	76.00%	02/01/2024	17/01/2024
Interim	129.910	89.00%	02/10/2023	17/10/2023
Final	77.400	89.00%	03/07/2023	18/07/2023
Interim	56.430	89.00%	03/04/2023	20/04/2023
Interim	78.960	93.00%	03/01/2023	18/01/2023
Interim	128.220	93.00%	03/10/2022	18/10/2022
Final	124.690	94.00%	01/07/2022	18/07/2022
Interim	82.810	93.00%	01/04/2022	20/04/2022
Interim	48.210	84.00%	04/01/2022	19/01/2022
Interim	158.570	93.00%	01/10/2021	18/10/2021

but one difference is VHY is a share normally under $70 while VAS is hovering around the $90 mark

a different risk is 'concentration risk'

VHY

top 10 holdings

CODE	COMPANY	ASSET
BHP	BHP Group Ltd	10.22%
CBA	Commonwealth Bank of Australia	9.45%
NAB	National Australia Bank Ltd	7.18%
WES	Wesfarmers Ltd	6.40%
WBC	Westpac Banking Corp	5.95%

Top 10 Holdings

CODE	COMPANY	ASSET
WDS	Woodside Energy Group Ltd	5.82%
ANZ	ANZ Group Holdings Ltd	5.80%
RIO	Rio Tinto Ltd	4.99%
MQG	Macquarie Group Ltd	4.97%
FMG	Fortescue Ltd	4.57%

VAS

top 10 holdings

CODE	COMPANY	ASSET
BHP	BHP Group Ltd	11.01%
CBA	Commonwealth Bank of Australia	8.07%
CSL	CSL Ltd	5.96%
NAB	National Australia Bank Ltd	4.14%
WBC	Westpac Banking Corp	3.46%

Top 10 Holdings

CODE	COMPANY	ASSET
ANZ	ANZ Group Holdings Ltd	3.36%
MQG	Macquarie Group Ltd	2.84%
WES	Wesfarmers Ltd	2.79%
WDS	Woodside Energy Group Ltd	2.54%
RIO	Rio Tinto Ltd	2.17%

an investor holding some individual stocks is likely to have two or three holdings in the ETF top 10

 

[Belli]

You've identified some of the different investment metrics between VHY and VAS but I think the point was raised - what's the best return. Can you tell me which one is best on a simple return basis?

From a brief look VAS has more of a growth aspect whereas VHY is a greater distribution approach with less CG. I don't recommend one over the other. That's a decision for the investor.

In the same sphere as VHY is IHD with a MER of 0.3% but it is even more concentrated than VHY with 50 companies.

 

[Sean K]

Interesting.

 

[Gretsch]

I have both.
Have held VHY in the past but didn't feel comfortable with the price going nowhere.
I recently bought a small qty purely for the divs and so I can see first hand how it performs against my VAS.