Dividend Investing: 2 ASX ETFs Focused on Income
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These two ETFs have their focus on dividend yield thus comprise of high dividend stocks.
The Vanguard Australian Shares High Yield ETF (ASX: VHY)
gives investors access to Australian companies that are known to pay higher than average dividends. It follows the FTSE Australia High Dividend Yield Index which has 75 big cap companies on the ASX but does not include A-REITs. To keep things balanced the ETF has limits like 40% max in one sector and 10% max in one company. Since it started back in 2011, VHY has made a good track record, showing a 10 year annualised return of 9.89% and a one year return of 18.07% as of August 2025.
It charges a low expense ratio of 0.25% per annum and pays income distributions every quarter making it a cost friendly option for dividend seekers. The portfolio is heavy on sectors with high yields like financials , materials  and energy. Top holdings as of late August are big names like BHP, Commonwealth Bank, Westpac, NAB and Telstra. The current dividend yield forecast is 4.1% which is quite attractive against the broader market. For those who want steady dividends along with long term growth, VHY gives a solid and diversified option.
The Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)
gives investors access to 50 Australian companies chosen for their strong forecast dividend yields. It follows the S&P/ASX 200 High Yield Select Index which aims to give steady income and some capital growth while avoiding âdividend trapsâ by cutting out firms with weak payout ratios or too much dividend volatility. HYLD was started in August 2025 and has a expense ratio of only 0.25% per annum which makes it a cheap choice for investors wanting stable income.
HYLD pays income every month and the index had a trailing dividend yield of 4.46% in August 2025. The fund is mostly tilted towards financials and materials with good exposure also to consumer discretionary, energy and industrials. Its biggest holdings are Westpac, National Australia Bank, BHP and Wesfarmers as of September 2025 which are some of the biggest dividend players in Australia. The fund tries to beat the wider market in terms of yield and can be seen as a solid pick for income focused investors.Â
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