Four ASX-listed ETFs with dividend yields of nearly 5% or more


Exchange traded funds (ETFs) are one of the most sought-after investment instruments worldwide. In Australia too, these funds are actively lapped up by investors looking for diversification at low costs. The industry of ETFs has seen a marked boom in the last ten years, with over AU$20 billion being pumped into Australia in 2021 alone.

However, the industry has witnessed some weakness in the past few months, mainly on account of overall decline in market sentiment the world over.

According to reports, assets under management (AUM) in the Australian ETF industry plunged over 1.5% month on month, ending May at AU$131.3 billion. Despite this fall, ETFs continue to be in demand among investors. The month of May saw a fresh inflow of AU$1.3 billion in the industry.

What are ETFs?

An ETF basically tracks an index, sector, commodity, or other assets and trades on the stock exchange, similar to that of a regular stock.  These funds are popular among investors as these come with low expense ratios and fewer broker commissions. Investors can easily access some of the best stocks globally via ASX-listed ETFs.

On this note, let’s discuss a few Australian dividend ETFs and global dividend ETFs listed on the ASX. The funds have dividend yields of nearly 5% or more.

SPDR MSCI Australia Select High Dividend Yield (ASX:SYI)

The ETF seeks to closely track the performance of the MSCI Australia Select High Dividend Yield Index. The fund has an annual dividend yield of 5.98% as of Thursday’s closing price. This index tracks 32 holdings. The ETF closed at AU$28.69 on Thursday.

iShares S&P/ASX Dividend Opportunities ETF (ASX:IHD)

The ETF tracks the performance of the S&P/ASX Dividend Opportunities Accumulation Index before fees and expenses. The index measures the performance of 50 ASX-listed stocks that offer high dividend yields. The fund has an annual dividend yield of 5.76%. The ETF closed at AU$12.72 on Thursday.

Vanguard Australian Shares High Yield ETF (ASX:VHY)

The fund seeks to match the return (income and capital appreciation) of the FTSE ASFA Australia High dividend Yield Index before considering fund fees and expenses. The ETF tracks 65 holdings. The fund has an annual dividend yield of 5.12%. The ETF closed at AU$62.94 on Thursday.

ETFS S&P/ASX 300 High Yield Plus ETF (ASX:ZYAU)

The ETF aims to provide investors with a return that tracks the performance of the S&P/ASX 300 Shareholder Yield index. It tracks 40 high dividend payers from the ASX 300 Index. The fund has an annual dividend yield of 4.92%. The ETF closed at AU$8.53 on Thursday.

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