For investors seeking income from their investments, we compare Australian and global dividend-focused ETFs listed on the ASX using fund size, fees, reported spreads, total returns and historical distribution yields. VHY, SYI, IHD, RDV, ZYAU and AQTY are six Australian dividend ETFs listed on the ASX. Each takes a different approach to selecting dividend-paying companies. A higher distribution yield does not necessarily mean a higher total return or a more reliable income stream so whether you’re looking for consistent yield, strong total returns, or diversification, this guide can help you decide the right ETFs to enhance your income strategy.
For investors looking for diversified income portfolios the Stockspot Topaz Income Portfolio is designed to help investors earn higher annual income through a mix of high dividend ETFs across countries, assets, and sectors as part of a professionally managed diversified investment portfolio.
In this blog we explore:
- What are the best dividend ETFs of 2025
- Australian high dividend ETFs
- Stockspot’s verdict
- Active high dividend ETFs
- Global high dividend ETFs
- Should you invest in a dividend harvester ETF?
What are the best dividend ETFs?
Following the success of our Australian ETF Report, we compare Australian and global dividend ETFs listed on the ASX using fund size, management fees, reported spreads, total returns and historical distribution yields. All figures are current to 30 September 2026 where available.
We compare ETFs across 5 factors: size, costs and slippage, liquidity, returns and dividend yield and track record.
New high dividend income focused ETFs
2026
No new Australian high-dividend equity ETFs launched on the ASX in 2026. One existing fund, however, underwent a significant change.
On 1 June 2026, the fund formerly known as the VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) changed its name to the VanEck MSCI Australian Quality Plus ETF (ASX: AQTY), alongside a change in benchmark and investment strategy. AQTY now tracks the MSCI Australia IMI Quality Plus Index. At 30 September 2026, it had $35.6 million in funds under management, a management fee of 0.35% p.a. and a five-year annualised total return of 2.45%.
AQTY is an existing fund, not a newly launched ETF. Because its benchmark and investment strategy changed in 2026, its longer-term performance includes periods before the current strategy and may not reflect how the fund is managed today. Investors should consider this when assessing its track record.
2025
In 2025, Betashares launched the S&P Australian Shares High Yield ETF (ASX: HYLD), which aims to provide exposure to Australian companies selected for their forecast dividend yields.
HYLD launched on 1 August 2025 and charges a management fee of 0.25% p.a.
Best Australian high dividend ETFs
- iShares S&P/ASX Dividend Opportunities ESG Screened ETF (IHD)
- Russell High Dividend Australian Shares ETF (RDV)
- SPDR MSCI Australia Select High Dividend Yield Fund (SYI)
- Vanguard Australian Shares High Yield ETF (VHY)
- Global X S&P/ASX 200 High Dividend ETF (ZYAU)
- VanEck MSCI Australian Quality Plus ETF (AQTY)
Size
VHY remained by far the largest of the six Australian dividend ETFs compared, with $8.19 billion in funds under management at 30 September 2026. SYI had $739.2 million, IHD $407.1 million, RDV $342.2 million, ZYAU $100.0 million and AQTY $35.6 million.
| ASX Code | ETF Name | FUM at 30 June 2026 | FUM at 30 September 2026 | Change in FUM |
| IHD | iShares S&P/ASX Dividend Opportunities ESG Screened ETF | $402.8m | $407.1m | +$4.3m (+1.1%) |
| RDV | Russell High Dividend Australian Shares ETF | $341.9m | $342.2m | +$0.3m (+0.1%) |
| SYI | SPDR MSCI Australia Select High Dividend Yield ETF | $664.4m | $739.2m | +$74.8m (+11.3%) |
| VHY | Vanguard Australian Shares High Yield ETF | $7.67bn | $8.19bn | +$518.8m (+6.8%) |
| ZYAU | Global X S&P/ASX 200 High Dividend ETF | $95.5m | $100.0m | +$4.5m (+4.7%) |
| AQTY | VanEck MSCI Australian Quality Plus ETF | $30.8m | $35.6m | +$4.8m (+15.7%) |
Between 30 June and 30 September, FUM rose across all six funds. $74.8 million (11.3%), while VHY increased by $518.8 million (6.8%). AQTY recorded the largest percentage increase, up $4.8 million (15.7%), although it remained the smallest fund by FUM. Changes in FUM reflect both market movements and net investor flows, so they should not be interpreted as flows alone.
AQTY remained the smallest ETF in the group, with $35.6 million in funds under management at 30 September 2026, up from $30.8 million at the end of June.
Costs and slippage
SYI remained the lowest-cost ETF in this group, with a management fee of 0.20% p.a. VHY had the narrowest reported spread at 0.02%, while AQTY had the widest at 0.11%. Reported spreads narrowed between the June and September snapshots for all six ETFs, with the largest decreases for AQTY (from 0.27% to 0.11%) and RDV (from 0.18% to 0.08%).
| COST (INDIRECT COST RATIO) | BUY/SELL SPREADS (AKA SLIPPAGE) | |
| IHD | 0.23% | 0.11% |
| RDV | 0.34% | 0.08% |
| SYI | 0.20% | 0.07% |
| VHY | 0.25% | 0.02% |
| ZYAU | 0.24% | 0.16% |
| AQTY | 0.35% | 0.11% |
Liquidity
VHY recorded the highest monthly transacted value among the six ETFs at $18.1 million per day. SYI averaged an estimated $2.0 million per day, followed by IHD at $0.6 million, RDV at $0.5 million, ZYAU at $0.3 million and AQTY at $0.1 million. These estimates provide a guide to recent trading activity.
Returns and dividend yield
Performance is a total return figure which incorporates both the capital return (i.e. the growth) and income return (i.e. dividends).
We’ve previously written a blog proposing that a total return approach is more appropriate than focusing on high dividend yield returns alone.
At 30 September 2026, SYI recorded the highest one-year total return among the six ETFs at 16.8%, followed by VHY at 13.9%, ZYAU at 12.2%, IHD at 10.6% and RDV at 3.5%. AQTY returned -4.9% over the same period. The ranking changed from the quarter prior, when IHD had the highest one-year return at 22.5%.
SYI’s one-year total return rose from 15.0% at the end of June to 16.8% at the end of September, while RDV’s declined from 8.7% to 3.5%.
VHY returned 16.6% p.a. over three years and 14.1% p.a. over five years. SYI recorded 16.6% p.a. over three years and 13.9% p.a. over five years, while IHD returned 16.5% p.a. and 12.4% p.a., respectively. VHY had the highest five-year annualised return among the six ETFs compared.
IHD and SYI recorded three-year annualised total returns of 16.5% and 16.6%, respectively. Over five years, IHD returned 12.4% p.a. and SYI returned 13.9% p.a. RDV returned 13.8% p.a. over three years and 9.8% p.a. over five years.
AQTY returned -4.9% over one year, 5.5% p.a. over three years and 2.5% p.a. over five years. As AQTY changed its investment strategy and benchmark in 2026, its longer-term performance includes periods before the current strategy and should be interpreted with care.
The dispersion in performance across high dividend yield ETFs highlights the impact of differing methodologies, which can lead to varying exposures across companies and sectors. This is also reflected in distribution yields, which vary meaningfully across the cohort.
SYI had the highest historical distribution yield among the six ETFs at 7.3%, followed by IHD at 5.8%, ZYAU at 4.6%, RDV at 4.1%, AQTY at 3.9% and VHY at 3.6%. SYI remained the highest-yielding fund in the group, although its reported yield was lower than the 7.6% recorded at the end of June. IHD’s reported yield rose from 4.0% to 5.8% over the same period. Historical distribution yield is backward-looking and does not guarantee future distributions.
| 1 Year Total Return | 3 Year Total Return (P.A.) | 5 Year Total Return (P.A.) | Dividend Yield | |
| IHD | 10.6% | 16.5% | 12.4% | 5.8% |
| RDV | 3.5% | 13.8% | 9.8% | 4.1% |
| SYI | 16.8% | 16.6% | 13.9% | 7.3% |
| VHY | 13.9% | 16.6% | 14.1% | 3.6% |
| ZYAU | 12.2% | 14.8% | 7.7% | 4.6% |
| AQTY | -4.9% | 5.5% | 2.5% | 3.9% |
Track record and holdings
The six ETFs use different index methodologies, and their launch dates and index histories vary. Investors should compare each fund’s methodology and performance history in the context of its current investment strategy.
RDV was the first dividend ETF to launch out of the group and focuses on companies with high expected dividend yield while also having a consistency of earnings and dividend growth.
VHY is the most diversified with the largest number of holdings at 92.
| Index | Index history (inception date) | ETF history (inception date) | Number of holdings | |
| IHD | S&P/ASX Sustainability Screened Dividend Opportunities Index* | September 2010 | December 2010 | 55 |
| RDV | Russell Australia HighDividend Index | May 2010 | May 2010 | 50 |
| SYI | MSCI Australia Select HighDividend Yield Index | May 2010 | September 2010 | 56 |
| VHY | FTSE Australia High Dividend Yield Index | April 2011 | May 2011 | 92 |
| ZYAU | S&P/ASX 200 Index | December 2014 | June 2015 | 50 |
| AQTY | MSCI Australia IMI Quality Plus Index (confirm current benchmark) | December 2014 | May 2026 | 50 |
Stockspot’s verdict
The key difference between the six Australian share dividend ETFs is the methodology they use to come up with their underlying holdings. Each one has its own unique definition of what constitutes ‘high dividends’.
The dividend ETFs all use different rules to select companies, including forecasted dividend yields, quality screens, sustainability filters and dividend-growth measures. These differences can lead to different holdings and sector exposures.
For example VHY targets Australian shares with higher forecast dividend yields, while SYI follows its own high-dividend selection methodology. Investors should review each fund’s current index rules to understand how companies are selected and how the approach may affect sector exposure and distributions.
Given the methodology differences, all these ETFs will have different holdings as shown by the different sector allocations.
VHY remains Stockspot’s preferred Australian dividend ETF, it was selected due to its larger size, lower cost, tighter spreads and broader number of holdings. VHY is offered as part of our Stockspot Themes range for clients who are looking to enhance their income and dividends.
What are the top active dividend ETFs?
Five active or income-focused ETFs are included in this comparison: HVST, YMAX, EIGA, INIF and SWTZ. BetaShares Legg Mason Equity Income Fund (EINC) and BetaShares Legg Mason Real Income Fund (RINC) have delisted.
- BetaShares Australian Dividend Harvester Fund (managed fund) (HVST)
- BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (YMAX)
- eInvest Income Generator Fund (Managed Fund) (EIGA)
- InvestSMART Australian Equity Income Fund (Managed Fund) (INIF)
- Switzer Dividend Growth Fund (Managed Fund) (SWTZ)
The annual management fees for the active income-focused funds compared range from 0.64% for YMAX to 0.97% for INIF, compared with 0.07% for VAS and 0.25% for VHY. Fees are one factor to consider, but they do not determine performance on their own.
Key active dividend strategy changes in 2026
BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX). The fund shifted to monthly income payments (formerly quarterly), effective from January 2026.
Fees
| VAS | VHY | Active income ETFs (avg) | |
| Management Fee | 0.07% | 0.25% | 0.80% |
| Slippage | 0.02% | 0.02% | 0.32% |
| Total Cost of Ownership | 0.09% | 0.27% | 1.12% |
Performance
| VAS | VHY | |
| 1 Year total return | 3.2% | 13.9% |
| Historical distribution yield | 3.1% | 3.6% |
What are the top global dividend ETFs?
There are far fewer global share dividend focused ETFs. Australian companies are more likely than their global peers to pay out their earnings as dividends to shareholders, making domestic income ETFs more common.
There are two dividend focused ETFs for global shares:
- BetaShares Global Income Leaders ETF (INCM)
- SPDR S&P Global Dividend Fund (WDIV)
Below is a useful comparison of the two:
| INCM | WDIV | |
| Size ($m) | $107.1m | $417.0m |
| Cost | 0.39% | 0.35% |
| Slippage | 0.14% | 0.10% |
| 1 Year Return | 11.0% | 11.7% |
| 3 Year Return (p.a.) | 16.4% | 16.5% |
| 5 Year Return (p.a.) | 12.0% | 9.8% |
| Dividend yield | 5.0% | 10.4% |
Newly launched international income focused ETFs
New global dividend focused ETFs in 2026
Vanguard launched the Vanguard International Shares High Yield ETF (ASX: VIHY) in March 2026, providing exposure to high-yielding international shares. At 30 September 2026, VIHY had $64.4 million in funds under management, a management fee of 0.30% p.a. and a historical distribution yield of 1.33%. A one-, three- or five-year total return are not yet available due to its relative infancy.
Should you invest in a dividend harvester ETF ?
Dividend harvesting is a strategy that involves buying shares just before they pay dividends and selling them soon after dividends have been paid. At face value, this may appear to be an effective way to generate income without long-term exposure.
However, like any investment strategy that involves timing your entry and exit points, dividend harvesting has risks. The biggest risk with dividend harvesting is shares tend to fall in price on the day they pay their dividend, offsetting the value of the dividend received.
Therefore any amount you gain in the dividend is likely to be lost on capital returns.
What one hand giveth the other taketh away
Dividend-focused and dividend-harvesting strategies can produce a different mix of income and capital returns from broad share-market strategies. The balance depends on the fund’s rules, market conditions and the period measured, so a high distribution yield should not be considered in isolation from total return.
An example: The Betashares Dividend Harvester (HVST)
The Betashares Dividend Harvester (HVST) is an ETF that adopted a ‘dividend harvesting’ strategy. It invested in large ASX shares that are about to pay dividends. Before changing its underlying strategy in May 2022, it also sold futures contracts which is a form of hedging to reduce risk.
HVST recorded a one-year total return of 1.6%, a three-year annualised total return of 11.3% p.a. and a five-year annualised total return of 7.6% p.a. These figures represent total returns.
Income-focused strategies can produce a different balance between distributions and capital growth. Dividend harvesting strategies like HVST effectively shift returns from future capital growth into present income. There is no free lunch, only a different return profile. A higher distribution does not necessarily mean a higher total return.
It is similar to a bank increasing your interest rate from 2% to 5%, but funding the additional return by reducing your original deposit.
As you can see, dividend harvesting returns are made up by the capital you invested in the first place.
Are there other income focused ETFs?
Global X and Betashares have also introduced a range of income producing covered-call ETFs:
- Global X S&P/ASX 200 Covered Call ETF (AYLD)
- Global X Nasdaq 100 Covered Call ETF (QYLD)
- Global X S&P 500 Covered Call ETF (UYLD)
- BetaShares NASDAQ 100 Yield Maximiser Fund (Managed Fund) (QMAX)
- BetaShares S&P 500 Yield Maximiser Fund (Managed Fund) (UMAX)
A covered call ETF holds a portfolio of shares while simultaneously selling call options (a complex financial derivative). It aims to generate regular income through options premium, however it forfeits the upside and underperforms in strong rising markets.
The option premiums can contribute to distributions, but selling call options can limit participation in gains above the option strike price. Covered-call strategies may therefore lag the underlying market during strong rallies and still carry downside risk.
Vanguard Australian Shares High Yield ETF (VHY) provides exposure to Australian shares selected for higher forecast dividend yields. We believe VHY can help boost investors dividend returns without giving away the potential for capital returns.
VHY is available as a Stockspot Theme choice for our clients and is included in the Stockspot Topaz Income portfolio. WDIV, provides global dividend exposure and is included in Stockspot’s High Dividend Theme bundle.
Picking the best ETFs doesn’t need to be difficult or time consuming. Let Stockspot build you a smart, personalised ETF portfolio using proven investment strategies to grow your wealth.
