Best Dividend ETF in Australia (2026)
Dividend ETFs focus on companies that pay higher income. In Australia that usually means banks, miners and Telstra, plus franking credits.
Of the 7 ETFs we compared, SYI has the lowest fee (0.20% a year) and VHY is the largest ($8.2bn). VHY had the best five-year return, +10.2% a year. YMAX paid the highest regular income, with a yield of 8.0%. Over 5 years, VHY tracked its index most closely after fees. The right one depends on your goals: read what to consider below.
Data to 30 September 2026 from the TMX Australia funds report. Returns include distributions. Yields are distributions over the past 12 months, adjusted down where they included one-off capital gains. General information only, not a recommendation.
All the options compared
Australian high-dividend ETFs
| Code | ETF | Fee | Size | Yield | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|---|
| VHY | Vanguard Australian Shares High Yield ETFLargestBest 5Y | 0.25% | $8.2bn | 3.5% | +12.0% | +10.2% | 0.02% |
| SYI | State Street SPDR MSCI Australia Select High Dividend Yield ETFLowest fee | 0.20% | $739m | 3.8% | +14.8% | +9.5% | 0.06% |
| IHD | iShares S&P/ASX Dividend Opportunities ESG Screened ETF | 0.23% | $407m | 4.2% | +8.8% | +8.8% | 0.11% |
| RDV | Russell Investments High Dividend Australian Shares ETF | 0.34% | $342m | 4.1% | +1.9% | +7.0% | 0.08% |
| ZYAU | Global X S&P/ASX 200 High Dividend ETF | 0.24% | $100m | 4.7% | +10.7% | +4.8% | 0.16% |
Higher income strategies
Use options or active management to boost income, at the cost of some growth.
| Code | ETF | Fee | Size | Yield | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|---|
| YMAX | Betashares Australian Top 20 Equities Yield Maximiser Complex ETFHighest income | 0.76% | $696m | 8.0% | +1.8% | +5.6% | 0.18% |
| HVST | Betashares Australian Dividend Harvester Active ETF | 0.72% | $278m | 5.7% | +0.0% | +4.5% | 0.12% |
Compare the biggest side by side → · Check how much they overlap →
Spread is the average gap between the buy and sell price: lower is cheaper to trade. 5Y a year is the average yearly total return over five years. Past performance is not a reliable indicator of future performance.
How closely each dividend ETF tracks its index
An index fund should return its index, less its fee. The gap below is each fund's return after fees minus its own benchmark. A gap close to zero means it has done its job well. Over 5 years, VHY tracked its index most closely, trailing it by only 0.27% a year.
| ETF and benchmark | Fee | 1Y gap | 3Y gap a year | 5Y gap a year | Verdict |
|---|---|---|---|---|---|
| VHYFTSE Australia High Dividend Yield Index | 0.25% | -0.28% | -0.26% | -0.27% | Tracking well |
| IHDS&P/ASX Sustainability Screened Dividend Opportunities Index | 0.23% | -0.27% | -0.29% | -0.35% | Tracking well |
| RDVRussell Australia High Dividend Index | 0.34% | -0.24% | -0.37% | -0.35% | Tracking well |
| SYIMSCI Australia Select High Dividend Yield Index | 0.20% | -0.49% | -0.37% | -0.43% | Lagging its index |
Gap = fund return after fees minus its benchmark. Issuer figures to September 2026. Hedged funds are measured against the hedged version of their index. Funds without published benchmark figures are left out. See every ETF vs its benchmark →
What to consider
- Yield vs total return. A high yield can come with lower growth. Look at the 5-year return as well as the income.
- Concentration. Check how much sits in the big four banks and BHP.
- Franking credits lift the after-tax income, especially for retirees and SMSFs.
- Covered call funds (YMAX) give up some upside in rising markets in exchange for more income.
