Over the five years to 30 September 2026, VHY returned +10.2% a year, SYI +9.5% and IHD +8.8%, all well ahead of the plain ASX 200. ZYAU, YMAX and HVST trailed it. The funds share only about half their holdings, so picking one is a real choice. Low-fee index funds with broad holdings have done best, while the option-based and active funds have cost more and returned less.
One goal, many recipes
Australian dividend ETFs all aim to hold companies that pay high, mostly franked dividends. But each follows a different index rule: how yield is measured, how many companies are held, how much any one company can be, and what gets screened out. Those rules lead to very different portfolios.
That matters because investors often treat these funds as interchangeable. They are not. VHY and SYI, the two largest index funds in the group, share only half their holdings.
The scoreboard
| ETF | Fee | Size | Holdings | 1 year | 3 years (a year) | 5 years (a year) |
|---|---|---|---|---|---|---|
| VHY Vanguard | 0.25% | $8,193m | 90 | +12.0% | +13.5% | +10.2% |
| SYI State Street | 0.20% | $739m | 56 | +14.8% | +13.6% | +9.5% |
| IHD iShares | 0.23% | $407m | 51 | +8.8% | +13.5% | +8.8% |
| RDV Russell | 0.34% | $342m | n/a | +1.9% | +11.7% | +7.0% |
| ZYAU Global X | 0.24% | $100m | 50 | +10.7% | +12.4% | +4.8% |
| YMAX Betashares | 0.76% | $696m | 20 | +1.8% | +7.2% | +5.6% |
| HVST Betashares | 0.72% | $278m | 63 | +0.0% | +8.9% | +4.5% |
| A200 (plain ASX 200) | 0.04% | $11,082m | 200 | +2.9% | +11.0% | +6.9% |
Total returns including distributions to 30 September 2026. Holdings from issuer files, September to November 2026. Source: TMX Australia monthly funds report.
Each fund minus A200, in percentage points
The index-based dividend funds beat the plain market over three years, and the best of them by a wide margin over five. The two option-based funds, YMAX and HVST, trailed on both measures.
VHY vs SYI: the big two
These are the two largest index-based dividend ETFs, listed in 2011 and 2010, and they are the pair most often compared.
- VHY is broader, with 90 companies, and its holdings look most like the overall market. It holds BHP and Commonwealth Bank near the top, and is 68% the same as A200.
- SYI is more concentrated, with 56 companies, and is only 34% the same as A200. Its largest holding is CSL at 13%, followed by ANZ, NAB and Westpac. Commonwealth Bank is not among its top holdings.
- Results: VHY led over five years (+62.4% vs +57.1% cumulative). SYI led over the past year (+14.8% vs +12.0%) and is slightly cheaper.
Both are low-cost and have done their job. The choice comes down to whether you prefer the broader, more market-like fund or the more selective one. See the full VHY vs SYI comparison.
What is inside each fund
| ETF | Top five holdings |
|---|---|
| VHY | BHP 9.7%, Commonwealth Bank 9.1%, NAB 6.4%, Westpac 6.3%, ANZ 6.1% |
| SYI | CSL 13.0%, ANZ 10.2%, NAB 9.9%, Westpac 8.9%, Telstra 7.4% |
| IHD | ANZ 10.8%, NAB 10.0%, BHP 9.7%, Westpac 9.6%, Rio Tinto 9.1% |
| ZYAU | ANZ 11.2%, NAB 10.4%, Westpac 9.9%, Woodside 8.6%, Rio Tinto 6.7% |
| YMAX | BHP 17.1%, Commonwealth Bank 16.2%, NAB 7.6%, Westpac 7.4%, ANZ 7.2% |
Issuer holdings, 30 September to 2 November 2026.
Banks dominate every dividend fund
All four index funds hold more in financials than the market does. The real differences are in the rest: SYI has very little in miners and more in healthcare, IHD leans heavily on miners and Transurban, and ZYAU has a large slice of energy companies such as Woodside and Santos.
How much do they overlap?
How much of each pair is the same
Two practical points come out of this. First, owning VHY alongside VAS or A200 doubles up a lot: VHY is about two thirds the same as the broad market. Second, two dividend funds together, such as VHY and SYI, do give genuine variety, since they share only half their holdings.
Why YMAX and HVST fell behind
These two use options and active trading to boost distributions, and charge about three times the fee of the index funds. In rising markets, selling options gives away upside. Over five years, YMAX returned +31.1% and HVST +24.9% against +62.4% for VHY. Their distributions have been high, but much of that was growth handed back. We look at this in detail in covered call ETFs exposed.
What $10,000 grew to
The newer funds
- HYLD (Betashares, 0.25%) listed in August 2025 and returned +11.2% in its first year. See VHY vs HYLD.
- DIVI (Ausbil, active, 0.85%) has grown to $620 million since listing in 2025 and returned +7.0% over the year. See SYI vs DIVI.
Neither has a long enough record to judge yet.
Franking: the common strength
All of these funds hold Australian companies, so they pass on franking credits, which can be worth a lot to retirees and to SMSFs in pension phase. Franking levels differ between funds and from year to year, depending on holdings, so check each fund's recent distribution history. For how franking credits work, see ETF tax and franking credits.
Which suits whom?
- VHY suits investors who want the largest, broadest dividend fund that stays close to the market.
- SYI suits those who want the lowest fee and a more selective, less market-like portfolio.
- IHD suits investors comfortable with a heavier tilt to miners and banks.
- YMAX and HVST suit only investors who put the size of each payment ahead of total return and accept higher fees.
More comparisons: VHY vs IHD, SYI vs IHD, VHY vs ZYAU, VAS vs VHY, or the full ranking of every dividend ETF.
Common questions
Is VHY or SYI better?
VHY returned more over five years (+10.2% a year vs +9.5%), while SYI led over the past year and charges slightly less (0.20% vs 0.25%). They share only about half their holdings, so they are genuinely different funds.
What is the best Australian dividend ETF?
Over the five years to 30 September 2026, VHY returned the most of the Australian dividend ETFs, at +10.2% a year. SYI and IHD were close behind. Past returns do not guarantee future ones.
Should I hold VHY and VAS together?
They overlap by about 65%, so holding both adds less variety than it seems. Some investors do it to tilt towards income, but it is worth checking the overlap first.
Do Australian dividend ETFs pay franking credits?
Yes. Because they hold Australian companies, they pass on franking credits, though the level varies by fund and by year.
Joshua Stega is a financial adviser with 20 years' experience and the founder of ETF Adviser. He built ReviewETF to make every Australian ETF easy to find and compare.
General information only. It does not take into account your objectives, financial situation or needs. Consider the PDS and TMD before investing. Past performance is not a reliable indicator of future performance. Data as at 30 September 2026.