On the hunt for top ETFs in May 2022? Time to try SYI & VSO?

Now could be an opportune time to run the rule over the SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) and Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). Using our internal quantitative analysis, these ETFs appear to offer strong exposure to the Australian shares sector.

Getting to know the VSO and SYI ETFs

The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.

The Vanguard VSO ETF provides exposure to a diversified portfolio of Australian small caps and tracks the MSCI Australian Shares Small Cap Index. This is a low-cost way to access the performance of Australian small-cap shares through a single fund.

Note: you can continue learning about the VSO ETF on our report page. ASX VSO report.

a gif of 4 etf reports

To make this article easier to digest, we’ll just study the fees or ‘management expense ratio’ (MER). Using data for December 2021, the SYI ETF has an MER of 0.35% while the VSO ETF had a yearly fee of 0.30%. So, VSO wins on this metric. Keep in mind, a more insightful metric to know is the fee quartiles that these ETFs find themselves in (note: quartile 1 is best). Meaning, we take all the Australian shares ETFs in our database and put them into 4 quartiles, based on their fees. For example, any ETF which has a fee below 0.3% would be considered in our first (best) quartile.

Track record

Let’s look at the past results. Keep in mind, performance isn’t everything — and past performance is not indicative of future performance. It’s just one part of a much bigger picture. The reason we say performance is not everything is because of volatility of financial markets and the economy from one year to the next. Some ETFs and funds can put in a strong return one year just to generate weak returns the next time around. That’s why we prefer three-year or seven-year track records over one-year track records. It can smooth out the temporary performances caused by external factors. Both ETFs have achieved our three-year performance hurdle. As of December 2021, the SYI ETF had an average annual return of 13.08%. During the same time, the VSO ETF returned 20.08%.

Best ETFs Takeaway

To keep reading about these two ETFs, be sure to visit our free SYI ETF report or VSO ETF review.

In summary, the VSO ETF ranks better against our internal scoring methodology and by quite some distance against SYI.

Please, keep in mind, there is much more to choosing a good ETF. That’s why you should now use these skills to find the best ETF you can. If you want the name of our team’s top ETF pick for 2022, keep reading…

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

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