Vanguard VHY ETF (ASX:VHY)
The Vanguard VHY ETF provides exposure to the largest dividend-paying Australian shares, based on market capitalisation and forecast dividend yield. It tracks the FTSE Australian High Dividend Yield Index. The index excludes real estate investment trusts (REITs) and caps the total exposure to any sector/industry at 40%.
What does the VHY invest in?
The VHY ETF invests in a portfolio of ‘blue chip’ Australian companies with forecasted dividend growth. You could buy all of these companies yourself using a share brokerage account, but that would be a very expensive and time-consuming process.
What do investors use VHY for?
VHY could be used by ASX investors to get exposure to a mostly diversified portfolio of Australia’s largest public companies. These companies are likely to pay regular tax-effective dividends to their shareholders, including franking credits.
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