Vanguard Australian Shares High Yield ETF

The Vanguard Australian Shares High Yield ETF (VHY) is an exchange-traded fund listed on the Australian Securities Exchange. It tracks the return of the FTSE Australia High Dividend Yield Index without the account fees, expenses, and tax.

Despite its active management strategy, VHY has a relatively low expense ratio of 0.25%. This ETF exposes traders to high-dividend companies listed on the ASX.

The fund has restrictions on its management strategy for diversification purposes, such as not investing more than 40% of its equity in one industry or more than 10% in a single company.

According to Vanguard, this ETF is best suited for traders and investors with a high-risk tolerance. If you fit this description, take note of these factors when you’re trading VHY:

• The monetary policy set by the Reserve Bank of Australia


• The difference between the forecast dividends and the actual dividends sent out


• Economic conditions of Australia and its major trading partners, namely China, the United States, and Japan


• Disruptions in the commodities market