High-Yield Dividend ETFs
for the ASX in 2026

Here’s an analysis of eight high-yield dividend ETFs available on the Australian Securities Exchange (ASX) in 2026:

What Is a Dividend ETF?

Dividend ETFs offer a convenient way to access multiple dividend-paying stocks in one go. These dividend ETFs are known as ‘high yield’ or ‘income’ ETFs. All ETFs that include holdings of companies that pay dividends will deliver dividends to investors. Some ETFs focus on an investment strategy prioritising stocks likely to pay reliable dividends to shareholders.

What makes a good dividend ETF?

When assessing dividend ETFs, investors typically consider:

  • Distribution yield (but avoid yield traps)
  • Consistency of payments
  • Franking credits
  • Management cost (MER)
  • Diversification
  • Liquidity and size

 

The ETFs below are commonly used by advisers and long-term investors seeking reliable income.

Top Dividend ETFs for 2026

Vanguard Australian Shares High Yield ETF (VHY.ASX)

  • Indicative yield: ~5–6%
  • Fee: 0.25%
  • Distributions: Quarterly

 

VHY is one of Australia’s most widely held dividend ETFs. It focuses on high-yielding blue-chip companies and includes exposure to banks, resources and industrials. It’s often used as a core income holding.

Best for: Long-term income investors seeking stability and franking credits.

iShares S&P/ASX Dividend Opportunities ETF (IHD.ASX)

  • Indicative yield: ~6–7%
  • Fee: 0.30%
  • Distributions: Quarterly

 

IHD typically offers one of the higher yields among Australian dividend ETFs. It tilts toward sectors like financials and energy, which can produce stronger income but slightly more volatility.

Best for: Investors prioritising higher yield.

SPDR MSCI Australia Select High Dividend ETF (SYI.ASX)

  • Indicative yield: ~5–6%
  • Fee: ~0.35%
  • Distributions: Quarterly

 

SYI provides diversified exposure to high-dividend Australian companies and has been widely used in adviser portfolios for many years.

Best for: Diversified dividend exposure.

Russell Australian High Dividend ETF (RDV.ASX)

  • Indicative yield: ~5–6%
  • Fee: ~0.34%
  • Distributions: Quarterly

RDV focuses on companies with sustainable dividend characteristics rather than simply the highest yield, helping reduce dividend-cut risk.

Best for: Quality dividend investing.

Monthly income ETFs

These ETFs are designed to pay investors cash distributions every month rather than quarterly or semi-annually. They typically generate this income using strategies such as holding high-dividend shares, rotating into stocks around dividend payment dates, investing in bonds or credit securities, or using options (like covered-call strategies) to create additional income from a portfolio of shares.

Because they focus on regular cash flow, monthly income ETFs are often popular with retirees and income-focused investors who want predictable payments. However, the higher yields can come with trade-offs — including lower capital growth potential, more active management, and sometimes higher fees — so they’re generally used as an income layer within a diversified portfolio rather than as a sole long-term growth investment.

BetaShares Australian Dividend Harvester (HVST.ASX)

  • Indicative yield: ~6–8% (variable)
  • Distributions: Monthly
  • Fee: ~0.99%

 

HVST actively rotates into stocks approaching dividend dates to generate income and franking credits.

Best for: Investors seeking regular monthly income (often retirees).

Global X S&P 500 Covered Call ETF (YMAX.ASX)

  • Indicative yield: ~7–9%
  • Distributions: Monthly
  • Fee: ~0.59%

YMAX uses a covered-call strategy on US shares to generate higher income. This can reduce capital growth but increase yield.

Best for: Investors seeking higher income from global markets.

Global dividend diversification ETFs

They invest in dividend-paying companies across multiple countries and regions, rather than focusing only on Australian shares. By holding businesses from the US, Europe, Asia and other developed markets, these ETFs help spread income risk across different economies, industries and currencies. This can make dividend streams more resilient, as they’re less reliant on the Australian market’s heavy exposure to banks and resources. Global dividend ETFs typically target companies with strong balance sheets and a history of consistent or growing dividends, providing investors with a mix of income and potential capital growth. They’re often used alongside Australian dividend ETFs to create a more balanced, globally diversified income portfolio that can smooth returns over time.

SPDR S&P Global Dividend ETF (WDIV.ASX)

  • Indicative yield: ~4–5%
  • Fee: ~0.50%

 

Provides exposure to dividend-paying companies globally, helping diversify income beyond Australia’s bank-heavy market.

Best for: International dividend diversification.

How to build a dividend ETF portfolio

Many investors combine multiple ETFs to balance yield and diversification:

Core Australian income

  • Vanguard Australian Shares High Yield ETF – (VHY.ASX)
  • iShares S&P/ASX Dividend Opportunities ETF – (IHD.ASX) or SPDR MSCI Australia Select High Dividend ETF – (SYI.ASX)


Higher income layer

  • BetaShares Australian Dividend Harvester – (HVST.ASX)  or Global X S&P 500 Covered Call ETF – (YMAX.ASX)


Global diversification

  • SPDR S&P Global Dividend ETF – (WDIV.ASX)

A diversified mix can help smooth income and reduce reliance on any single sector.

Investing for income — and impact

When you trade ETFs through Trade for Good, a portion of the brokerage can be donated to a partner charity chosen by you.

That means your investment activity can:

  • Generate income
  • Build long-term wealth
  • Support charities automatically

It’s a simple way to align investing with positive impact.

Key risks to consider

Dividend ETFs are not risk-free. Investors should understand:

  • Dividends can fall during market downturns
  • High yields may signal higher risk
  • Sector concentration (especially banks/resources in Australia)
  • Monthly income ETFs may use more complex strategies

Always consider your investment timeframe and objectives.

How they compare

ETF Yield Risk Stability Holding Type
VHY ⭐⭐⭐⭐ Low Very high Core + Global diversity
IHD ⭐⭐⭐⭐⭐ Medium High Core
SYI ⭐⭐⭐⭐ Low High Core
RDV ⭐⭐⭐⭐ Low High Core
HVST ⭐⭐⭐⭐⭐⭐ Higher Medium Income enhancer
YMAX ⭐⭐⭐⭐⭐ Medium Medium Income enhancer
WDIV ⭐⭐⭐⭐ Medium Medium Global diversity

The Bottom Line

When considering these ETFs, it’s essential to evaluate factors such as management fees, diversification, underlying holdings, and how they align with your investment objectives and risk tolerance.

Dividend ETFs remain one of the simplest ways to generate income from the sharemarket in 2026. For many Australian investors, they provide:

  • Regular income
  • Potential franking credits
  • Diversification
  • Lower cost than active funds

Combined with Trade for Good’s donation model, dividend investing can support both financial goals and meaningful giving.

Important disclaimer: These are examples only and not investment recommendations. Always conduct your own research and consider seeking professional financial advice.

What you learn here has been used in our Trade for Good software.
Click on the button to find our software education videos.

Software Videos

You can read more of our educational articles in the Trade for Good Learn section
Trade for Good Learn

Lightbox