A look at five funds with impressive dividend yields

Highlights 

  • Dividend yield funds primarily invest in securities that offer regular dividends.
  • A significant portion of the total corpus is spent based on both high dividends and high dividend yields.
  • BetaShares Crude Oil Index ETF, iShares S&P 500 AUD Hedged ETF, and iShares Global 100 AUD Hedged ETF are a few ETFs that offered an annual dividend yield of over 15%.

A dividend yield fund is one that mainly invests in securities offering regular dividends. Such funds (mutual or managed funds) are equity funds investing in equity or equity-related products.

Dividend yield funds invest a significant portion of their corpus in stocks that offer high dividends and high dividend yield.

This article will take you through five high dividend yield funds listed on the ASX.

INTERESTING READ:

BetaShares Crude Oil Index ETF-Currency Hedged (Synthetic) (ASX:OOO)

BetaShares Crude Oil Index ETF-Currency Hedged (Synthetic) tracks the performance of an index (before fees and expenses) providing exposure to crude oil futures, hedged for currency movements in the AUD/USD exchange rate.

OOO provided a final dividend of AU$0.3837 on 16 July 2021. The ETF has an annual dividend yield of 23.87%.

The fund provides access to the price of oil futures and also helps diversify the portfolio.             

iShares S&P 500 AUD Hedged ETF (ASX:IHVV)

iShares S&P 500 AUD Hedged ETF intends to offer investors returns that match those of the S&P 500 Hedged AUD Index (before expenses and fees).

The fund provided a final dividend of AU$91.98 on 13 July 2021 and has an annual dividend yield of 20.89%. IHVV was admitted on 18 December 2014 on ASX.

The fund invests in stocks listed in the US and Canada, with securities accounting for 75% of the portfolio. There are 513 companies within this fund.         

iShares Global 100 AUD Hedged ETF (ASX:IHOO)

iShares Global 100 AUD Hedged ETF seeks to provide investors with the performance of the market, before fees and expenses, as represented by an index comprised of 100 large capitalisation global equities. The fund invests in companies listed on the global equities markets. In addition, IHOO seeks to safeguard against the effect of foreign currency movements by being predominately hedged for foreign exchange risk as a neutral stance.

The fund provided a final dividend of AU$24.05 on 13 July 2021 and has an annual dividend yield of 17.51%. Since 2015, the fund has constantly provided dividends.

The fund has 142 companies and has a turnover ratio of 29.60%.

Vanguard International Credit Securities Index (Hedged) ETF (ASX:VCF)

Vanguard International Credit Securities Index (Hedged) ETF aims to track the return of the Bloomberg Barclays Global Aggregate Corporate and Government-Related Scaled Index hedged into Australian dollars before considering fees, expenses, etc. The ETF invests in a diversified portfolio of securities, thus less impacted by the performance fluctuations of individual securities.

The fund provided a final dividend of AU$0.53 on 16 July 2021 and has an annual dividend of 13.76%. Since 2017, the fund has constantly provided dividends.

Vanguard International Fixed Interest (Hedged) ETF (ASX:VIF)

Vanguard International Fixed Interest (Hedged) ETF aims to track the return of the Bloomberg Barclays Global Treasury Scaled Index hedged into Australian dollars before considering fees, expenses, and taxes. The ETF offers low-cost exposure to high-quality, income-generating securities issued by governments worldwide. It invests in fixed income securities that range in credit quality from BBB- to AAA as per S&P or equivalent ratings agency.

The fund provides investors with an effective manner to obtain long-term market performance.

Since 2017, the fund has constantly provided dividends. In 2021, the fund provided a final dividend of AU 18.79 cents per unit. It has an annual dividend yield of 12.38%.

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