Dividend ETFs on the ASX for Broader Market Exposure

For investors who want steady passive income, these three dividend focused ETFs offer an easy and smart way to capture consistent cash flow.

The Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

gives investors access to 50 of Australia’s top dividend paying companies from the S&P/ASX 200 index.
It has a low expense ratio of 0.24% per annum. ZYAU follows the S&P/ASX 200 High Dividend Index which picks companies based on their 12 month forward dividend forecast and leaves out REITs and stocks with weak momentum.

In the one year to October 2025, it gave a return of around 8.51% helped by solid dividends from banks, energy and material companies.

It pays income every quarter and has a 12 month yield of about 4.16% as of late August. The fund owns well known names like Commonwealth Bank, Westpac, NAB, BHP, Rio Tinto and Woodside Energy covering a big part of Australia’s economy.

For income driven investors ZYAU stands as a steady and low cost option that gives regular payouts and access to some of the strongest blue chip firms in Australia.

The Vanguard Australian Shares High Yield ETF (ASX: VHY)

gives investors wide exposure to Aussie companies that pay higher than average dividends, so it is often liked by people who want steady income from their portfolio.

It has an expense ratio of 0.25% per annum and follows the FTSE Australia High Dividend Yield Index before fees and expenses. The index mainly includes around 75 big ASX listed companies that are expected to keep paying stable dividends.

It doesn’t include A-REITs so that it stays focused more on industrial and financial stocks. As of 30 September, VHY pays income every quarter and gives around 5.6% gross yield.

Its portfolio is spread across major sectors like financials, basic materials and energy. The top stocks in it are BHP, Commonwealth Bank, NAB, Westpac and Telstra.

The iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)

gives access to 50 of Australia’s top dividend paying companies that also meet ESG standards. 

It has an expense ratio of 0.23% per year and follows the S&P/ASX Sustainability Screened Dividend Opportunities Index. This index mainly includes profitable and actively traded ASX stocks that give strong dividend yields, while removing any companies involved in serious ESG issues.

The ETF gave a 1 year return of 11.84% as of October 2025 .IHD pays income every quarter and its 12 month trailing yield is around 4.29% as of late September which makes it good for investors who want regular income with responsible investing. Its main holdings are Westpac, NAB, ANZ, BHP and Rio Tinto which gives it strong exposure to Australia’s banking and mining space. 

The fund keeps its ESG focus by using sustainability filters, IHD gives a nice mix of income, diversification and responsibility. It’s a simple way to invest in high yield Australian stocks without giving up on sustainability values.

(Source: Company Reports)