Betashares has launched the S&P Australian Shares High Yield ETF (ASX: HYLD), further building out its equity income product suite with diversified exposure to 50 Australian shares selected for their high forecast dividend yields.
The new exchange-traded fund (ETF) aims to deliver higher income than the broad Australian sharemarket while screening out potential dividend traps that often hinder traditional high-dividend strategies.
HYLD provides monthly distributions and is positioned as a core Australian equity allocation that could outperform the S&P/ASX 200 Index.
Alongside the launch of HYLD, Betashares has revised the investment strategy and reduced the management fee for its global equity income ETF, now known as the Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM).
This fund offers exposure to between 100 and 200 global companies that have consistently increased or maintained dividends for at least 10 consecutive years while also applying sustainability screens, with income being paid quarterly.
According to Betashares, Australia remains one of the highest-yielding equity markets in the world, while dividends with franking credits continue to be a crucial source of tax-effective income for local investors.
However, income-focused investors, retirees in particular, have faced declining yields as traditional income sources have continued to dry up over recent years.
Both the ASX dividend yield and the RBA cash rate have concurrently fallen below 4 per cent, outside of the COVID-19 period, for the first time in 50 years. Betashares has flagged this as a concern for self-funded retirees who have long relied on dividends and term deposits to meet income needs.
In response to this environment, investors are increasingly looking to boost allocations to higher-dividend companies (particularly in Australia), given the franking credit benefits.
Betashares noted, however, that stock selection based solely on historical yields can carry risks, as seen with examples like Star Entertainment Group and Lendlease, underscoring the value of avoiding dividend traps.
Commenting on the expansion, Betashares chief executive officer Alex Vynokur said: “Australian investors are well known for their affinity for dividends. Both HYLD and INCM can be used as core equity allocations that can boost income, while also implementing dividend sustainability related screens.
“Right now, the ASX dividend yield and RBA cash rate are both below 4 per cent. Outside of the COVID dip, these are market conditions we have not seen at any other time in the last 50 years.
“This has serious implications for investors, particularly retirees, who rely on cash and shares for income. As a result, we’re expanding our range of intelligent investment exposures to help Australian investors generate more income,” Vynokur said.
HYLD is now trading on the ASX and the changes to INCM took effect at the close of trading on Tuesday, 5 August 2025.
