Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in

These are the ETF’s major investments.

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Key points

  • The Vanguard Australian Shares High Yield ETF has been outperforming the broader market in 2022 
  • The ETF aims to invest in quality ASX dividend stocks, with the biggest ASX 200 companies making up some of its major holdings 
  • Let's take a look at the 15 ASX dividend stocks that each make up more than 1% of the ETF's portfolio 

The Vanguard Australian Shares High Yield ETF (ASX: VHY) has been outperforming the broader market in 2022.

It’s gained around 3.3% year to date while the S&P/ASX 200 Index (ASX: XJO) has slipped 3.5%.

The exchange-traded fund (ETF) aims to invest in high-quality dividend paying stocks, housing many of the ASX’s biggest names.

Right now, the ETF is trading at a share price of $68.29.

Currently, the $2.33 billion ETF is invested in 64 ASX shares. Let’s take a look at which stocks it’s holding.

Vanguard Australian Shares High Yield ETF‘s holding

The Vanguard Australian Shares High Yield ETF boasts an equity yield of 5.75% as of 31 March, with 40% of its holdings housed in one sector.

That is, the financial sector. The ASX 200’s ‘big four’ banks and Macquarie Group Ltd (ASX: MQG) make up 5 of the ETF’s top 10 holdings.

Though, its largest holding is in BHP Group Ltd (ASX: BHP). The mining giant’s stock makes up around 10.75% of the ETF’s holdings.

Its holding in Commonwealth Bank of Australia (ASX: CBA) only just trails that figure. It comes in at 10.3% of the ETF.

Its top 10 investments are rounded out by retail conglomerate, Wesfarmers Ltd (ASX: WES); telco, Telstra Corporation Ltd (ASX: TLS); miner, Rio Tinto Limited (ASX: RIO); and toll road operator, Transurban Group (ASX: TCL).

Another 3 ASX dividend shares each makeup more than 2% of the fund – they are iron ore producer, Fortescue Metals Group Limited (ASX: FMG); oil and gas icon, Woodside Petroleum Limited (ASX: WPL), and supermarket giant, Coles Group Ltd (ASX: COL).

Finally, 2 more stocks make up more than 1% of the fund – gas pipeline operator, APA Group (ASX: APA) and miner, South32 Ltd (ASX: S32).

Sadly, while the Vanguard Australian Shares High Yield ETF has gained more than 3% this year, its ‘sibling’, the Vanguard Australian Shares Index ETF (ASX: VAS), has slumped 4.25%.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended APA Group, COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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