Question 1: I am looking at investing in an index fund. Between Vanguard’s VHY and the A200 from Betashares, which one do you think is the better investment for growth and dividends?
Answer (by Paul Rickard): Vanguard’s VHY (Vanguard Australian High Yield ETF) tracks the FTSE Australian High Dividend Yield index. This index comprises stocks that have higher forecast dividend yields relative to other ASX listed companies. There are 64 stocks.
The total return of the index in 2019 was 20.88%, underperforming compared to the S&P/ASX 200 accumulation index by 2.52% (this returned 23.4%). Accordingly, the ETF returned 20.83%.