For those thinking of a satellite value tilt, there doesn't seem to be an Australian version of, say, VVLU. But does VHY come close?
I assume you mean a fund focusing on Australian value securites as opposed to an international value fund listed on the asx? I doubt it (unless you find a managed fund that might). I suspect the asx is too small for an ETF to be able to offer anything worth while. Imo VHY is just a more concentrated version of VAS so I wouldnt consider it a value fund. Having held VHY in the past I would suggest just holding VAS instead.
Larry Swedroe recommends against using a dividend strategy as proxy for value. https://www.etf.com/sections/features/22243-swedroe-are-dividends-a-value-strategy-.html
It’s not the dividend strategy except in the sense that companies that pay good dividends tend to be companies that meet the Value metric. Otherwise you’d go for pure dividend plays like Plato or one the Betashares harvesters. It is more that the tilt VHY has towards future dividends coincides with sectors and companies Value tilts towards. As mentioned there doesn’t seem to be a Passive Value fund in Australia. Although there are many lagging active funds sticking their hands up. But if you use Dimensional’s semi-passive fund and VAS as baselines, VHY seems to straddle them. QOZ is another fund that has been mentioned here in the past in the hopes it would perform a similar function, but it hasn’t really.
i hold both VAS and VHY ( both bought in 2011 and both DRPed ) now at first glance VAS looks the better play but after you factor in the divs DRPed VHY grabs the lead probably because more VHY constituents pay divs more often , some top 300 stocks don't pay a div. for years i hold PL8 as well but bought later than VHY/VAS , HVST ( i hold and DRPed ) has been a disappointment but i will wait for a big market plunge before trying to average down SYI has been the surprise packet ( i hold and DRP ) it has been a lumpy payer partly caused by selecting some stocks that have been take-over targets , and has bounced sufficiently enough to trade ( reduce the holding when the market is high and add extras in the big dips i also hold IHD ( DRPed ) but VHY and SYI have done better for me so far the select div. strategy ( there are several rivals i do not hold ) is an intriguing niche you would think they would all be much the same but that is NOT the case
Divs aren't really the point of my question, but I also used to own PL8. I sold during a portfolio rejig and thought about re-buying. But I really can't see the value. PL8's only assets are those of the underlying Plato Australian Shares managed fund. They should, therefore, track each other. But they don't. For some reason people are paying a 15% premium for the listed version.
