Is RDV a good ETF?
RDV is the Russell Investments High Dividend Australian Shares ETF. We classify it under AU, Thematic, and Dividend. With about $346 million in assets it is a solidly established fund.
On a total-return basis, RDV has delivered 7.6% a year over 10 years (ranked 66th of 108 ETFs we track), 8.81% a year over 5 years (ranked 71st of 188 ETFs we track), 11.64% a year over 3 years (ranked 97th of 226 ETFs we track), and 8.35% a year over 1 year (ranked 144th of 308 ETFs we track).
The management fee of 0.34% is reasonable. That's cheaper than the typical 0.4% for similar ETFs. If cost is your priority, SYI (0.2%), IHD (0.22%), and ZYAU (0.24%) cover similar ground for less. It pays a healthy 3.95% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 90% franking softens the blow for Australian residents.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 14.54%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.43 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Low-cost: a 0.34% management fee keeps more of the return in your pocket.
- Pays a useful 3.95% income yield.
Things to watch
- Cheaper alternatives exist: SYI, IHD, and ZYAU.
- Weak risk-adjusted returns (10-year Sharpe ratio 0.43).
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 90% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What RDV's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
Targets higher-yielding, cash-generative companies. Popular with retirees and income investors, and in Australia often comes with valuable franking credits.
- Market regime
- Tilts toward 'value' sectors such as banks, resources and utilities. Can lag in growth-led bull markets and concentrate risk, but tends to be more defensive when markets fall.
- In a portfolio
- Good for investors who want income now. Note the higher distributions are taxable each year, which is less efficient for those in higher brackets and in the accumulation phase.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.