Is SYI a good ETF?
SYI is the State Street SPDR MSCI Australia Select High Dividend Yield ETF from State Street. It tracks the MSCI Australia Select High Dividend Yield Index. We classify it under AU, Dividend, and Factor. With about $705 million in assets it is a solidly established fund. Listed on the ASX since 2010-09-22 (about 16 years ago).
On a total-return basis, SYI has delivered 8.81% a year over 10 years (ranked 59th of 108 ETFs we track), 9.77% a year over 5 years (ranked 55th of 188 ETFs we track), 12.95% a year over 3 years (ranked 85th of 226 ETFs we track), and 14.99% a year over 1 year (ranked 82nd of 308 ETFs we track).
The management fee of 0.2% is reasonable. That's cheaper than the typical 0.35% for similar ETFs. If cost is your priority, IOZ (0.05%) and VAS (0.07%) cover similar ground for less. It pays a high 7.36% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. 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 85% franking softens the blow for Australian residents.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 13.8%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.53 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 25% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Low-cost: a 0.2% management fee keeps more of the return in your pocket.
- High 7.36% income yield — good for investors who want regular cash flow.
Things to watch
- Cheaper alternatives exist: IOZ and VAS.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
Good to know
- Distributions are 85% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What SYI'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.
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.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
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.