Inside HYLD: How Betashares built a high yield ETF

Aug 18, 2025

Cameron Gleeson from BetaShares dives into the world of their newly launched HYLD ETF, designed to deliver high-yield investments. He explains how HYLD stands out by avoiding 'dividend traps' and uses momentum and volatility filters to enhance income stability. The discussion covers the ETF ecosystem, revealing its tax advantages and strategies for building a robust portfolio. Gleeson also shares insights on why HYLD pays monthly distributions and its comparison to both bonds and traditional dividend ETFs.

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INSIGHT

ETFs Offer Real Tax Efficiency

ETFs are tax-efficient pooled vehicles that avoid passing other investors' tax events to remaining holders.
Low turnover index ETFs further reduce capital gains tax drag for long-term investors.

INSIGHT

Index Providers Are Central To ETFs

Index providers publish transparent methodology documents that define how ETFs are constructed and rebalanced.
Daily index files allow ETF issuers and market makers to keep ETF holdings aligned with the index rules.

ADVICE

Prefer ETFs For Tighter Trading Spreads

Use ETF market makers to get tighter on-market buy/sell spreads instead of trading through wide unlisted fund bid-offers.
Prefer ETFs when you want efficient intraday execution and competitive pricing from multiple market makers.

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In this Australian Finance Podcast episode, Owen Rask chats with Cameron Gleeson from Betashares about their newly launched HYLD ETF – the Betashares S&P/ASX Australian Shares High Yield ETF.

They cover:

– How HYLD is built and what sets it apart from other dividend ETFs

– The ETF ecosystem: index providers, market makers, and transparency

– Why avoiding “dividend traps” matters for income investors

– How HYLD uses yield, volatility, and momentum filters to improve risk-adjusted income

– Monthly distributions and who the ETF might suit

If you like this episode on HYLD and dividend investing, you’ll love our other investing deep-dives. Subscribe for weekly shows on Apple, Spotify, YouTube, or wherever you get your podcasts!

Topics Covered

– ETF ecosystem explained: roles of index providers, ETF issuers, and market makers

– Why ETFs can be tax effective for high-income earners

– Construction rules for HYLD: consensus dividend estimates plus market-based signals

– Avoiding stale data and dividend traps (examples: AMP, Star Entertainment)

– Filters: yield >12%, worst momentum, and risk-adjusted yield exclusions

– HYLD’s current yield vs. the broad market

– Turnover and its impact on tax efficiency

– Why HYLD pays monthly distributions

– Core vs. satellite ETF use cases

– Comparing HYLD to bonds and other dividend ETFs

Resources for this episode

NEW: Betashares High Yield Shares ETF
Cam's article on dividend traps

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DISCLAIMER

This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs before acting on it.

If you’re unsure, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance.

The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG) – https://www.rask.com.au/fsg

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