The Vanguard Australian Shares Index ETF (ASX: VAS) doesn't hold the mantle of the most popular exchange-traded fund (ETF) on the ASX for nothing.
There's little doubt that this ETF's unique structure in being the only fund to track the S&P/ASX 300 Index (ASX: XKO) rather than the more popular S&P/ASX 200 Index (ASX: XJO), plays a role here. As does the brand reputation of (the famously not-for-profit) Vanguard.
But dividend distributions surely play a role here too.
After all, the ASX share market has a well-earned reputation as a bountiful source of dividend income. Thus, an index fund that tracks ASX shares will, by definition, reflect this. Just consider the VAS ETF's top holdings.
Big four banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) dominate VAS' weighting, as does the dividend machine that is BHP Group Ltd (ASX: BHP).
But let's take a deeper dive and look at the numbers.
Five years of VAS dividend distributions
So VAS pays out dividend distributions every quarter. Here's a summary of those payments over the past five years:
| Date (quarter ending) | VAS Distribution (cents per unit) |
| 30 June 2022 | 215.95 |
| 31 March 2022 | 199.59 |
| 31 December 2021 | 69.65 |
| 30 September 2021 | 140.73 |
| 30 June 2021 | 55.64 |
| 31 March 2021 | 77 |
| 31 December 2020 | 43.42 |
| 30 September 2020 | 56.84 |
| 30 June 2020 | 20.6 |
| 31 March 2020 | 67.27 |
| 31 December 2019 | 72.14 |
| 30 September 2019 | 107.1 |
| 30 June 2019 | 82.14 |
| 31 March 2019 | 91.59 |
| 31 December 2018 | 71.06 |
| 30 September 2018 | 112.74 |
| 30 June 2018 | 101.73 |
| 31 March 2018 | 66.53 |
| 31 December 2017 | 68.1 |
| 30 September 2017 | 100.88 |
If any reader would like a more concise version of this data, here it is:
- For the 12 months ending 30 June 2022, VAS paid out $6.26 in distributions per unit.
- For the 12 months to 30 June 2021, it was $2.33 per unit.
- The 12 months to June 30 2020 saw a total of $2.67 per unit.
- For the 12 months to 30 June 2019, it was a sum of $3.58 per unit.
- The 12 months to 30 June 2018 had VAS pay out $3.37 in distributions per unit.
Why so bumpy?
So what is immediately obvious is the massive dividend distribution haul investors have enjoyed over the past 12 months compared to prior years. This probably comes down to a couple of factors.
Firstly, the past 12 months have seen many ASX shares, especially the big four banks, raise their dividends to well above what was being paid out during the worst months and years of the pandemic.
Secondly, since ending its London dual-listing earlier this year and rehoming to the ASX in full, BHP now enjoys a far greater weighting in the ASX 300 Index than it used to.
As such, index ETFs like VAS now hold far more BHP shares, which is currently one of the most generous dividend-paying shares on the market, as a proportion of its overall portfolio today.
So that's a summary of VAS's dividend distribution history over the past five years. The most recent four distributions give this ETF a trailing yield of 7.07%.
