The BetaShares Australian Dividend Harvester Fund (HVST) presents great opportunities for investors looking to capitalize on high-yielding Australian shares amidst the volatile market.
If you are searching for great investment instruments that you can leverage to earn high returns, make a stable periodic income, and build wealth, the BetaShares Australian Dividend Harvester Fund (HVST) provides an interesting investment vehicle for investors looking for a way to diversify their portfolio, and earn regular dividends.
This article discusses everything you need to know about HVST, from its features to the management fees, net asset value, and how you can invest in the fund.
What is BetaShares Australian Dividend Harvester Fund?
The BetaShares Australian Dividend Harvester Fund (HVST) is an exchange-traded fund (ETF) listed on the Australian Securities Exchange (ASX). It’s structured to provide investors exposure to large-cap, high-yielding Australian shares along with franked income that exceeds the net income yield of the broad Australian share market on an annual basis.
Also, the fund is structured to reduce the volatility of the equity investment returns and protect investors against losses in declining markets.
Also Read How to Invest in the Stock Market as a Beginner in Australia
Features of the BetaShares Australian Dividend Harvester Fund
Here are some key features of the HVST you must consider as an investor:
High Yield
BetaShares Australian Dividend Harvester Fund (HVST) targets companies with established dividend payment histories. With that, it provides investors with a high level of periodic income through dividend payments.
Diversification
HVST ETF offers a diversified exposure to Australian equities. It contains stocks of large capitalization companies from various sectors in Australia. This reduces the risk of the portfolio and increases the chances of investors earning regular incomes from HVST.
Franking Credits
HVST aims to maximize the benefit of franking credits associated with Australian dividends. That means it aims to provide investors with a higher level of franking credits than what’s obtainable in the broad Australian share market.
Liquidity
Being an ETF listed on ASX, investors can easily buy and sell units of the fund on the stock exchange like individual stocks. This provides investors with a bit of liquidity and flexibility in managing their portfolios.
Dividend Reinvestment Plan (DRP)
HVST investors can take partial or full participation in the fund’s dividend reinvestment plan (DRP). This allows you to strengthen the potential of your portfolio and earn better returns in the long run.
How to Invest in BetaShares Australian Dividend Harvester Fund?
Here are the important steps you must take to invest in BetaShares Australian Dividend Harvester Fund:
Open a Brokerage Account
If you don’t already have one, the first thing you must do is open a brokerage account. Open an account with any financial institution or brokerage platform that allows you to trade on ASX.
An account with a good brokerage platform makes it easy for you to buy shares of top Australian companies and even that of some top foreign companies.
Research the ETF
Before committing your money, it’s essential to research the BetaShares Australian Dividend Harvester Fund. You can get vital and detailed information about the ETF on its product disclosure statement (PDS).
The PDS provides extensive information about the fund’s investment strategy, risks, fees, and performance.
With comprehensive research on the ETF, you’ll determine when and how to invest in it. You’ll also know how much funds to invest in it to yield the desired returns.
Also Read: Exchange-Traded Funds (ETFs) Features
Fund Your Account
Once you have full disclosure on the exchange-traded fund, credit your brokerage account with the amount you wish to invest. Many brokerage accounts offer multiple funding options, including bank transfers, debit cards, Google Pay, etc.
Choose the funding option you’re most convenient with and keep receipts in case of resolutions later with the payment processing system.
Place an Order
Once you’ve chosen a brokerage platform and done your research, you can place an order to buy units of the BetaShares Australian Dividend Harvester Fund.
You’ll need to use the fund’s ASX ticker symbol (HVST) to place your order. Specify the type of order you want, such as market order and limit order. Also, specify the quantity of units you want to buy before confirming the order.
Monitor Your Investment
Part of successful investing is monitoring your investment consistently to know when to take necessary actions.
After you’ve purchased the units of the fund you want, keep an eye on its performance, any distributions or dividends received, and any trends or events that might affect its performance.
Also, constantly review your investment goals and risk tolerance to ensure you’re on track at all times.
Consider a Dividend Reinvestment Plan
The BetaShares Australian Dividend Harvester Fund offers investors a DRP, allowing them to automatically reinvest dividends to gain additional units of the fund.
If it aligns with your investment strategy, you can choose to participate in the DRP. This is a good plan if you have no immediate needs for your dividends and are targeting more rewarding, long-term returns.
What are the Fees of the HVST ETF?
HVST ETF has a management fee and cost of 0.70% per annum. That means, if you invest $10,000 in the fund for a year, you would pay $70 in management fees and costs.
What’s the Net Value of HVST ETF?
The BetaShares Australian Dividend Harvester Fund (HVST) has a net asset value of $195.39 million. As of February 8, 2024, it has outstanding units of 15.4 million.
How Often Does BetaShares Australian Dividend Harvester Fund Pay Dividend?
BetaShares Australian Dividend Harvester Fund (HVST) pays monthly dividends to investors. It also offers a partial or full dividend reinvestment plan to enable investors to maximize the growth potential of their portfolio over the long term.
Conclusion
BetaShares Australian Dividend Harvester Fund is an interesting investment vehicle for investors looking for a way to diversify their portfolio, earn regular income, and benefit from capital appreciation in the long run.
But, as with any other investment, you must do due diligence by conducting thorough research before committing your funds.
Hopefully, this article has given you reasonable insights into what the BetaShares Australian Dividend Harvester Fund (HVST) is all about.
