Hello all I've been doing some reading up on the Vanguard high yield australian shares fund on their website. The one interesting trend i see on the fact file is that the fund tends to have an average result of -2% over the last 5-7 years against the benchmark (ie ASX 200 ex-REIT). And this result assume reinvestment of yields. So my little brain is telling me that essentially investors are paying an extra 0.2% MER (over a classic index fund) and historically give up 2% in yield/growth for: (1) getting yield paid out (almost) monthly (2) having (hopefully) extra 1% in gross yield The above makes me scratch my head a bit - not sure if its worth doing it simply for those reasons; 2% in yield/growth is a lot to give up (for me). hmmm.. maybe another reason to use the fund is the expectation that it will outperform the benchmark during the next 12 months ? (ie during a bust phase) What do you think? Is this fund a growth fund or an income fund? Or is it trying to be a hybrid growth/income? With the 2% deviation from benchmark, is it suceeding? Would to hear your thoughts and reasons... Happy Easter everyone!!