Are miners the new bank shares?

The ASX and the S&P/ASX 200 Index (ASX: XJO) have long held a reputation as very income friendly for investors. Whether it’s our unique system of franking, or just a healthy love of a good dividend paycheque, the ASX is well-known for prioritising income over growth.

As an example, an ASX-based index exchange-traded fund (ETF) like the Vanguard Australian Shares Index ETF (ASX: VAS) currently has a trailing dividend yield of 2.75% (plus franking). Compare that to an American-focused ETF like the iShares S&P 500 ETF (ASX: IVV). That only offers a trailing yield of 1.52% on current pricing.

Historically, the largest drivers of the ASX 200’s income prowess have been the ASX banks. Namely the big four in Commonwealth Bank of…