"We view [the ETF] as a sound offering and a welcome addition to the ETF market," S&P fund services analyst Rodney Lay said.
"This is a cost and tax-efficient vehicle based on a clear and transparent portfolio-construction methodology.
"However, we do believe that the sector concentration and consequent volatility risk is somewhat inconsistent with the needs of the target market, specifically a relatively stable and predictable level of income."
The fund began trading on the Australian Securities Exchange on 29 September.
It aims to closely track the returns of the MSCI Australia Select High Dividend Yield Index. The benchmark is a rules-based customised index of Australian securities that seeks to achieve a dividend yield higher than the broader Australian equities market.
