Best ASX-Listed Investment Companies (LICs) Compared 2026

Listed investment companies (LICs) are Australia's original "one-trade, diversified portfolio" product — decades older than ETFs, and still holding a combined tens of billions of dollars for income-focused investors. Here's how the five largest broad-market LICs actually compare, on the numbers that matter: fees, discount to net tangible assets (NTA), and dividend yield.

Use the ETF Returns Calculator to compare LIC and ETF returns over your investment horizon.

Quick answer: Argo (ARG) and BKI currently offer the highest grossed-up dividend yields (5.9% and 6.1%) among the major LICs, while AFI has the lowest management fee gap versus ETFs (0.15% p.a.) and the largest scale (~$8 billion). All five trade at a discount to NTA — meaning you can currently buy their underlying portfolios for less than the portfolios are worth, though discounts can persist for years.

The major broad-market LICs compared

Figures below are sourced from each company's ASX NTA announcements and dividend history, dated individually as noted — LIC share prices, NTA and yields move daily. Verify current figures before investing.

LIC	Ticker	Management fee	Share price	Pre-tax NTA	Discount to NTA	Dividend yield (cash)
Australian Foundation Investment Co	AFI	0.15%	$6.89 (26 Jun 2026)	$7.88	12.6%	3.7%
Argo Investments	ARG	0.14%	$9.44 (7 Aug 2026)	$11.14	15.3%	4.1%
BKI Investment Company	BKI	0.10%	$1.855 (31 Aug 2026)	$2.07	10.4%	4.3%
Australian United Investment Co	AUI	~0.10%	$11.82 (11 Sep 2026)	$13.64	13.3%	3.4%
Whitefield Industrials	WHF	0.35%	$4.80 (May 2026)	$6.06	20.8%	~4.4%

All five pay fully franked dividends. Grossed-up (after-franking) yields are meaningfully higher than the cash figures above — see the franking section below for how to calculate your own.

What "discount to NTA" actually means

Unlike an ETF, a LIC is a closed-end company — it has a fixed number of shares on issue, and those shares trade on the ASX at whatever price buyers and sellers agree on. That price can and does diverge from the actual value of the underlying portfolio, which is published regularly as Net Tangible Assets (NTA) per share.

If a LIC's share price sits below its NTA, it's trading at a discount — you're buying $1 of underlying shares for less than $1. If the share price sits above NTA, it's trading at a premium.

Every LIC in the table above is currently trading at a discount, ranging from 10.4% (BKI) to 20.8% (Whitefield). This is common for broad-market LICs and can persist for years — a discount narrowing is a bonus if it happens, not something to bank on.

Management fees: LICs vs ETFs

Use the ETF Returns Calculator to see how a 0.10% vs 0.35% fee difference compounds over 10, 20 and 30 years.

The major LICs' fees (0.09%–0.15% for AFI, Argo, BKI and AUI) are broadly comparable to low-cost Australian shares ETFs like VAS or A200 (0.07%). Whitefield, at 0.35%, sits closer to an actively managed fund's fee level — worth weighing against its portfolio (Whitefield tracks a rules-based index of ASX top-200 industrials, so it isn't purely passive despite the LIC structure).

The fee gap matters less for LICs than the NTA discount does — a persistent 10–20% discount to NTA has a far bigger effect on your actual return than a 0.1–0.2 percentage point fee difference.

Dividend income and franking

All five LICs in this comparison pay fully franked dividends, meaning the 30% company tax already paid is attached as a franking credit you can offset against your own tax bill (or receive as a cash refund if your marginal rate is below 30%, including in an SMSF pension phase).

To estimate your grossed-up yield from the cash yield in the table above:

Grossed-up yield = Cash yield ÷ (1 − 0.30)

For example, AFI's 3.7% cash yield grosses up to approximately 5.3% before your personal tax offset. Argo's 4.1% cash yield grosses up to approximately 5.9% — matching Argo's own reported grossed-up figure.

Use the Income Tax Calculator to see what a grossed-up LIC dividend does to your total tax position, particularly useful if you're weighing LIC income inside an SMSF.

A note on income reserves

One structural advantage LICs have over ETFs: they can hold back some income in good years and use it to smooth dividends in leaner ones, because LICs aren't required to distribute all income each year the way a managed fund or ETF trust is. This is a key reason retirees and income-focused investors have historically favoured LICs — the dividend is typically more stable year to year than the underlying portfolio's earnings.

Which LIC should you consider?

For the largest, most established option: AFI — the biggest LIC by funds under management, with the lowest fee among the largest-scale options.

For the highest current grossed-up yield among these five: BKI (6.1%) and Argo (5.9%) — both fully franked, both with fee levels comparable to a low-cost ETF.

For the deepest current discount to NTA: Whitefield (20.8%) — though this comes with the highest fee of the group (0.35%) and a narrower, industrials-focused portfolio rather than the full ASX 200.

If you're choosing between a LIC and an ETF for core Australian shares exposure: an ETF like VAS or A200 gives you a price that tracks NTA continuously (no discount/premium risk) at a comparable or lower fee, but without a LIC's income-smoothing reserves. Neither is universally better — see ETF vs Managed Fund vs Index Fund in Australia for the structural comparison.

Frequently Asked Questions

Is a LIC the same as a managed fund?

A LIC (listed investment company) is a type of closed-end managed investment vehicle, but it's structurally different from an open-ended managed fund or ETF. A LIC has a fixed number of shares trading on the ASX at a price that can diverge from its underlying asset value (trading at a discount or premium to NTA). A managed fund or ETF continuously creates and redeems units at a price that tracks the underlying assets closely.

What is the best ASX-listed LIC for dividend income?

Among the largest broad-market LICs, BKI and Argo currently offer the highest grossed-up dividend yields (around 6.1% and 5.9% respectively), both fully franked. AFI offers the largest scale and longest track record at a slightly lower yield. Compare current figures before deciding, since discounts and yields move with the market.

Why do LICs trade at a discount to NTA?

There's no single cause — market sentiment, the size and liquidity of the LIC, dividend policy, and the perceived quality of the manager all play a role. Discounts can persist for years without narrowing, so buying at a discount isn't a guarantee of extra return; it's a feature of the closed-end structure, not a timing signal.

Are LIC dividends fully franked?

The five LICs compared here (AFI, Argo, BKI, AUI, Whitefield) all currently pay fully franked dividends, reflecting the 30% Australian company tax rate already paid on their earnings. Always check the specific franking percentage on each dividend announcement, as it can vary if a LIC has offshore income or accumulated tax losses.

How much does the management fee difference between LICs and ETFs actually matter?

Less than the NTA discount, in most cases. A 0.1–0.2 percentage point fee gap compounds to a meaningful amount over 20–30 years, but a LIC trading at a persistent 15–20% discount to NTA has a larger effect on your realised return than that fee gap — in either direction, depending on whether the discount narrows or widens over your holding period.

This article is for general information only and does not constitute financial, tax or legal advice. Share prices, NTA, discounts and dividend yields shown are point-in-time figures sourced from each company's ASX announcements on the dates noted, and change daily. Verify current figures directly with each company (AFI, Argo Investments, BKI, AUI, Whitefield) or via the ASX before making investment decisions.