High Yield ETFs - Income Mixed with Diversification
High Yield ETFs offer a beautiful mix of income and diversification while traditional income investments offer very few alternatives. With the Fed cutting interest rates to zero and Treasuries paying investors less than real inflation, there are actually many exchange traded funds that offer yields of 5% to upwards of 10% depending on the level of risk and sector that the investor is willing to accept.
While some investors choose to go it alone and select individual stocks for the income portion of their portfolio, the beauty of high yield ETFs is that they spread the individual company risk across several issues, often across sectors, and sometimes, even across countries. That then includes additional currency protection. As the US dollar continues to weaken against foreign currencies, when an exchange traded fund or closed end fund is holding foreign stocks, that currency provides a boost to returns in terms of US dollars.
Some of the funds profiled include those focused on Preferred Stocks, REal Estate, Energy and more.
You may also be interested in considering
High Yield Bond ETFs
High Yield Real Estate Investment Trusts (REITs)
High Yield Closed End Funds
High Yield Utility Stock ETFs
Return from High Yield ETFs to More on High Yield Passive Income