How to Find the Best High-Yield ETFs

Luciano Siracusano, director of research at WisdomTree Investments, acknowledges the importance of expense ratios and yields, but advises investors to keep their eyes on the big picture.

"Cost is always important," he says. "But then, you need to look at yields as well as total returns. Total returns among funds can vary widely."

The WisdomTree Total Dividend Fund(DTD Quote - Cramer on DTD - Stock Picks) was launched in June, 2006 and has a yield of 3.25%. It tracks the WisdomTree Dividend Index with financials accounting for approximately a third of the fund's total weight.

General Electric(GE Quote - Cramer on GE - Stock Picks), Exxon Mobil(XOM Quote - Cramer on XOM - Stock Picks), Johnson & Johnson(JNJ Quote - Cramer on JNJ - Stock Picks) and Wal-Mart Stores(WMT Quote - Cramer on WMT - Stock Picks) are among the Total Dividend Fund's top holdings. The fund presently trades about 10% below its year-ago levels.

In addition to high-yield U.S. ETFs, investors might find it to be worth their while to consider ETFs that have an international focus.

Krause finds the WisdomTree Emerging Markets High-Yielding Equity Fund(DEM Quote - Cramer on DEM - Stock Picks) to be particularly attractive right now.

"Emerging markets have gotten quite expensive in recent months," he says. "This fund is an excellent way to get defensive and still maintain international exposure."

The Emerging Markets High-Yielding Fund was launched in July, and has Petroleo Brasileiro(PBR Quote - Cramer on PBR - Stock Picks), Taiwan Semiconductor Manufacturing Company(TSM Quote - Cramer on TSM - Stock Picks) and PetroChina(PTR Quote - Cramer on PTR - Stock Picks) among its top names. The fund tracks an index that has a dividend yield of 5.8%, and currently trades about 9% above its price from around the time of its inception last summer.

Although it does not focus specifically on emerging markets like the WisdomTree fund, the PowerShares International Dividend Achievers Fund(PID Quote - Cramer on PID - Stock Picks) has a good deal of exposure to Western Europe and Canada. The fund yields 3.0% and has top holdings such as Tomkins(TKS Quote - Cramer on TKS - Stock Picks), Barclays(BCS Quote - Cramer on BCS - Stock Picks) and HSBC Holdings(HBC Quote - Cramer on HBC - Stock Picks).

« Previous Page

1 2 3

Next Page »