Dividends Lure Investors to Large-Cap ETFs

The most attractive play he sees in the dividend-focused ETF arena is the WisdomTree Emerging Markets High-Yielding Equity Fund (DEM Quote). "It has good country diversification, but more importantly, it has good sector diversification as well," Hougan said.

Another dividend-focused ETF that Hougan likes is the iShares iBoxx Investment Grade Corporate Bond Fund (LQD Quote). "Corporate bonds are paying attractive yields right now," he says of this ETF, which is yielding 6.2%.

Other high-yield ETFs that Hougan believes might interest investors with a penchant for risk include the SPDR Lehman High Yield Bond ETF (JNK Quote), the PowerShares Financial Preferred Fund (PFD Quote) and the SPDR Dow Jones Wilshire REIT ETF (RWR Quote). "The U.S. real estate market isn't good right now, but that has already been priced in," he said.