This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 ETFs With Attractive Yields

iShares iBoxx $ High Yield Corporate Bond Index Fund (HYG)

High-yield corporate debt is a popular destination for risk-tolerant investors seeking steady income. Designed to target this corner of the bond market, HYG sets aside exposure to the sub-investment grade rated debt of a vast array of companies. The fund's portfolio lists nearly 500 individual holdings.

Although the threat of a bond default looms over HYG, I do not foresee such an event occurring on a large scale in the near future. By keeping exposure small and focused, investors can safely benefit from the fund's nearly 8% yield.

iShares S&P U.S. Preferred Stock Index Fund (PFF)

There are only a handful of ETFs available for investors looking to target preferred stock and PFF stands out as the strongest option.

Whereas competing products like the PowerShares Financial Preferred Portfolio (PGF) is dedicated solely to the financial industry, PFF utilizes a slightly more diversified approach to tracking this asset class. The 15% of PFF's portfolio not focused on the financial industry is spread across companies from sectors including consumer discretionary, industrial, and utilities.

Ultimately, investors will need a strong appetite for financials in order to stomach any preferred share-focused ETF. However, the fund's 7% yield may make it worth the risk.

Guggenheim Canadian Energy Income ETF (ENY)

Income-focused investors looking to expand their reach beyond the borders of the U.S. may want to put the ENY on the radar. This unique fund is designed to target Canada's lucrative energy industry. According to this fund's Website, this is achieved by combining exposure to Canada's highest yielding energy producers and fastest-growing oil sands players.

Top holdings include Canadian Oil Sands, Suncor Energy (SU), Imperial Oil (IMO) and Meg Energy Corp.

Currently, ENY's yield is in excess of 2%.

Written by Don Dion in Williamstown, Mass.

Readers Also Like:




At the time of publication, Dion Money Management owned the iShares Dow Jones Select Dividend Index Fund.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
HYG $91.40 0.08%
DVY $78.95 -0.50%
AMJ $44.89 0.38%
ENY $11.84 0.17%
PFF $40.06 0.04%

Markets

DOW 18,134.66 +54.52 0.30%
S&P 500 2,121.30 +3.61 0.17%
NASDAQ 5,103.0280 +10.9430 0.21%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs