This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 High Yield ETFs to Buy


NEW YORK ( TheStreet Ratings) -- With the rate on 30-year mortgages down near 4.4% and 10-year Treasury note yields at eight-month lows on slowing economic growth in the United States, income-seeking investors may have sardonically lamented the debt ceiling increase and the rise in interest rates that never happened.

With interest rates scraping rock bottom, some 'buy'-rated exchange-traded funds offer compelling dividend income yields.

At a current dividend yield of 5.18% over the trailing 12 months, SPDR S&P International Telecommunications Sector ETF (IST) compares favorably to 12-month bank certificates of deposit offering yields of less than one half of one percent.

The fund pays out quarterly distributions of dividend income collected from the 58 telecom service sector companies it holds such as Vodafone Group (VOD), Telefonica SA (TEF), and France Telecom (FTE).

The SPDR S&P International Telecommunications Sector ETF seeks to provide investment results that, before fees and expenses, correspond generally to the S&P Developed Ex-U.S. BMI Telecommunication Services Sector Index, an index that tracks the telecommunications sector of developed global markets outside the United States. By following this index, this ETF attempts to maintain low portfolio turnover, accurate tracking, and lower costs. The fund reports an expense ratio of just 0.50%.

If monthly income is desired, check out the SPDR Nuveen Barclays Capital Build America Bond ETF (BABS) with a current dividend yield of 5.01% and an expense ratio of just 0.35%. The SPDR Nuveen Barclays Capital Build America Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital Build America Bond Index.

The index tracks the taxable municipal securities market of "Qualified Bonds" under the Build America Bond program created under the American Recovery and Reinvestment Act of 2009 or other taxable municipal securities on which the issuer receives federal support of the interest paid such as direct pay Build America Bonds.

An interesting choice for an ETF that pays annual dividends would be Market Vectors Junior Gold Miners ETF (GDXJ) offering a current dividend yield of 8.56% on an expense ratio of 0.54%. The fund targets small- and medium capitalization companies that generate at least 50% of their revenues from gold and silver mining or hold real property with the potential to produce at least 50% of the company's revenue from gold or silver mining when developed.

These include holdings of Allied Nevada Gold Corp (ANV), Silver Standard Resources (SSRI), Silvercorp Metals Inc (SVM), and MineFinders Corp (MFN).

-- Reported by Kevin Baker in Jupiter, Fla.

For additional Investment Research check out our Ratings Research Center.

Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by, covering equity and mutual fund ratings. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,572.19 +215.32 1.24%
S&P 500 2,038.65 +25.76 1.28%
NASDAQ 4,710.0670 +65.7550 1.42%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs