This Day On The Street
Continue to site
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

Unique Yield ETFs to Keep Skin in the Game

NEW YORK ( TheStreet ) -- As China struggles to stick to its growth trajectory and fears of Europe's sovereign debt crisis make their way back into the picture, investors are likely beginning to question the longevity of the market's early-year rally. This recent bout of turmoil may persist in the coming weeks and lead some to embrace the, "sell in May and go away" mantra, but I feel that exiting the market at this time is not the best idea.

Rather, as turbulence persists, investors may want to consider revisiting some overlooked or unique yield-focused exchange traded products.

Dividend-paying equities and high-yielding corners of the fixed-income universe are two options that will allow individuals to keep some skin in the game, while maintaining an element of protection against near-term upheavals. They have admittedly struggled to hold up against broad funds like the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average Index ETF (DIA) in 2012, as bulls have had their hooves pressed firmly on the gas pedal.

However, dividend ETFs like the iShares Dow Jones Select Dividend Index Fund (DVY) and the Vanguard Dividend Achievers ETF (VIG) have managed to stay in positive territory on a year-to-date basis. As the more aggressively structured of the two, the VIG has been the clear leader, returning more than 5.5% during this period. DVY's year-to-date performance fails to break the 4% barrier.

Either VIG or DVY are worth considering in the event that the clouds continue to gather over the global macroeconomic landscape. However, those who feel that any upheaval will be short-lived, and will ultimately pave the way to another steep leg higher, may want to direct their attention toward the Vanguard-branded option. With some of the largest slices of its portfolio dedicated to industrials and energy, the fund is well-suited for bullish market conditions.

While funds like DVY and VIG may satisfy a fearful investor's appetite for equities, high-yielding options like dollar-denominated emerging market bonds may offer an attractive mix of risk and safety for fixed income-hungry individuals, or those looking to adjust their developed market exposure.
1 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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DVY $82.04 0.00%
EMB $111.63 0.00%
PCY $28.61 0.00%
VIG $80.98 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs