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.
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV