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

Income-Generating ETFs While Waiting Out The 'Fiscal Cliff'

While some of those folks have genuinely retired from the "baby boom" ranks, millions more have simply given up on the notion of providing for themselves. An astonishing 3.1 million people added themselves to Social Security disability, more than the 2.6 million new jobs added to payrolls in the same three years.

How does this relate to exchange-traded funds and portfolio allocation? Simply stated, we won't get enough certainty about the future until after the November election. Sure, we can place bets based on polling data. We might try to sell S&P 1420 and buy at S&P 1280. However, few investors wish to trade within a narrow 10% band.

If you've been paying attention to my columns for the last six months, then you already have a pretty keen idea where I have been making money on the moderately conservative portion of the risk spectrum . This includes, but it is hardly limited to: diversified high-yield corporate bonds, emerging-market bonds, preferred shares, real estate investment trusts as well as dividend stocks.

Even as the broader stock market indexes of the world struggle for direction, many of the my top holdings for clients keep hitting 52-week highs for total return.

In diversified high yield, iShares High Yield Corporate (HYG) remains a "fave." PowerShares Emerging Market Sovereign (PCY) gets the nod for this asset class because it is dollar-hedged. There's little reason to look further than PowerShares Preferred (PFF) if you're not comfortable picking individual securities.

Dividend stocks? iShares High Dividend Equity (HDV) will give you more exposure to health care, though Vanguard High Dividend Yield (VYM) would be difficult to beat over time due to its cost structure. Finally, iShares FTSE NAREIT Mortgage REIT (REM) has been a remarkable cash flow generator, in spite of Europe and perhaps because of it.

You can listen to the ETF Expert Radio Show "LIVE", via podcast or on your iPod. You can follow me on Twitter @ETFexpert.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

Gary Gordon reads:

Real Clear Markets
Jeff Miller
Charles Kirk
On Twitter, Gary Gordon follows:

Jonathan Hoenig
Doug Kass
Hard Assets Investor
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
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
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs