Don't Abandon High-Yield Bond ETFs Just Yet
Market Vectors Preferred Ex Financials (PFXF) with its approximate annual distribution yield near 6% fits the bill.
Another reasonable asset is shorter-term high yield corporates. For example, the Guggenheim BulletShares 2017 High Yield Corporate (BSJH) is a diversified basket that you can expect to mature in 2017. The SEC 30-day of 5% is likely to perform as a cash flow generator with limited volatility.
Finally, for those who believe that the safest debt in the world may reside in Australia and New Zealand, there's the WisdomTree Australia and New Zealand Debt Fund (AUNZ). The 2.9% distribution yield alone may not seem all that appealing to yield hunters. On the other hand, modest capital appreciation in these country's currencies could easily provide an attractive total return.
Follow @ETFexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts