This Day On The Street
Continue to site
ADVERTISEMENT
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

New Multi Asset Fund Goes Global In Search of Yield

Dividend stocks, which make up a quarter of both funds tend to be interest rate sensitive because their high yields are less compelling when investors can switch to bonds for higher yields and lower volatility. The iShares Select Dividend ETF (DVY)lagged behind the S&P 500 for most of the Bernanke induced sell off that started in late May.

In that same period the iShares US Preferred Stock ETF (PFF)and the iShares International Preferred Stock ETF (IPFF)dropped 6.8% and 9% respectively as the S&P 500 went down 6%. However the S&P 500 made a short term bottom in late June and while it has recovered much of that decline neither PFF nor IPFF has recovered.

The MLP space has fared a little better. The Alerian MLP ETF (AMLP)is down 3.7% since the Bernanke press conference compared to a 2.1% for the SP 500.

Comparing these segments to a broad equity benchmark is not an apples to apples comparison but where higher yielding holdings are typically thought to be less volatile than the broad market prospective fund holders should know that will not always be true if interest rates go up meaningfully.

At the time of publication the author held no positions in any of the stocks mentioned.

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

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
Submit an article to us!
SYM TRADE IT LAST %CHG
AMLP $17.18 0.00%
DVY $78.91 0.00%
EMB $112.67 0.00%
HYG $90.77 0.00%
IPFF $21.23 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs