NEW YORK (ETF Expert) --There are scores of writers, commentators and analysts who have declared the death of bonds. It should be noted that many of these people prematurely made the same declaration 10 years earlier in 2003-2004. Nevertheless, the overwhelming sentiment today is that an attempt to squeeze cash flow from a stone produces more risk than reward.
For the last few months, I have been challenging the latest predictions that interest rates must rise and that bond prices must fall. It is not that I believe rates will necessarily turn back the clock to revisit all-time lows; rather, the surge in the 10-year from 1.4% to 3.0% in 2013 may have represented two steps in one direction, while the stabilization or slight decline in rates may represent a probable step back here in 2014.
One thing is for certain. Exchange-traded fund enthusiasts are not throwing in the towel when it comes to the pursuit of higher yielding income, whether it comes from junk bonds, master limited partnerships or multi-asset funds.
Here are three high-yielders that just hit 52-week highs:
1. Guggenheim International Multi-Asset Income (HGI). This exchange-traded tracker invests at least 90% in securities that constitute the Zacks International Multi-Asset Income Index. There are roughly 155 investments selected from a universe of global real estate trusts, American Depository Receipts, master limited partnerships, closed-end funds, preferreds and royalty trusts. The 12-month yield of 4% is a highlight for those who have chosen to participate. However, the fund's $30 million in assets under management and low trading volume could make it difficult for stop-limit order advocates to exit the position at a desired price point.Guggenheim contends that HGI is geared to outperform the MSCI EAFE Index. Over the last 5 years, HGI has annualized at 13.15% whereas iShares MSCI EAFE (EFA) has compounded at 11.7% per year. Although that may sound like a venerable advantage, since HGI's inception on 7/11/2007, both funds are even at 0%. Regardless, those that might prefer HGI should make up their own mind on the appropriateness of the comparison as well as the attractiveness of the annual cash flow.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV