NEW YORK (TheStreet) -- Looking to invest in stocks but don't want the volatility? Then consider buying the iShares MSCI USA Minimum Volatility ETF (USMV) , said Brock Moseley, managing director at Miracle Mile Advisors.
"The beauty has been that you're only capturing 60% to 70% of the downside," he explained of the exchange-traded fund. "so when you have that volatility, it really cushions" some of those losses.
He added, "But you're getting most of the upside" when stocks do move higher.
What about investors looking for yield but don't want to own bonds? There's an ETF for that, too. Investors who want yield and lower volatility should consider owning the Global X SuperIncome Preferred ETF (SPFF) , he said. The ETF has a low correlation to the S&P 500, and pays a handsome dividend yield of 7.15%.
Another benefit is investors don't have to absorb high credit risks to get that big yield, Moseley added, and the fund isn't as exposed to interest rate risks as other high-yielding assets.
Finally, for investors who want both yield and equity exposure Moseley suggests the ALPS Sector Dividend Dogs ETF (SDOG) , which has a dividend yield of 3.3%.
The ETF equally weighs the 10 sectors in the S&P 500, then selects the top five highest dividend-paying stocks, he explained. Historically, this method tends to outperform the broader market over a longer time horizon. In 2014, the ETF has outperformed the S&P 500 by 300 basis points, Moseley concluded.
-- Written by Bret Kenwell