Searching for Yield
With investors stretching for yield, it seemed like a good idea to look for asset types generating lots of yield and review some of the risks that go with reaching.
To find the yield, I filtered the 100 highest yielding ETFs as listed by ETFdb.com and profiled the five highest yielding funds with more than $300 mil in assets. The five funds hold four different types of investments:
- Mortgage REITs (the only surprise would have been if mREITs weren't on the list)
- Closed-end funds
- High-yielding international stocks
- Preferred stocks
CAPS blog bonus: The sixth highest yielding fund - AMLP - would have added Master Limited Partnerships to the mix.
As you would expect there are risks that go along with the high yields. I did give one of the funds - DWX - a CAPS green thumb and for a change it didn't immediately start trashing my accuracy and score.
As always, your comments or questions are welcome.
Fool on! Russ