![]() A closed-end fund is a fund that issues a set number of shares in an initial public offering and then trades like a stock.)įinancial companies and utilities make up 38% of the Guggenheim portfolio. (MLPs are publicly traded companies - usually involved in real estate or natural resources - with the tax benefits of a limited partnership. common stocks, preferred stocks, real estate investment trusts, master limited partnerships, closed-end funds and foreign stocks that trade in the U.S. The fund holds 120 securities, including U.S. The ETF charges 0.48% annually.Ī high-yielding ETF that offers more appreciation potential is Guggenheim Multi-Asset Income ETF ( CVY). The ETF’s three-year annualized gain of 6.8% beats the S&P 500’s return by an average of 9.7 points per year. Preferred stocks tend to behave more like bonds than common stocks, rising in value when interest rates fall and declining in price when rates rise. About 90% of the fund’s assets are in preferreds issued by financial companies, which means the fund is not diversified across many sectors and is highly concentrated in an industry that some still consider to be on shaky ground. Preferred Stock Index Fund ( PFF), which tracks 220 preferred stocks from 44 U.S. Those kinds of investors may prefer iShares S&P U.S. ![]() It charges a fee of 0.6% annually.įor some people, yield is everything. The ETF, which yields 4.5%, returned 12.3% in 2010. The telecommunication services sector, accounting for 24% of assets, is now the ETF’s biggest sector. Because of the big decline in their stock prices during the bear market and the removal of stocks that had eliminated or cut their dividends, financials now account for just 20% of the portfolio. ![]() In 2009, the fund rebounded, surging 64%. With 51% of the portfolio tied up in financials at the beginning of 2008, the First Trust fund was one of the worst-performing global-stock ETFs that year, plunging 50%. each account for 17% of the portfolio’s country exposure, with the United Kingdom at 11.9% and Canada at 8.6%. Split between large-cap and midcap stocks, 26% of the portfolio comes from North America, 33% from Western Europe and 33% from Asia. First Trust DJ Global Select Dividend Index Fund ( FGD) tracks an index of 100 high-yielding stocks from the developed world. The ETF’s expense ratio is 0.63% a year.Īlthough emerging markets are hot, it’s good to have a foothold in the broader world. Companies from Taiwan and Brazil make up 38% of the fund, while there’s no exposure to China or India. The fund yields 3.1%, far topping the emerging-markets index’s yield of 2.2%. ![]() The ETF gained 7.9% annualized over the past three years, outpacing the MSCI Emerging Markets index by an average of eight points per year. The ETF holds about 300 stocks, representing the 30% with the highest yields in the index. It holds the highest-yielding stocks in the WisdomTree Emerging Markets Dividend index, which tracks about 1,000 dividend-paying companies with a market capitalization of $200 million and up on major exchanges in 19 developing nations. But instead of buying an ETF that tracks the benchmark MSCI Emerging Markets Index, look at the WisdomTree Emerging Markets Equity Income Fund ( DEM). (All returns are through December 31.)īecause of their potential for faster growth, emerging markets should produce greater returns than the U.S. In 2010, the ETF returned 16.4%, compared with the S&P’s 15.1% rise. Over the past five years, SDY returned 3.3% annualized, beating the S&P 500 by an average of one percentage point per year. Most are high-quality, large-capitalization stocks that trade at reasonable prices. It holds 60 companies from the S&P 1500 Index that have lifted their dividends at least 25 straight years. Our top choice is SPDR S&P Dividend ETF ( SDY), which tracks the S&P High-Yield Dividend Aristocrats Index.
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