Investors can choose from a number of dividend-oriented investments to quench their thirst for income, but some of the exchange traded funds that offer the beefiest yields might not be the ones you’d think of first.
For instance, Trang Ho for Investor’s Business Daily points out the iShares MSCI Singapore Small-Cap Index Fund (NYSEArca: EWSS) The ETF has a 30-day SEC yield of 3%. Over half of EWSS holdings are in real estate assets, followed by 19% in industrials, 6% in consumer staples, 4% in consumer discretionary and 5% in energy. [Some High-Yield Dividend ETFs Off the Beaten Path]
Investment strategists, though, warn that consumer spending may have peaked in 2010 to 2011. The country depends on East Asia and Chinese spending, and China’s economy is slowing.
Moreover, high rent costs has pushed foreign companies to set up shops in neighboring countries where wages are also lower. A strong currency has also depressed the export industry.
“Singapore’s economy is going through a sharp slowdown, so an investor in EWSS should have a trailing stop loss in place,” Carl Delfeld, managing partner at Chartwell Pacific, said in the article.
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