PowerShares will now offer four dividend-based ETFs. Advisors and investors seeking access to greater dividend yields might consider these options, especially in a rising interest rate environment. Up until now, long-term bond funds have maintained their value. But as we see more pressure on the long side of the yield curve (chart below), bond fund shareholders will look to alternatives as rising rates are sure to challenge bond fund managers to maintain net asset values.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.