Dividend exchange traded funds have been big sellers in 2011 as investors seek a conservative approach to stocks and extra income as 10-year Treasury yields again dip below 2%.
ETFs have been a good tool for dividend seekers to hunt for yield because they can invest in a basket of stocks rather than researching individual companies.
Dividend ETFs offer instant diversification with some of the highest yielding stocks. [Dividend ETFs Without the Label]
Here are five dividend ETFs offering fat yields:
- Guggenheim S&P Global Dividend Opportunities ETF (NYSEArca: LVL): yields 5.60%. Tracks the S&P Global Dividend Opportunities Index.
- SPDR Wells Fargo Preferred Stock ETF (NYSEArca: PSK): yields 6.73%. Holds preferred shares, therefore the primary source of return is generated by a fixed dividend payment. This fund seeks to replicate as closely as possible the total return of the Wells Fargo Hybrid and Preferred Securities Aggregate index. [Preferred Stock ETFs Lure Yield Hunters]
- WisdomTree High Yielding Equity Fund (NYSEArca: DHS): yields 3.51%. Tracks the WisdomTree Equity Income index, which holds many of the largest companies in the market at this time. For example, AT&T (NYSE:T), Chevron (NYSE: CVX) and Pfizer (NYSE: PFE) are all holdings.
- iShares S&P Preferred Stock Fund (NYSEArca: PFF): yields 6.66%. This fund seeks to track the price and yield performance of the S&P U.S. Preferred Stock Index.
- PowerShares Preferred Portfolio (NYSEArca: PGX): yields 6.45%. This fund seeks investment results that correspond generally to the price and yield performance of an index called The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index. The focus of the fund is on financials. [High Yield ETFs Hit as Investors Flock to Treasuries]
Guggenheim S&P Global Dividend Opportunities ETF
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.