Investors can find yield in ETFs tracking real estate, closed-end funds, dividend stocks and preferred shares with funds that are throwing off income of more than 6%.
“Low yields on Treasuries and high-quality bonds are pushing income investors to take on more risk in search of yield,” writes Russ Krull at The Motley Fool.
“A number of high-yielding exchange traded funds are cranking out juicy yields and a little digging into the fund assets will shed some light on the risks involved,” Krull said. [Dividend ETFs: Look Before You Leap]
Based on current ETF yields, asset classes with some of the highest current yields are mortgage REITS, closed-end funds, international stocks and preferred stocks. [Mortgage REIT ETFs Yielding Over 10%]
An ETF comprised of closed-end funds is an alternative for income-seeking investors. PowerShares CEF Income Composite (NYSEArca: PCEF) gives investors the best of both worlds–the simplicity of an ETF with the yield of a basket of CEFs. [Consider this ETF for Steady Income]