Dividend paying stocks have been a popular theme among investors, but you don’t need to look for dividend-focused funds to get your income fix. Along with their exposure to the rising costs of raw materials, equities-based commodity exchange traded funds offer attractive yields as well.
Stephen D. Simpson for Commodity HQ highlights five high-yielding, equities-based commodity ETFs for the income-minded investor:
The Market Vectors Rare Earth/Strategic Metals (NYSEArca: REMX) tracks companies that mine and produce rare earth metals used in electronic devices, along with strategic metals. Top country allocations include Australia 18.0%, U.S. 17.5% and China 12.9%. REMX has a 0.57% expense ratio and a 7.77% yield. [What is an ETF? — Part 24: Commodity Producers]
The Market Vectors Junior Gold Miners (NYSEArca: GDXJ) follows a basket of mid- and small-cap gold miners – mid-caps make up 21.6% of the fund and small-caps make up 78.4%. The fund has a heavier weight to Canada at 61.4% and a 25.2% weighting in Australian miners. GDXJ has a 0.54% expense ratio and a 5.55% yield.
The Global X Uranium (NYSEArca: URA) holds uranium miner stocks. This fund’s country allocations include Canada 54.6%, Australia 30.5% and U.S. 15.0%. URA has a 0.69% expense ratio. The ETF paid a $0.39 per share distribution in 2011, or a 4.9% yield today.
The Global X Copper Miners (NYSEArca: COPX) tracks global copper miners, with top country allocations in Canada at 38.1%, U.K. at 14.7% and the U.S. at 11.2%. Investors should know that the fund, with $31.3 million in assets, has an average trading volume of 43,549 and a bid/ask spread of 0.16%, according to Morningstar. COPX has a 0.65% expense ratio and a 4.82% yield.
The EG Shares Emerging Markets Metals/Mining (NYSEArca: EMT) invests in emerging market mining operations. Top country allocations include South Africa 22.9%, Brazil 18.0% and China 16.9%. This fund has $12.5 million assets under management, with an average 5,566 shares traded per day and a 1.21% bid/ask spread. EMT has a 0.85% expense ratio and a 4.67% yield.
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article.