ETF Income Portfolio

“The bad news is that yield is expensive right now. Because rates have stayed low for a really long time and look set to stay low, investors have gotten a bit desperate and pushed up valuations of high-yielding assets to lofty heights,” the analyst said. “I believe patience will likely be rewarded down the line with buying opportunities.”

Morningstar ETF Income Portfolio:

  • iShares MSCI EAFE Min Volatility (NYSEArca: EFAV): 9.7% weighting; 1.5% yield
  • iShares MSCI Emerging Market Min Vol Index (NYSEArca: EEMV): 10.3% weighting; 2.3% yield
  • PIMCO 0-5 Year High Yield Corporate Bond Index ETF (NYSEArca: HYS): 19.9% weighting; 5.1% yield
  • PIMCO Total Return ETF (NYSEArca: BOND): 31.6% weighting; 3.5% yield
  • PowerShaers S&P 500 Low Volatility (NYSEArca: SPLV): 9.6% weighting; 2.9% yield
  • WisdomTree Emerging Markets Equity Income (NYSEArca: DEM): 10.3% weighting; 3.6% yield
  • Cash: 8.8%

For more information on the fixed-income market, visit our bond ETFs category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own DEM and BOND.