“Conventional wisdom holds that higher dividends mean lower performance, but our research shows the exact opposite,” Bruno del Ama, chief executive of Global X Funds, said.
Many investors are using dividend ETFs as a way to dip a toe in the stock market with a more conservative strategy and income to boot. News over the weekend from Cyprus is a reminder of the macro risks still lingering in the market. [Quality Dividend ETFs Help Mitigate Risk]
Dividend ETFs include:
- Global X SuperDividend (NYSEArca: SDIV): 6.88% 30-day SEC yield
- SPDR S&P Dividend (NYSEArca: SDY): 2.58% 30-day SEC yield
- Vanguard High Dividend Yield (NYSEArca: VYM): 3.13% 30-day SEC yield
High-yield bond ETFs include:
- AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD): 8.22% 30-day SEC yield
- iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG): 5.0% 30-day SEC yield
- SPDR Barclays High Yield Bond (NYSEArca: JNK): 5.11% 30-day SEC yield
For more information on speculative grade debt, visit our junk bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own HYG and JNK.