Another area of the market investors should focus on are alternative income funds. Some of these payout a higher yield than those in the dividend sector, with the trade-off of more risk.
The iShares US Preferred Stock ETF (NYSEArca: PFF) has also dipped below its 50 day-moving-average and is flirting with its 200 day-moving-average as equity market momentum has subsided. The First Trust Multi-Asset Dividend Income Fund (NYSEArca: MDIV) and the Guggenheim Multi-Asset Income Fund (NYSEArca: CVY) both feature diversified portfolios representing REITs, preferred stocks and MLPs. [An Active ETF for High Yield preferred Shares]
iShares Select Dividend ETF
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own DVY.