On the flip side, certain high yield bond and preferred shares ETFs are now sitting just below their 200 day-moving-averages which signals an entry point for some investors. The SPDR Barclays High Yield Bond ETF (NYSEARca: JNK) and the iShares US Preferred Stock ETF (NYSEArca: PFF) are 5% under their highs and are in negative territory. The yield of these ETFs is between 5% and 6% with the possibility of price appreciation. [Dividend ETFs, Yield Producing Equities Back in Focus]
The Alerian MLP ETF (NYSEArca: AMLP) is sporting a yield of about 6% and is sitting near 2013 highs. The strength in oil prices, around $100 per barrel, has supported the performance of the fund. The ETF does not invest in oil, rather it is a play on oil and energy infrastructure. The current performance of the ETF makes it a compelling high yield investment. [MLP ETF For Yield, Diversification]
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own AMLP, REM and JNK.