Investors interested in a fixed-income option with exposure to the rapidly expanding U.S. energy sector can take a look at MLP exchange traded products, such as the UBS ETRACS Alerian MLP Infrastructure ETN (NYSEArca: MLPI), which has a 4.47% 12-month yield. [An ETN Option for MLP Investors]
BDCs are high-dividend-paying firms that focus on lending senior secured loans to midsized companies. While they offer high yields, these companies have weakened this year after being de-listed from large small-cap indices. The Market Vectors BDC Income ETF (NYSEArca: BIZD) has dipped 4.8% year-to-date while the E-TRACS Wells Fargo Business Development Index ETN (NYSEArca: BDCS) is down 4.3%. BDCS shows a 7.51% 12-month yield and BIZD comes with a 6.43% 12-month yield. [BDC ETFs Weaken as Russell Joins S&P in Giving Companies the Boot]
“The thing I want people to do in fixed income, most importantly, is look at what they own,” William Eigen III, manager of the JPMorgan Strategic Income Opportunities Fund, said at the annual conference, reports Jeff Benjamin for InvestmentNews. “Be more diversified than I think you are, because it’s one of the most dangerous times in history now to just hold beta.”
For more information on income options, visit our dividend ETFs category.
Max Chen contributed to this article.