Gold exchange traded funds dulled Wednesday after minutes from the Federal Reserve’s latest meeting showed that the central bank could hike interest rates in June if conditions are right. The Fed minutes revealed that the policy makers are less concerned about risks posed by the global economic and financial conditions and pointed to strengthening U.S. labor market, the Wall Street Journal reports. Click to read more!
The weaker dollar, sliding Treasury yields and the Federal Reserve’s inability to raise interest rates to this point this year are combining for a perfect storm for high-yielding asset classes, including preferred stocks.
Last year, exchange traded funds such as the iShares U.S. Preferred Stock ETF (NYSEArca: PFF) and the PowerShares Preferred Portfolio (NYSEArca: PGX) were stung by speculation the Fed would move forward with multiple rate hikes in 2016, but there has not been a single rate increase through the first four-plus months of the year. Click to read more!
As the markets wade through heightened volatility, many have capitalized on the wild swings with leveraged and inverse exchange traded funds (ETFs) to juice returns. However, while the strategies may generate lucrative returns, investors should fully understand how these products work and the risks involved. Click to read more!
Exchange traded funds with an emphasis on dividends have become increasingly popular. Not to mention dividend ETFs contributed a substantial portion of the growth experienced by smart beta or intelligent index ETFs. But all dividend ETFs are not created equal and some sport higher expense ratios that can erode yields and total returns. Cost-conscious income investors need to be aware of this scenario with ETFs such as the First Trust Value Line Dividend Index Fund (NYSEArca: FVD). Click to read more!
The Global X MSCI Greece ETF (NYSEArca: GREK), the lone exchange traded fund dedicated to Greek stocks, has been notoriously volatile over the past several years, but to its credit, GREK is up more than 37% over the past 90 days and some market observers believe now is the time to invest in Greece. Click to read more!
The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, are among this year’s standout commodities exchange traded products, but some energy market observers believe crude is ready to retreat. Click to read more!
High-yielding, income-generating asset classes are benefiting this year as Treasury yields decline and the Federal Reserve puts off another interest rate increase. The group of beneficiaries includes exchange traded funds holding mortgage real estate investment trusts (mREITs), such as the iShares Mortgage Real Estate Capped ETF (NYSEArca: REM) and the Market Vectors Mortgage REIT Income ETF (NYSEArca: MORT). Click to read more!
Real estate investment trusts (REITs) and sector-related exchange traded funds (ETFs) are a good source of attractive payouts in a low-yield environment.
REITs are securities that trade like a stock and invest in real estate directly through property ownership or mortgages. Consequently, revenue are mainly generated through rents or interest on mortgage loans. To qualify for special tax considerations, the asset also distributes the majority of income, about 90% of taxable profits, to investors as dividends. Click to read more!