Related: Low U.S. Interest Rates Boost International Dividend ETFs
“Referring again to the Fed, if they expect yields to be low for the foreseeable future it might be a good idea to look for well-constructed funds, like Invesco’s PEY, which holds best in class, proven, established, well capitalized companies which can ride out a few years of slower growth,” according to a Seeking Alpha analysis of PEY.
PEY allocates 24.3% of its weight to utilities stocks. Most investors view utilities as a reliable, income-generating asset that exhibit some bond-like characteristics. As interest rates declined, the sector appealed to many income investors for its relatively higher yields.
Utilities traditionally trade at richer multiples relative to the broader market due to the sector’s defensive traits, but consumer staples are actually more expensive at the moment.
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PowerShares High Yield Equity Dividend Achievers Portfolio
