Despite expectations for a tighter monetary policy out of the Federal Reserve and rising interest rate outlook, fixed-income yields remain stubbornly low. Consequently, income-starved investors may turn back to high-yield dividend exchange traded funds to generate a little extra cash.
Yields on benchmark 10-year Treasury notes have steadily declined this year, even after the Fed announced its third rate hike in seven months. The yield on 10-year Treasuries have slipped to 2.155% from a high of 2.608% mid-March.
Consequently, yield-hungry investors can turn to alternative income-generating investments to make up the difference.
For example, ETF investors can consider dividend-focused options like the the iShares Select Dividend ETF (NYSEArca: DVY), iShares Core High Dividend ETF (NYSEArca: HDV), Vanguard High Dividend Yield ETF (NYSEArca: VYM) and Oppenheimer Ultra Dividend Revenue ETF (NYSEArca: RDIV), among others.