7 High-Yield ETFs Income Investors Will Love

Treasuries and CDs just aren't cutting it nowadays

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PowerShares Preferred Portfolio ETF

The PowerShares Preferred Portfolio ETF (NYSE:PGX) contains many of the same financial companies that PGF holds, although the actual preferred shares differ.

PGX contains not only financial sector preferreds, but also preferreds from a variety of other industries.

In all, the fund holds a total of 45 of the best preferred stocks out there. That variety has helped the fund yield 6.54%. It’s also helped the share price rise 4.9% so far in 2012.

iShares iBoxx $ High Yield Corporate Bond ETF

The iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG) is based on the index of the same name, and that index is comprised of a broad representation of high-yield corporate bonds.

Companies such as BlackRock (NYSE:BLK), HCA Holdings (NYSE:HCA) and Sprint Nextel (NYSE:S) are represented in this fund’s corporate bond basket. Combined, the holdings in HYG allow the fund to have a 7.48% yield, along with a modest 0.7% year-to-date share price appreciation.

SPDR Lehman High Yield Bond ETF

The SPDR Lehman High Yield Bond ETF (NYSE:JNK) is a collection of high-yield corporate bonds, sometimes derisively called “junk” bonds. In fact, the ticker symbol JNK pays homage to the junk label. But there’s nothing junky about the 7.5% yield of the bonds in this portfolio. There’s also nothing junky about the 2.7% gain in the fund since the beginning of the year.

JNK has many of the same holdings as HYG, but the different mix of bonds in JNK has it coming out on top of my list of high-yield ETFs for the hungry income investor.

This article was originally posted on Traders Reserve.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/7-high-yield-etfs-income-investors-will-love-cvy-pcy-phb-pgf-pgx-hyg-jnk/.

©2014 InvestorPlace Media, LLC

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