5 Low-Risk Dividend Funds — and 3 Aggressive High-Yield ETFs

Stick with some 'safer' yields, or go for the gusto

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5 Low-Risk Dividend Funds — and 3 Aggressive High-Yield ETFs

High-Yield Aggressive Fund #3: Powershares High Yield Equity Dividend Achievers

PowerShares185 5 Low Risk Dividend Funds    and 3 Aggressive High Yield ETFsExpense ratio: 0.62%
1-Year Return:
18%
Dividend Yield:
3.7%
Net Assets:
$200 million
Top Holdings
: Pitney Bowes (NYSE:PBI), Old Republic International (NYSE:ORI), Vector Group (NYSE:VGR)

The Powershares High Yield Equity Dividend Achievers (NYSE:PEY) fund is based on the Mergent’s Dividend Achievers Index, and includes smaller and riskier stocks in pursuit of bigger dividends. Of particular note is the high exposure to financial stocks — about 25% of the portfolio is in this admittedly volatile sector. Of course, the 33% in utilities does add some stability to offset that. But given the uncertain state of financial stocks (and the high expense ratio), this should be considered a riskier play for dividend investors. This also is a smaller fund with lower volume, and that adds a bit to the riskiness.

For more info, visit this ETF’s page on the Invesco PowerShares website.

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/5-low-risk-dividend-funds-and-3-aggressive-high-yield-etfs/.

©2014 InvestorPlace Media, LLC

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