Dividend ETF #3: YieldShares High Income ETF (YYY)
Dividend Yield: 5.6%
YieldShares High Income ETF (YYY) is more like a fund-of-funds dividend ETF.
YYY owns shares in a host of closed-end funds. So not only are those closed-end funds themselves diversified, but the ETF itself becomes ultra-diversified because it’s a collection of closed-end funds. The top 10 holdings take up 47% of assets, which is a little on the weighty side. Top weights go to, among others, Eaton Vance Enhanced Equity Income II (EOS), which itself has Google (GOOG) as its top holding, and Eaton Vance Tax-Managed Global Dividend Equity Income (EXG), which has Nestlé (NSRGY) as its top holding.
I love the broad diversification here, which doesn’t include stocks that pay dividends, yet it still yields 5.6%. However, expenses are high at 1.65%
As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets @ichabodscranium.