3 High Yielding ETFs That Hit 52-Week Highs
ETF investors continue to search for yield, and these 3 hit the mark
E-Tracs Wells Fargo Business Development Company Index ETN (BDCS)
Technically, this exchange-traded note is not a fund. You pay 0.85% for the privilege of getting diversified exposure to the exact performance of the above-mentioned index. Business Development Companies, or “BDCs,” are publicly traded corporations that engage in lending at high yield rates to smaller fish. The larger entities often take equity ownership in the smaller venture, offering business acumen in addition to capital. They are similar to private equity firms, though the Securities and Exchange Commission (SEC) requires BDCs to invest 70% of assets in U.S. companies as well as to distribute at least 90% of taxable income in the form of dividends. (And that’s how BDC shareholders often get juicy 7%-9% yields!)
At the moment, BDCS offers about 7% annualized. Of course, investors seem to be benefiting from impressive capital appreciation as well, with the ETN hitting an all-time high.
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Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc., and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationship.
Article printed from InvestorPlace Media, http://investorplace.com/2014/01/high-yielding-etfs-hgi-ymlp-bdcs/.
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