Why is it so difficult to find good yield these days?
For the past half-decade or so, income ETFs and exchange-traded notes (ETNs) have exploded, to the point where ETFdb.com now lists some 130-plus dividend-focused equity products, 300-plus bond products and a host of other income plays on preferred stocks, alternative assets and more.
But ETFs that offer substantial yield?
Well, that can get tricky. Less than a quarter of ETFs dedicated to dividend stocks yield more than 6%, and just a handful of bond funds do. In fact, of the roughly 2,000 ETFs that ETFdb.com tracks, just 75 yield more than 6% … and many of those are extremely risky leveraged products more suited to quick traders than investors who want to just sit back and collect a decent paycheck
Still, yield hunters have a few options to choose from.
A number of exchange-traded products do, in fact, yield more than 6% — and some throw off substantially more income than that.
Investors just have to be willing to overlook a few pimples and provisos, and in some cases, get a little kinky…