The chase for yield continues, and investors are searching far and wide for the kind of high yields they used to get from bonds and munis. But you don’t have to look too far. High yields are all over the place — stocks, exchange-traded funds and even mutual funds.
You do have to be willing to get aggressive. Investing with reduced risk is a centerpiece of my stock advisory newsletter, The Liberty Portfolio. But if you want to score truly high yield, you can’t just hide under a blanket.
The nice thing about high-yield ETFs, however, is that they give you an advantage over individual high-yield stocks: diversification. High income sometimes is linked to investments fraught with risk, but you can blunt that by investing in a package of these securities. That way, if one or even a few of them blow up, you won’t absorb the full pain.
Another bonus: Many ETFs delve into the thick-dividend world without strangling you on fees.
Here’s a look at seven high-yield ETFs for those who are willing to get their hands dirty in the search for big income.