3 High Yield ETFs To Watch For August
Investors donít mind taking risks or seeing fluctuating prices, but they do mind the return of profitability. When selecting exchange traded funds (ETFs) amongst the competition, a few things should be taken into consideration; the ETF should have a certain level of assets and have a good visible trade volume, Good trading volume means it will have good liquidity and spread. Most importantly, you want to see how diverse it can potentially look on your bond portfolio. These are 3 high yield ETFs to Watch for the month of August.
Direxion Daily Energy Bull 3x Shares (NYSE: ERX), which is a non-diversified fund seeks daily investment results, before fees and expenses, and the fund invests at least 80% of assets in securitiesí in the Russell Energy Index. ERX is up 4.7% today as of the time of this writing. Volume is exceptionally heavy, having traded over 1.1 million shares so far. Since the beginning of the year, the ETF has crushed the oil industry, returning 46% year-to-date.
SPDR Nuveen Barclays Capital Build America Bond ETF (NYSE: BABS) aims to provide investment results, that before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital Build America Bond Index. It is an excellent candidate if heavy monthly income is desired. This fund would be an ideal ETF to be part of a heavy income producing portfolio. BABS recently yielded just over 5.1% and its underlying debt holdings have an average maturity of 28 years.
SPDR S&P International Telecommunications Sector ETF (NYSE: IST) is offering a current dividend yield price of about 5.18%. That blows away the return you would get on a twelve-month bank certificate of deposit, many of which currently offer yields of less than one half of one percent. Itís a given to add this to any income producing portfolio since it is diversified. The fund also benefits from heavy exposure in the developing markets. Vodafone (NYSE: VOD), which is one of the funds largest holdings, recently became Indiaís third largest mobile phone company and invested $11 billion dollars into the country, as it expects continue high growth in the worldís second most populous nation.
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