Zacks Investment Ideas feature highlights: Arrow Dow Jones Global Yield ETF, SPDR S&P International Dividend ETF, First Trust Tactical High Yield ETF, ProShares High Yield Interest Rate Hedged ETF and YieldShares High Income ETF - Press Releases

For Immediate Release

Chicago, IL- January 21, 2015 – Today, Zacks Investment Ideas feature highlights Features: Arrow Dow Jones Global Yield ETF (GYLD-Free Report), SPDR S&P International Dividend ETF (DWX-Free Report), First Trust Tactical High Yield ETF (HYLS-Free Report), ProShares High Yield Interest Rate Hedged ETF (HYHG-Free Report) and YieldShares High Income ETF (YYY-Free Report).

5 Dividend ETFs to Buy for Income in 2015

The volatile start to 2015 has once again highlighted the importance of income-focused investing. Be it bonds, high dividend equities, or pass-through securities, picks that zero in on higher yielding securities have done well to start this uncertain year.

And while some have been worried about the specter of a possible Fed rate hike later in the year and its impact on higher yielding securities, fighting deflation has really been the focus of central banks around the globe instead. Europe appears to be on the cusp of a QE program of its own, while central banks from India to Denmark have slashed rates in recent weeks, showing us that much of the world is still decidedly in easing mode (read India ETFs Surge After Surprise Rate Cut).

Commodities are also helping this trend, with oil especially easing inflationary worries. The important commodity is having significant trouble finding any positive momentum as of late, largely thanks to both demand worries and a flood of supply, dragging down input costs for a variety of industries in the process.

Top Income Picks

In this type of environment, investors shouldn’t be worried about their income picks for 2015. And while you can always buy a few select high quality dividend payers here in the U.S., ETFs offer up the chance to truly diversify your selections in the income world which should protect against a slump in any one sector of the economy.

And best of all, many of these ETFs have been beaten down in recent months, putting these high yielders into value territory. This makes many of these funds interesting picks not just for their yield, but in terms of a bounce back should markets continue to favor income securities.

Below, we have highlighted five great selections that fit this bill and offer up a nice combination of solid diversification benefits, value potential, and strong yields. In fact, all of the five listed below have 30 Day SEC yields in excess of five percent, making them excellent income choices for even the most discriminating investor out there:

Arrow Dow Jones Global Yield ETF (GYLD-Free Report)

 For investors who want exposure to a variety of high yielding market areas, ArrowShares’ GYLD could be an excellent choice. This fund tracks the Dow Jones Global Composite Yield Index, giving access to five key market areas; global equities, global real estate, global sovereign debt, global alternatives, and global corporate debt (read 4 Excellent Dividend ETFs for Income and Stability).

The fund puts 20% in each of five sectors, holding 30 securities in each of the five major groups. This ensures that the product is well diversified and that single company risk isn’t an issue. The fund pays a 30-Day SEC Yield of 6.7% so it is definitely a choice for investors seeking current income in today’s market.

SPDR S&P International Dividend ETF (DWX-Free Report)

If you just want to focus on equities instead, DWX could be your ticket as this fund only focuses on high yielding stocks from around the globe.  This is done by tracking the S&P International Dividend Opportunities Index, a benchmark that holds about 100 securities in its basket.

Currently, the fund is a bit heavy in traditional high yield sectors like financials (28%), telecoms (17.6%), and utilities (15.9%), though no single company accounts for more than 3.5% of the total assets. For yields, this pays a solid 5.3% in 30 Day SEC terms, while it charges investors a reasonable 45 basis points a year in fees for the service.

First Trust Tactical High Yield ETF (HYLS-Free Report)

This is one of the few actively managed ETFs on a high income list and its focus is on the high yield bond world. In total, the ETF holds 270 securities in its portfolio and it has a net weighted average effective duration of just 3.1 years.

Yet despite this low duration, the product has an impressive 6.1% 30-Day SEC Yield making it another great income destination. And for those worried about holding higher risk junk bonds, it is worth noting that no single security makes up more than 2.5% of assets, so concentration issues aren’t really a problem in this ETF (read Where to Go in Fixed Income ETFs When Short-Term Bond Yields Are Rising).

ProShares High Yield Interest Rate Hedged ETF (HYHG-Free Report)

Some investors might be worried about bonds in general in the current environment, and who can blame them if rates do rise. However, these investors may want to look to HYHG for exposure instead as this fund still gives high yield bond access, but it also protects against rising rates as well.

The fund has an interest rate hedge built into its strategy as it takes a short position in U.S. Treasury futures. However, it still has a pretty high yield (and a modest expense ratio of just 50 basis points) of 6.3% in 30 Day SEC terms, so this could be a safer yield play for investors worried about the possibility of rising rates.

YieldShares High Income ETF (YYY-Free Report)

For a truly high income choice, YYY may be the best bet of the group. The fund tracks the ISE High Income Index which consists of 30 closed-end funds ranked highest overall in three criteria, fund yield, discount to net asset value, and liquidity (also see 3 Excellent ETFs for Growing Dividends).

Current holdings focus on a variety of CEFs from a number of fund providers, though no single CEF accounts for more than 5% of assets. The yield is where this fund truly shines though, as YYY has an impressive 30-Day SEC Yield of 8.66%.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
 
Get the full Report on GYLD – FREE
Get the full Report on DWX – FREE
Get the full Report on HYLS – FREE
Get the full Report on HYHG – FREE
Get the full Report on YYY – FREE
 
Follow us on Twitter:  https://twitter.com/ZacksResearch
 
Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch
 
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
 
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
 
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ARROW-DJ GL YLD (GYLD): ETF Research Reports
 
SPDR-SP INT DIV (DWX): ETF Research Reports
 
FT-TAC HI YLD (HYLS): ETF Research Reports
 
PRO-HI YLD IRH (HYHG): ETF Research Reports
 
YLD SHS-HI INC (YYY): ETF Research Reports
 
To read this article on Zacks.com click here.