|Bid||0.00 x 900|
|Ask||0.00 x 1100|
|Day's Range||21.39 - 21.91|
|52 Week Range||19.67 - 22.99|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.43|
|Expense Ratio (net)||0.75%|
Traditional income products like CDs, money market funds and even bonds are still paying pitiful amounts of interest to savers. The explosion in ETFs has produced plenty of income and dividend focus funds. In fact, ETFdb.com tags more than 180 funds as “Dividend ETFs.” That’s a lot of different funds and ways to get your income fix.
One such ETF is the Invesco S&P 500 Buy-Write ETF (PBP) , which eponymously incorporates a buy-write strategy that tracks the CBOE S&P 500 BuyWrite IndexSM. The buy-write strategy incorporated by PBP consists of an option strategy that features a purchase of securities comprised within the underlying index in conjunction with the sale of an at the money index option--in general, known as call options. The primary objective of the buy-write strategy is to produce income through the premium earned when the option contracts offered are retained if the options are not exercised. In times of volatility, the propensity for the options to go unexercised are low, but during times of economic doldrums when markets are stagnating, unexercised options are more prevalent.
After a short calm period, trade war fears again spooked investors leading to rough trading on Wall Street. Notably, Dow Jones fell for the fifth straight session on Jun 18 when the trade tension between the world’s top two economies flared up again.Source: Investment Zen via Flickr (Modified)
For those of you seeking really high-yield exchange-traded funds, this article is for you. Finding dividends above 9% is really challenging, because they either involve companies whose stock prices are falling (and therefore yields rise in turn), or they are leveraged ETFs. You just need to be aware that if the market or the investments in these high-yield ETFs turn against you, they will turn against you in a much bigger way, and very quickly as well.