|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||20.93 - 21.38|
|52 Week Range||19.67 - 23.00|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.75%|
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.
Options strategies aren't used very often in the exchange-traded fund world. There are only nine ETFs that regularly use options, with total assets under management of a combined $800 million—small potatoes in the $3 trillion ETF industry. But that could be changing. Strong inflows into one options-linked ETF this year suggests investors may be taking a closer look at these products as they consider new ways to generate income and hedge against downside risk in a market that is trading at rich valuations.
Worried about a pullback? I don’t blame you. But you shouldn’t stash your portfolio in cash when you can bank this 10% dividend and be protect yourself from a drop in the stock market.
Investors can use option-writing funds to take advantage of the volatility risk premium and to diversify their equity portfolio risk.
While I generally speak at institutional- or advisor-focused conferences on ETF topics, I make a point to do at least one Money Show event a year. If you’re not familiar with the Money Show brand, it’s a series of events specifically targeting active individual investors. These are huge, cacophonous events full of everything from firms hawking cannabis investment newsletters to sage advice from big-league market pundits.