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As the start of Q4 spreads optimism in the broader market with the S&P 500 and Dow Jones Industrial hovering around record levels, the buzz about stretched valuations has surfaced all over again. After all, the S&P 500 is now trading about 22.6% higher than its 52-week low level.
If the trend continues for a few more days on hopes for materialization of the tax reform and decent earnings releases, investors looking for cheap stocks may be disheartened. However, there is another way by which investors can enjoy gains, i.e. dividend yield.
There is a feeling of monetary policy tightening in the United States and the Eurozone, as these economies are on the mend. While the Fed is mulling over reverse QE and a rate hike in December, the ECB chief is also thinking about QE tapering. If these tightening moves hold good soon, bond yields are likely to see a sharp rise (read: Top ETF Stories of Third Quarter).
This should bolster demand for high dividend products as yield-hungry investors will be relying more on regular source of current income. Even if rates continue to rise, there are always dividend yield-weighted ETFs that offer benchmark-beating current income. As of Oct 6, the yield on benchmark 10-year U.S. Treasuries was 2.35%.
Notably, as per xtf.com, these are one of top trending investment objectives right now. We thus highlight a few ETFs with over 3% yield, which were in the green in the one-week frame. Take a look at the list (read: 5 Winning ETF Strategies for Q4).
These funds can make you rich even in 2018 if Trump’s administration doesn’t match the expectations of the market, OPEC deal fails to stand up or Fed’s policy tightening goes back to the sluggish mode all over again.
Emerging markets have been pretty strong of late. The fund DVYE measures the performance of emerging market companies that provided relatively high dividend yields on a consistent basis over time. The fund yields about 3.99% annually (read: EM ETFs: What You Need to Know Before Investing).
The fund looks to track the S&P Emerging Markets Dividend Opportunities Index. It gives exposure to the 100 highest-yielding emerging market common stocks that have cleared certain sustainability and earnings growth screens. The fund yields about 3.27% annually.
The underlying index of the fund follows a dividend yield weighted methodology that looks to track the performance of about 24 to 40 small and mid-cap equity REITs in the U.S. It yields about 6.95%.
WisdomTree US Dividend ex-Financials ETF
The underlying index measures the performance of high dividend-yielding stocks outside the financial sector. Utilities, Health Care, Energy and Consumer Discretionary are the top four sectors. The fund yields about 3.20% annually.
Guggenheim Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
The 30-stock fund looks to follow the Dow Jones Industrial Average Yield Weighted index. Verizon Communications (6.18%), Intl Business Machines (5.26%) and Chevron Corp (5.18%) are the top three stocks of the fund. Information Technology (19.3%), Industrials (17.2%) and Health Care (13.3%) are the top three sectors of the fund. It yields about 2.64% annually (read: Dow at Record High: More Upside for ETFs?)
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5 Trending Dividend-Yield Weighted ETFs
As the start of Q4 spreads optimism in the broader market with the S&P 500 and Dow Jones Industrial hovering around record levels, the buzz about stretched valuations has surfaced all over again. After all, the S&P 500 is now trading about 22.6% higher than its 52-week low level.
If the trend continues for a few more days on hopes for materialization of the tax reform and decent earnings releases, investors looking for cheap stocks may be disheartened. However, there is another way by which investors can enjoy gains, i.e. dividend yield.
There is a feeling of monetary policy tightening in the United States and the Eurozone, as these economies are on the mend. While the Fed is mulling over reverse QE and a rate hike in December, the ECB chief is also thinking about QE tapering. If these tightening moves hold good soon, bond yields are likely to see a sharp rise (read: Top ETF Stories of Third Quarter).
This should bolster demand for high dividend products as yield-hungry investors will be relying more on regular source of current income. Even if rates continue to rise, there are always dividend yield-weighted ETFs that offer benchmark-beating current income. As of Oct 6, the yield on benchmark 10-year U.S. Treasuries was 2.35%.
Notably, as per xtf.com, these are one of top trending investment objectives right now. We thus highlight a few ETFs with over 3% yield, which were in the green in the one-week frame. Take a look at the list (read: 5 Winning ETF Strategies for Q4).
These funds can make you rich even in 2018 if Trump’s administration doesn’t match the expectations of the market, OPEC deal fails to stand up or Fed’s policy tightening goes back to the sluggish mode all over again.
iShares Emerging Markets Dividend ETF (DVYE - Free Report)
Emerging markets have been pretty strong of late. The fund DVYE measures the performance of emerging market companies that provided relatively high dividend yields on a consistent basis over time. The fund yields about 3.99% annually (read: EM ETFs: What You Need to Know Before Investing).
SPDR S&P Emerging Markets Dividend ETF (EDIV - Free Report)
The fund looks to track the S&P Emerging Markets Dividend Opportunities Index. It gives exposure to the 100 highest-yielding emerging market common stocks that have cleared certain sustainability and earnings growth screens. The fund yields about 3.27% annually.
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY - Free Report)
The underlying index of the fund follows a dividend yield weighted methodology that looks to track the performance of about 24 to 40 small and mid-cap equity REITs in the U.S. It yields about 6.95%.
WisdomTree US Dividend ex-Financials ETF
The underlying index measures the performance of high dividend-yielding stocks outside the financial sector. Utilities, Health Care, Energy and Consumer Discretionary are the top four sectors. The fund yields about 3.20% annually.
Guggenheim Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
The 30-stock fund looks to follow the Dow Jones Industrial Average Yield Weighted index. Verizon Communications (6.18%), Intl Business Machines (5.26%) and Chevron Corp (5.18%) are the top three stocks of the fund. Information Technology (19.3%), Industrials (17.2%) and Health Care (13.3%) are the top three sectors of the fund. It yields about 2.64% annually (read: Dow at Record High: More Upside for ETFs?)
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>