Key Points
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With markets still volatile, keep your portfolio protected with high-yielding exchange-traded funds (ETFs).
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The JPMorgan Equity Premium Income ETF generates income by combining some of the top blue-chip stocks.
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With markets still volatile, keep your portfolio protected with high-yielding exchange-traded funds.
Look at the Amplify CWP Enhanced Dividend Income ETF (NYSE ARCA: DIVO), for example.
With a yield of 4.73% and an expense ratio of 0.56%, the Amplify CWP Enhanced Dividend Income ETF holds large-cap companies that have a strong history of dividend growth. It also uses a covered call strategy on individual stocks to offer high total returns.
“DIVO seeks investment results that correspond generally to an existing strategy called the Enhanced Dividend Income Portfolio (EDIP),” as noted by AmplifyETFs.com. That strategy attempts to generate income through dividends and short-term covered calls in an effort to increase cash flow and consistent annual income. In addition, with that strategy, the EDIP holds blue-chip stocks from the S&P 500, the Dow 30 and the S&P 100.
There’s also the JPMorgan Nasdaq Equity Premium Equity Income ETF
With a yield of 11.2%, the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ: JEPQ) generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation.
JEPQ has an expense ratio of 0.35% at the moment.
Invesco KBW High Dividend Yield Financial ETF
With an expense ratio of 0.35%, the Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD) has a 30-day yield of 12.1%. It just paid out a dividend of just over 14 cents on June 27 to shareholders of record as of June 23. Before that, it paid out a dividend of just over 14 cents on May 23 to shareholders of record as of May 19.
It’s able to pay such a solid dividend because it invests at least 90% of its assets in stocks with competitive dividend yields. Some of which include Orchid Island Capital, Invesco Mortgage Capital, ARMOUR Residential REIT, AGNC Investment, and Annaly Capital, to name just a few of its 42 active holdings.
VanEck Mortgage REIT Income ETF
There’s also the VanEck Mortgage REIT Income ETF (NYSEARCA: MORT).
With an expense ratio of 0.42%, the MORT ETF has a 30-day yield of 12.92%. It also just paid a quarterly dividend of just over 26 cents per share on July 7. Before that, it paid a dividend of just under 38 cents per share on April 4.
The MORT ETF replicates the price and yield performance of the MVIS US Mortgage REITs Index, which tracks to performance of the US mortgage real estate investment trusts. Plus, as noted by VanEck.com, “Yields from mortgage REITs have historically been higher than those of equity REITs and many income-oriented securities.”
Some of its 27 holdings include AGNC Investment, Annaly Capital, Starwood Property Trust, Blackstone Mortgage, Ladder Capital, and Apollo Commercial Real Estate.
JPMorgan Equity Premium Income ETF
The JPMorgan Equity Premium Income ETF (NYSE ARCA: JEPI) generates income by combining some of the top blue-chip stocks – Amazon, Mastercard, Nvidia – with options strategies.
All of which help produce hefty monthly income for investors. In fact, last checked, the JEPI ETF yields about 8.62%, which isn’t too shabby at all. With an expense ratio of 0.35%, the ETF holds 122 stocks, including Visa, Mastercard, Trane Technologies, Microsoft, Oracle, The Southern Company, and Nvidia, to name just a few.
Its last dividend of $0.39953 was paid on July 3. Before that, the JEPI ETP paid a dividend of $0.54001 on June 4.
We can also look at the iShares Core High Dividend ETF
With a yield of 3.32% and an expense ratio of 0.08%, the iShares Core High Dividend ETF (NYSE ARCA: HDV) tracks the investment results of an index composed of relatively high-dividend-paying U.S. equities. Some of its top holdings include Exxon Mobil, Chevron, and Johnson & Johnson.
Global X Super Dividend U.S. ETF
With a yield of 5.5%, the Global X Super Dividend U.S. ETF (NYSE ARCA: DIV) invests in some of the highest dividend-yielding stocks in the U.S. Some of those top holdings include Spire (SR), Kinder Morgan. (KMI), Omega Healthcare (OHI), Philip Morris (PM), Duke Energy (DUK), AT&T (T), and Dominion Energy (D), to name just a few.
Invesco S&P Small Cap High Dividend Low Volatility ETF
With a yield of 7.67%, the Invesco S&P Small Cap High Dividend Low Volatility ETF (BATS: XSHD) invests 90% of its total assets in the S&P Small Cap 600 Low Volatility High Dividend Index. Some of its top holdings include ARMOUR Residential, Two Harbors Investment, Ellington Financial, Innovative Industrial Properties, Ready Capital, and Cal-Maine Foods.
SPDR Blackstone High Income ETF
With a yield of 8.22%, the SPDR Blackstone High Income ETF (BATS: HYBL) invests in high-yield corporate bonds, senior loans, and debt tranches of US collateralized loan obligations, as noted by SSGA.com. It also uses an actively managed strategy that seeks to provide risk-adjusted total return and high current income, with less volatility than the general bond and loan segments over full market cycles.
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