In this week’s Macro Theme, we review our “Slowing Dragon” theme. We began discuss...
Top Income ETFs for 2016
12/18/2015 9:00 am EST
When it comes to income ETFs, there is no shortage of great ideas as we enter 2016, suggests fund expert Doug Fabian, editor of Successful ETF Investing.
The elephant in the room of a rate hike by the Federal Reserve in December will dominate the income landscape, but it won’t alter the picture when it comes to ways to generate yield from your assets.
Here are my five best ETF ideas for 2016 if your primary goal is generating income.
1) SPDR DoubleLine Total Return Tactical ETF (TOTL)
This bond fund is actively managed by the “New Bond King,” Jeffrey Gundlach of DoubleLine Capital.
The fund takes advantage of the best bonds in the market. The fund invests across global fixed-income sectors with an eye toward shorter-duration bonds.
2) iShares US Preferred Stock (PFF)
This fund gives you exposure to the best preferred stocks in the market. These hybrid securities are sort of like stocks and sort of like bonds, as they tend to move higher with the equity markets while also delivering strong yields.
3) PowerShares CEF Income Composite ETF (PCEF)
This ETF fund of funds gives you exposure to the closed-end fund market. That market consistently has delivered outstanding yields for income-oriented investors.
4) iShares US Real Estate ETF (IYR)
Real estate investment trusts (REITs) are a fantastic tool for generating yield. In this fund of funds, you get broad-based exposure to the best REITs operating in the market today.
5) iShares Select Dividend ETF (DVY)
This is the best ETF for exposure to the biggest and arguably the best dividend-paying stocks in the market today. DVY gives you a very solid yield along with the upside potential of the broader equity markets.
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