ETF Expert's Trump Trio

11/28/2016 7:00 am EST


Doug Fabian

Editor, Successful ETF Investing, ETF Trader's Edge, Weekly ETF Report, and

I think now is the time for us to put money to work in all three of our portfolios so that we can take advantage of what is a clear “Trump investment train” rolling down the tracks, suggests Doug Fabian, fund specialist and editor of Successful ETF Investing.

Here are three new buys we recommend for our model portfolios:

PowerShares Senior Loan ETF (BKLN) is one that I really like, as it invests in senior loans of banks and other lending institutions.

These are loans to corporations, partnerships or other entities, and they come from a variety of industries, geographic regions and countries.

The fund currently offers a yield of 4.63%, and the best part is that if interest rates rise, that is a net positive for BKLN, as they can invest in loans with higher interest rates.

The iShares Mortgage Real Estate Capped ETF (REM) is pegged to the mortgage REIT segment of the income world, which means it owns U.S. real estate investment trusts that hold residential and commercial mortgages.

The best part of REM for income investors is that you can ring the register monthly with a yield of 10.59%. And, what I like best about this fund is that it has had virtually no drawdown here even as bond prices have fallen sharply.

Here are new buys we recommend for our growth model portfolios:

First Trust North American Energy Infrastructure ETF (EMLP) is in the infrastructure business, with master-limited partnerships in pipeline companies, utilities, etc.

And, infrastructure is one of the top Trump administration priorities; the president elect has vowed to spend $1 trillion to make America’s crumbling infrastructure great again, and that is going to be very good for the master-limited partnerships in EMLP.

Plus, this fund is yielding nearly 4%, which represents an added bonus on top of its potential share price appreciation.

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