Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

5 High Yield, Low Volatility ETF Plays

Tue, Nov 20, 9:15 AM ET, by Michael Johnston

Of course, many high yielding asset classes come with considerable risk, and considering only the return opportunity could be a foolish move in the current environment. To put all the high yielding opportunities out there on equal footing, we compared both distribution yield over the past 12 months and volatility during the past 200 trading days — rough approximations for return and risk profiles [Download How to Pick The Right ETF Every Time].

Specifically, we:

  1. Took approximately 80 ETFs (and ETNs) from high yielding asset classes, including dividend paying stocks, junk bonds, MLPs, and preferred stocks
  2. Used the ETF Analyzer to generate 12 month dividend yield and 200 day volatility for each
  3. Calculated dividend yield as a percentage of volatility–basically, the yield offered relative to the risk incurred

The results were all over the board, as can be expected in a somewhat turbulent environment (it should be noted that these figures change daily, and are inherently backward looking). But some interesting trends emerged from this analysis, highlighting a few ETFs that offer up attractive yields relative to the volatility (i.e., risk) they come with [see also Monthly Dividend ETFdb Portfolio].

1. SPDR Wells Fargo Preferred Stock ETF (PSK)

Preferred stock jumped out as the clear winners from this exercise; these securities don’t offer the highest yields out there by any measure, but they make relatively attractive payouts without exposing investors to significant volatility. In terms of getting the most dividend bang for your volatility buck, preferred stock ETFs stand head and shoulders above the competition right now [see Hunt For Yield: How Do All The High-Yielding ETFs Stack Up].

PSK isn’t the most popular preferred stock ETF, but stands out as an opportunity with a meaty yield with limited downside:

  • 12-Month Dividend Yield: 6.4%
  • 200 Day Volatility: 3.8%
  • YTD Return: 12.7%

There are a handful of additional preferred stock ETFs making attractive payouts with very low volatility now, including PFF and PGX.

2. PowerShares High Dividend Yield Financial Portfolio (KBWD)

You may be surprised to see a financial ETF on this list given the reputation for volatility in this sector. But KBWD has been producing pretty solid returns and offering up a hefty dividend yield while exhibiting relatively low volatility recently [see Financials Free ETFdb Portfolio].

  • 12-Month Dividend Yield: 10.9%
  • 200 Day Volatility: 12.6%
  • YTD Return: 9.8%

3. iShares FTSE NAREIT Mortgage REITs Index Fund (REM)

Mortgage REITs can be extremely risky propositions, given their use of leverage to achieve exposure to mortgages. But this corner of the REIT market offers a huge yield in the current environment, and has been able to do so without experiencing significant volatility.

  • 12-Month Dividend Yield: 10.6%
  • 200 Day Volatility: 15.1%
  • YTD Return: 20.0%

Market Vectors offers a similar ETF, MORT, that has similarly produced a solid dividend yield with relatively low volatility recently.

4. Global X SuperDividend ETF (SDIV)

For investors looking to pick out the highest yielding stocks from around the globe, SDIV could be an interesting option. The underlying portfolio consists of 100 high yielding stocks, each weighted at 1%. The result is a high basket with an aggregate distribution yield in the neighborhood of 8%. Though this approach has the potential to expose investors to more speculative companies, the risk has been relatively low over the past year given the hefty yield opportunity [see also Inside The SuperDividend ETF: Q&A With Bruno del Ama].

  • 12-Month Dividend Yield: 7.8%
  • 200 Day Volatility: 12.7%
  • YTD Return: 8.1%

5. Cushing MLP High Income Index ETN (MLPY)

It’s probably no surprise that MLPs are on this list; these energy-related entities are a source of attractive payouts thanks to unique tax incentives, and maintain relatively stable operations that limit volatility (though they endured a steep post-election sell-off). There are a handful of MLP ETFs and ETNs available (the distinction is an important one in this case) that offer yields in excess of 6%–a pretty good haul right now. MLPY, as the name suggests, offers one of the higher payout ratios among MLPs. And it manages to do so without an overwhelming amount of risk [see our Energy Bull ETFdb Portfolio].

  • 12-Month Dividend Yield: 7.9%
  • 200 Day Volatility: 13.2%
  • YTD Return: 0.7%

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.


SDI Glossary: "Dividend" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "iShares" Definition
SDI Glossary: "Mortgage REIT" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Yield" Definition
This Article's Word Cloud:   Dividend   ETFdb   ETFs   ETNs   High   KBWD   MLPs   Month   Portfolio   Preferred   Return   There   Volatility   Yield   attractive   been   dividend   environment   from   given   high   including   interesting   investors   list   offer   offers   opportunity   over   past   payouts   preferred   pretty   recently   relatively   risk   solid   stock   stocks   that   there   these   they   this   volatility   with   without   yield   yielding   yields

| More

Vanguard FTSE Europe Breaks Above 200-Day Moving Average - Bullish for VGK
Fri, Feb 27, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Vanguard FTSE Europe ETF (VGK) crossed above their ...

DWM Crosses Above Key Moving Average Level
Fri, Feb 27, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the WisdomTree DEFA Fund ETF (DWM) crossed above their ...

Capital One Financial Moves Up In Analyst Rankings, Passing PerkinElmer
Fri, Feb 27, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

JNK: Large Inflows Detected at ETF
Fri, Feb 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: JNK Exchange traded funds (ETFs) trade just like stocks, but ...

IYT, FDX, UNP, KSU: Large Outflows Detected at ETF
Fri, Feb 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYT, FDX, UNP, KSU Exchange traded funds (ETFs) trade just ...

UST: Large Outflows Detected at ETF
Fri, Feb 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: UST Exchange traded funds (ETFs) trade just like stocks, but ...

RSX, YNDX, VIP, CTCM: ETF Inflow Alert
Fri, Feb 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: RSX, YNDX, VIP, CTCM Exchange traded funds (ETFs) trade just ...

FBT, ICPT, NVAX, PCYC: ETF Inflow Alert
Fri, Feb 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FBT, ICPT, NVAX, PCYC Exchange traded funds (ETFs) trade just ...

IEV: Large Outflows Detected at ETF
Fri, Feb 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IEV Exchange traded funds (ETFs) trade just like stocks, but ...

Lockheed Martin a Top 25 Dividend Giant With $2.49B Held By ETFs
Fri, Feb 27, 10:14 AM ET, by ETF Channel

Lockheed Martin Corp. (LMT) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Eversource Energy Named A Top Socially Responsible Dividend Stock
Fri, Feb 27, 10:14 AM ET, by ETF Channel

Eversource Energy (ES) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

PowerShares DWA SmallCap Momentum Portfolio -- Insider Buying Index Registering 10.2%
Fri, Feb 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the PowerShares DWA SmallCap Momentum Portfolio (DWAS) ...

12.7% of DIV Holdings Seeing Recent Insider Buys
Fri, Feb 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SuperDividend U.S. ETF (DIV) shows an ...

IXP Crosses Above Key Moving Average Level
Thu, Feb 26, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares Global Telecom ETF (IXP) crossed above their ...

Tractor Supply Achieves #96 Analyst Rank, Surpassing TE Connectivity
Thu, Feb 26, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Vanguard Value ETF Experiences Big Inflow
Thu, Feb 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VTV Exchange traded funds (ETFs) trade just like stocks, but ...

VEA, KOSS, MFD, EZCH: ETF Inflow Alert
Thu, Feb 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VEA, KOSS, MFD, EZCH Exchange traded funds (ETFs) trade just ...

UPRO, ACT, ADBE, ADT: Large Outflows Detected at ETF
Thu, Feb 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: UPRO, ACT, ADBE, ADT Exchange traded funds (ETFs) trade just ...

TQQQ, ATVI, AKAM, ALXN: ETF Outflow Alert
Thu, Feb 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: TQQQ, ATVI, AKAM, ALXN Exchange traded funds (ETFs) trade just ...

IEI: ETF Outflow Alert
Thu, Feb 26, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IEI Exchange traded funds (ETFs) trade just like stocks, but ...

IRV Makes Bullish Cross Above Critical Moving Average
Thu, Feb 26, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P International Materials Sector ETF (IRV) crossed ...

18.5% of XBI Holdings Seeing Recent Insider Buys
Thu, Feb 26, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Biotech ETF (XBI) shows ...

Why Cincinnati Financial is a Top 25 SAFE Dividend Stock (CINF)
Thu, Feb 26, 8:14 AM ET, by ETF Channel

Cincinnati Financial Corp. (CINF) has been named to the Dividend Channel ''S.A.F.E. ...

NextEra Energy a Top 25 Dividend Giant With 2.97% Yield (NEE)
Thu, Feb 26, 8:14 AM ET, by ETF Channel

NextEra Energy Inc (NEE) has been named as a Top 25 ''Dividend Giant'' by ETF ...

EGRW Makes Bullish Cross Above Critical Moving Average
Wed, Feb 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Emerging Markets Growth ETF (EGRW) crossed ...

MSCI Argentina Breaks Above 200-Day Moving Average - Bullish for ARGT
Wed, Feb 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the MSCI Argentina ETF (ARGT) crossed above their 200 ...

GWL Crosses Above Key Moving Average Level
Wed, Feb 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR S&P World ex-US ETF (GWL) crossed above ...

See How AT&T Ranks Among Analysts' Top Dow 30 Picks
Wed, Feb 25, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that AT&T Inc (T) is ...

Vanguard Dividend Appreciation ETF Experiences Big Outflow
Wed, Feb 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VIG, OXY, EOG, EMR Exchange traded funds (ETFs) trade just ...

XLE, XOM, CVX, SLB: ETF Inflow Alert
Wed, Feb 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: XLE, XOM, CVX, SLB Exchange traded funds (ETFs) trade just ...

Utilities Select Sector SPDR Fund Experiences Big Outflow
Wed, Feb 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: XLU, DUK, NEE, SO Exchange traded funds (ETFs) trade just ...

LQD: Large Inflows Detected at ETF
Wed, Feb 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: LQD Exchange traded funds (ETFs) trade just like stocks, but ...

MXI Makes Bullish Cross Above Critical Moving Average
Wed, Feb 25, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Global Materials ETF (MXI) crossed above their ...

VO: Large Inflows Detected at ETF
Wed, Feb 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VO Exchange traded funds (ETFs) trade just like stocks, but ...

iShares Short Treasury Bond ETF Experiences Big Inflow
Wed, Feb 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SHV Exchange traded funds (ETFs) trade just like stocks, but ...

Why Analog Devices is a Top Socially Responsible Dividend Stock (ADI)
Wed, Feb 25, 8:14 AM ET, by ETF Channel

Analog Devices, Inc. (ADI) has been named a Top Socially Responsible Dividend Stock by Dividend ...

Home Depot Inc a Top 25 Dividend Giant With 2.02% Yield (HD)
Wed, Feb 25, 8:14 AM ET, by ETF Channel

Home Depot Inc (HD) has been named as a Top 25 ''Dividend Giant'' by ETF ...

ALB Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Wed, Feb 25, 8:14 AM ET, by ETF Channel

Albemarle Corp. (ALB) has been named to the Dividend Channel ''S.A.F.E. ...

PIE Crosses Above Key Moving Average Level
Tue, Feb 24, 4:34 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DWA Emerging Markets Momentum Portfolio ETF (PIE) ...

FDD Makes Bullish Cross Above Critical Moving Average
Tue, Feb 24, 4:34 PM ET, by ETF Channel

In trading on Tuesday, shares of the First Trust STOXX European Select Dividend Index Fund ...

Celgene Achieves #40 Analyst Rank, Surpassing American Tower
Tue, Feb 24, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

SCPB Crosses Above Key Moving Average Level
Tue, Feb 24, 11:34 AM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR Barclays Short Term Corporate Bond ETF (SCPB) ...

iShares Global Clean Energy (ICLN) Shares Cross Above 200 DMA
Tue, Feb 24, 11:34 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Global Clean Energy ETF (ICLN) crossed above ...

VDE, KMI.WS, APC, PSX: ETF Inflow Alert
Tue, Feb 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, KMI.WS, APC, PSX Exchange traded funds (ETFs) trade just ...

Sempra Energy a Top Socially Responsible Dividend Stock With 2.5% Yield (SRE)
Tue, Feb 24, 8:14 AM ET, by ETF Channel

Sempra Energy (SRE) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

Why United Bankshares is a Top 25 SAFE Dividend Stock (UBSI)
Tue, Feb 24, 8:14 AM ET, by ETF Channel

United Bankshares, Inc. (UBSI) has been named to the Dividend Channel ''S.A.F.E. ...

Why Altria Group is a Top 25 Dividend Giant (MO)
Tue, Feb 24, 8:14 AM ET, by ETF Channel

Altria Group Inc (MO) has been named as a Top 25 ''Dividend Giant'' by ETF ...

See How Microsoft Ranks Among Analysts' Top Dow 30 Picks
Mon, Feb 23, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Microsoft Corporation (MSFT) is ...

Union Pacific Achieves #32 Analyst Rank, Surpassing Western Digital
Mon, Feb 23, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

SCC Crowded With Sellers
Mon, Feb 23, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the ProShares UltraShort Consumer Services ETF (SCC) entered into ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

5 High Yield, Low Volatility ETF Plays | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.