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

Allergan Moves Up In Analyst Rankings, Passing Ryder System
Mon, Aug 29, 11:54 AM ET, by ETF Channel

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

USMV, GIS, PAYX, PEP: Large Outflows Detected at ETF
Mon, Aug 29, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: USMV, GIS, PAYX, PEP Exchange traded funds (ETFs) trade just ...

JDST: ETF Outflow Alert
Mon, Aug 29, 10:54 AM ET, by ETF Channel

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

TOK, PFE, MRK, INTC: Large Outflows Detected at ETF
Mon, Aug 29, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: TOK, PFE, MRK, INTC Exchange traded funds (ETFs) trade just ...

ProShares Short High Yield Experiences Big Inflow
Mon, Aug 29, 10:54 AM ET, by ETF Channel

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

SH: ETF Inflow Alert
Mon, Aug 29, 10:54 AM ET, by ETF Channel

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

XLY, CMCSA, SBUX, NKE: ETF Outflow Alert
Mon, Aug 29, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLY, CMCSA, SBUX, NKE Exchange traded funds (ETFs) trade just ...

GRUB Crosses Above Average Analyst Target
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of GrubHub Inc (GRUB) have crossed above the average analyst 12-month ...

Boot Barn Holdings Reaches Analyst Target Price
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of Boot Barn Holdings Inc (BOOT) have crossed above the average ...

Neogen Reaches Analyst Target Price
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of Neogen Corp. (NEOG) have crossed above the average analyst 12-month ...

PUB Crosses Above Average Analyst Target
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of People's Utah Bancorp (PUB) have crossed above the average analyst ...

INVA Crosses Above Average Analyst Target
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of Innoviva Inc (INVA) have crossed above the average analyst 12-month ...

BPFH Crosses Above Average Analyst Target
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of Boston Private Financial Holdings, Inc. (BPFH) have crossed above the ...

TerraForm Global Reaches Analyst Target Price
Mon, Aug 29, 8:14 AM ET, by ETF Channel

In recent trading, shares of TerraForm Global Inc (GLBL) have crossed above the average analyst ...

FXU Crowded With Sellers
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust Utilities AlphaDEX Fund ETF (FXU) entered ...

Guggenheim S&P 500 Equal Weight Utilities Getting Very Oversold
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim S&P 500 Equal Weight Utilities ETF (RYU) ...

iShares MSCI Frontier 100 Getting Very Oversold
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Frontier 100 ETF (FM) entered into ...

Shares of VOX Now Oversold
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Telecommunication Services ETF (VOX) entered into oversold ...

Alphabet Takes Over #13 Spot From American Tower
Fri, Aug 26, 11:54 AM ET, by ETF Channel

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

DUST: Large Outflows Detected at ETF
Fri, Aug 26, 11:14 AM ET, by ETF Channel

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

EWM Makes Bullish Cross Above Critical Moving Average
Fri, Aug 26, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Malaysia ETF (EWM) crossed above their ...

XLK, ACN, AVGO, EMC: Large Inflows Detected at ETF
Fri, Aug 26, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLK, ACN, AVGO, EMC Exchange traded funds (ETFs) trade just ...

GUESS ? Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of GUESS ?, Inc. (GES) have crossed above the average analyst ...

CLI Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Mack Cali Realty Corp (CLI) have crossed above the average ...

CTL Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of CenturyLink, Inc. (CTL) have crossed above the average analyst 12-month ...

BURL Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Burlington Stores Inc (BURL) have crossed above the average analyst ...

Welltower Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Welltower Inc (HCN) have crossed above the average analyst 12-month ...

HURN Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Huron Consulting Group Inc (HURN) have crossed above the average ...

Craft Brew Alliance Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Craft Brew Alliance Inc (BREW) have crossed above the average ...

Exa Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Exa Corp (EXA) have crossed above the average analyst 12-month ...

KTOS Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Kratos Defense & Security Solutions, Inc. (KTOS) have crossed above ...

PVTB Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of PrivateBancorp Inc (PVTB) have crossed above the average analyst 12-month ...

iShares Nasdaq Biotechnology Breaks Below 200-Day Moving Average - Notable for IBB
Thu, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares Nasdaq Biotechnology ETF (IBB) crossed below their ...

IHF Makes Notable Cross Below Critical Moving Average
Thu, Aug 25, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Healthcare Providers ETF (IHF) crossed below ...

Vertex Pharmaceuticals Takes Over #81 Spot From Starbucks
Thu, Aug 25, 1:34 PM ET, by ETF Channel

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

PUI, SCG, WEC, SRE: Large Outflows Detected at ETF
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PUI, SCG, WEC, SRE Exchange traded funds (ETFs) trade just ...

iShares MSCI Italy Capped ETF Experiences Big Outflow
Thu, Aug 25, 11:14 AM ET, by ETF Channel

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

IVE, T, PG, CSCO: Large Outflows Detected at ETF
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVE, T, PG, CSCO Exchange traded funds (ETFs) trade just ...

SVXY: ETF Outflow Alert
Thu, Aug 25, 11:14 AM ET, by ETF Channel

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

EBND: ETF Outflow Alert
Thu, Aug 25, 11:14 AM ET, by ETF Channel

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

VEA: Large Inflows Detected at ETF
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

NOBL, CTAS, HRL, GWW: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: NOBL, CTAS, HRL, GWW Exchange traded funds (ETFs) trade just ...

TZA: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

Vanguard Mid-Cap Value ETF Experiences Big Inflow
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

UVXY: Large Inflows Detected at ETF
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

XHS, ABC, WOOF, MOH: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XHS, ABC, WOOF, MOH Exchange traded funds (ETFs) trade just ...

SQQQ: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

The DO Paradox: Analysts Bearish But Forecast 12.1% Gains
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

The ESV Paradox: Analysts Bearish But Forecast 14.25% Gains
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

KFRC Crosses Above Average Analyst Target
Thu, Aug 25, 8:14 AM ET, by ETF Channel

In recent trading, shares of Kforce Inc. (KFRC) have crossed above the average analyst 12-month ...

  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 - 2016, 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 serious 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.