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

HEFA: ETF Inflow Alert
Wed, Jan 18, 11:14 AM ET, by ETF Channel

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

BSV: Large Inflows Detected at ETF
Wed, Jan 18, 11:14 AM ET, by ETF Channel

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

OIH, HAL, TS, NOV: ETF Outflow Alert
Wed, Jan 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: OIH, HAL, TS, NOV Exchange traded funds (ETFs) trade just ...

XLK, V, IBM, ORCL: Large Outflows Detected at ETF
Wed, Jan 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLK, V, IBM, ORCL Exchange traded funds (ETFs) trade just ...

IJH, WWAV, DRE, RMD: ETF Inflow Alert
Wed, Jan 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IJH, WWAV, DRE, RMD Exchange traded funds (ETFs) trade just ...

BLV: ETF Inflow Alert
Wed, Jan 18, 10:54 AM ET, by ETF Channel

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

VGK, TOT, BTI, RDS.B: ETF Outflow Alert
Wed, Jan 18, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VGK, TOT, BTI, RDS.B Exchange traded funds (ETFs) trade just ...

USMV, ADP, VZ, PEP: Large Outflows Detected at ETF
Wed, Jan 18, 10:54 AM ET, by ETF Channel

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

REET, SPG, PSA, PLD: Large Inflows Detected at ETF
Wed, Jan 18, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: REET, SPG, PSA, PLD Exchange traded funds (ETFs) trade just ...

CLX Crosses Above Average Analyst Target
Wed, Jan 18, 9:14 AM ET, by ETF Channel

In recent trading, shares of Clorox Co (CLX) have crossed above the average analyst 12-month ...

The Math Shows XSW Can Go To $62
Wed, Jan 18, 9:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied VUG Analyst Target Price: $126
Wed, Jan 18, 9:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Charter Communications Reaches Analyst Target Price
Wed, Jan 18, 9:14 AM ET, by ETF Channel

In recent trading, shares of Charter Communications Inc (CHTR) have crossed above the average analyst ...

TLP Crosses Above Average Analyst Target
Wed, Jan 18, 9:14 AM ET, by ETF Channel

In recent trading, shares of TransMontaigne Partners L.P. (TLP) have crossed above the average analyst ...

Pan American Silver Reaches Analyst Target Price
Wed, Jan 18, 9:14 AM ET, by ETF Channel

In recent trading, shares of Pan American Silver Corp. (PAAS) have crossed above the average ...

XPH's Holdings Imply 36% Gain Potential
Wed, Jan 18, 8:24 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Cisco Systems a Top Socially Responsible Dividend Stock With 3.5% Yield (CSCO)
Wed, Jan 18, 8:14 AM ET, by ETF Channel

Cisco Systems, Inc. (CSCO) has been named a Top Socially Responsible Dividend Stock by Dividend ...

VNQ, AVB, HCN, EQR: Large Inflows Detected at ETF
Tue, Jan 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VNQ, AVB, HCN, EQR Exchange traded funds (ETFs) trade just ...

12.7% of XOP Holdings Seeing Recent Insider Buys
Tue, Jan 17, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Oil & Gas Exploration ...

PEP Named A Top Socially Responsible Dividend Stock
Tue, Jan 17, 9:34 AM ET, by ETF Channel

PepsiCo Inc (PEP) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

FXO, SQ, CXW, OMF: Large Outflows Detected at ETF
Fri, Jan 13, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FXO, SQ, CXW, OMF Exchange traded funds (ETFs) trade just ...

DXJ: Large Inflows Detected at ETF
Fri, Jan 13, 10:54 AM ET, by ETF Channel

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

Vanguard Tax-Exempt Bond ETF Experiences Big Inflow
Fri, Jan 13, 10:54 AM ET, by ETF Channel

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

PBE's Underlying Holdings Could Mean 26% Gain Potential
Fri, Jan 13, 9:24 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

EXAS Crosses Above Average Analyst Target
Fri, Jan 13, 9:24 AM ET, by ETF Channel

In recent trading, shares of EXACT Sciences Corp. (EXAS) have crossed above the average analyst ...

First Business Financial Services Reaches Analyst Target Price
Fri, Jan 13, 8:54 AM ET, by ETF Channel

In recent trading, shares of First Business Financial Services, Inc. (FBIZ) have crossed above the ...

Berkshire Hathaway Moves Up In Analyst Rankings, Passing Twenty-First Century Fox
Thu, Jan 12, 12:14 PM ET, by ETF Channel

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

Russia ETF Experiences Big Inflow
Thu, Jan 12, 11:24 AM ET, by ETF Channel

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

IVV, INTC, SLB, HON: ETF Outflow Alert
Thu, Jan 12, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IVV, INTC, SLB, HON Exchange traded funds (ETFs) trade just ...

SLV: ETF Outflow Alert
Thu, Jan 12, 11:24 AM ET, by ETF Channel

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

XOP, WLL, PE, XEC: Large Outflows Detected at ETF
Thu, Jan 12, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: XOP, WLL, PE, XEC Exchange traded funds (ETFs) trade just ...

ITOT, MSFT, AMZN, JPM: ETF Inflow Alert
Thu, Jan 12, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: ITOT, MSFT, AMZN, JPM Exchange traded funds (ETFs) trade just ...

PRN, TDG, AOS, ODFL: ETF Outflow Alert
Thu, Jan 12, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PRN, TDG, AOS, ODFL Exchange traded funds (ETFs) trade just ...

ITT Crosses Above Average Analyst Target
Thu, Jan 12, 9:14 AM ET, by ETF Channel

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

ARMOUR Residential REIT Reaches Analyst Target Price
Thu, Jan 12, 9:14 AM ET, by ETF Channel

In recent trading, shares of ARMOUR Residential REIT Inc. (ARR) have crossed above the average ...

Molina Healthcare Reaches Analyst Target Price
Thu, Jan 12, 9:14 AM ET, by ETF Channel

In recent trading, shares of Molina Healthcare Inc (MOH) have crossed above the average analyst ...

TIER Crosses Above Average Analyst Target
Thu, Jan 12, 9:14 AM ET, by ETF Channel

In recent trading, shares of Tier REIT Inc (TIER) have crossed above the average analyst ...

Darden Restaurants Reaches Analyst Target Price
Thu, Jan 12, 9:14 AM ET, by ETF Channel

In recent trading, shares of Darden Restaurants, Inc. (DRI) have crossed above the average analyst ...

XLP's Underlying Holdings Imply 11% Gain Potential
Thu, Jan 12, 9:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

We Did The Math IBB Can Go To $352
Thu, Jan 12, 8:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

The Math Shows XWEB Can Go To $68
Thu, Jan 12, 8:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

KMX Crosses Above Average Analyst Target
Thu, Jan 12, 8:44 AM ET, by ETF Channel

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

KeyCorp Reaches Analyst Target Price
Thu, Jan 12, 8:44 AM ET, by ETF Channel

In recent trading, shares of KeyCorp (KEY) have crossed above the average analyst 12-month target ...

Add Up The Parts: VDC Could Be Worth $147
Thu, Jan 12, 8:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

PGJ's Underlying Holdings Could Mean 20% Gain Potential
Thu, Jan 12, 8:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

EV Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Thu, Jan 12, 8:14 AM ET, by ETF Channel

Eaton Vance Corp (EV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying ...

First Trust Preferred Securities and Income Breaks Above 200-Day Moving Average - Bullish for FPE
Wed, Jan 11, 4:24 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust Preferred Securities and Income ETF (FPE) ...

Starbucks Achieves #69 Analyst Rank, Surpassing Micron Technology
Wed, Jan 11, 12:14 PM ET, by ETF Channel

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

BIL: Large Inflows Detected at ETF
Wed, Jan 11, 11:14 AM ET, by ETF Channel

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

iShares Short Maturity Bond ETF Experiences Big Inflow
Wed, Jan 11, 11:14 AM ET, by ETF Channel

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

  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 - 2017, 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.