Summer is here and the market is facing a possible
consolidation period with increased volatility. Investors are
probably considering new options for their portfolios.
Fortunately, there are a number of
that look well positioned to take advantage of the trends in the
market, and become key components during this uncertain time.
Bank Loan ETFs
In order to protect from higher interest rates, while still
obtaining decent yields, investors have been flocking to bank
loan ETFs. Bank loan ETFs provides a combination of current
income and floating rates which will prove to be the best
investment strategy whenever interest rates rise. (
3 Excellent ETFs for Income Investors
In this context,
PowerShares Senior Loan Portfolio (
has turned out to be one of the best selling ETF so far this
year. BKLN could prove to be the right choice for investors
looking for floating rate bonds to protect against rising
interest rates by taking higher credit risks.
BKLN has so far attracted $4.5 billion asset under management.
Apparently, the fund has been able to more than double its asset
base this year which also signifies how popular bank loans ETFs
have been in 2013.
BKLN trades at volume levels of more than 4 million shares a
day and charges investors 66 basis points in fee. The
distribution yield provided by the fund is quite impressive at
3 High Yield ETFs for Your IRA
This relatively new ETF focuses on the senior loan market,
which is a subset of the junk bond world. However, bonds in this
category are 'senior' to other types of debt, while they also use
LIBOR for their yields.
Investors usually look for fixed-rate bonds for inclusion in
their product portfolio. However, it should be noted that
fixed-rate bonds faces the risk of rising interest rates. In
order to curtail this risk, investors can include bank loan ETFs
in their portfolio.
Dividend ETF with Apple Exposure
Although Apple reported March quarter results mostly in line
with expectation; the most notable factor in the announcement was
an attempt to unlock shareholder value. (
ETFs to Watch After Apple Earnings
The company raised its limit for share buy back from $10
billion to $60 billion and increased its dividend 15% to
$3.05/shares. This made the company the highest dividend payer in
U.S. in cash terms.
In order to take advantage of this increase in dividend by the
company, investors have very few choices in their radar. Dividend
Vanguard Dividend Appreciation ETF (
SPDR S&P Dividend ETF (
although are quality ETF option in the space but they does not
have Apple in their portfolio.
So in order to take advantage of this increase in dividend by
the tech giant, investors should look to invest in
First Trust NASDAQ Technology Dividend Index Fund
TDIV focuses on technology companies that pay out dividends.
The fact that most dividend-heavy portfolios are extremely light
on technology firms suggests that this could be an interesting
complement to many portfolios.
This recently launched fund has $148.1 million asset under
management and appears to be least popular choice among investors
as indicated by its trading volume of 38,500 shares a day.
Apple occupies the fifth position in the fund and accounts for
7.2% of the asset base of the fund. The fund has a 30-Day SEC
Yield of 2.69%. The fund charges a fee of 50 basis points. Among
other individual holdings, Intel, Microsoft and Cisco enjoy the
first three positions in the fund. (
Buy these 3 ETFs for Execllent Dividend
Spin Profits with Spin-Off ETF
Research shows that spun-off entities generally outperform
their parents. One of the reasons could be that investors prefer
focused smaller focused companies compared with bigger
diversified ones. (Read:
Forget dividends, focus on buybacks
It is no surprise that this little known ETF--
Guggenheim Spin-Off ETF (
--that includes spun-off companies has been outperforming the
The product currently holds 27 securities in its basket, with
an average market cap of just $5.9 million.
The top holdings are Exelis Inc., Lumos Networks snd WPX
Energy. In terms of sector allocations, Energy (23.4%),
Industrials (20.9%) and Consumer Discretionary (20.4%) occupy the
top three spots.
The product charges an expense ratio of 60 basis points
annually. However investors should not that the volume is pretty
light-just about 5,000 shares per day, which may result in wider
CSD has outperformed the broader market significantly, with a
91% return over the past three years and 24% return year-to-date,
versus 56% and 12% respectively for SPY.
Despite outperformance, the fund has not been very popular
with investors and has managed to attract only $191 million is
assets so far.
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PWRSH-SNR LN PR (BKLN): ETF Research Reports
GUGG-SPIN-OFF (CSD): ETF Research Reports
FT-NDQ TECH DIF (TDIV): ETF Research Reports
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