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A Safe ETF With a 5%-Plus Yield

By: Sam Collins
Posted: 8/1/2011 12:59:00 AM
Referenced Stocks: FAX

Aberdeen Asia-Pacific Income Fund (AMEX: FAX ) - The Australian dollar is usually bought when traders are optimistic about global stocks and commodities. This fund holds both Asian and Australian debt securities, but currently invests over 80% in Asian debt securities. The dividend yield is 5.5%.

Note the strong buy from the stochastic indicator in mid-June, which preceded the run from $7.20 to over $7.80. The smallU.S.holdings make this ETF an excellent hedge against a further decline in the U.S. dollar. The recent pullback offers investors an attractive opportunity in an uncertain investment world. The target for FAX is $9 before the end of this year.

Trade of the Day -- Aberdeen Asia-Pacific Income Fund (AMEX:FAX)

Trade of the Day Chart Key

See Sam Collins' Daily Market Outlook: Go Against the Crowd of Sellers See Serge Berger's Daily Market Outlook: Why You May Want to Wait to Go Long See See Serge Berger's Trade of the Day: Regal Entertainment Stock Could Be a Hit

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