In an article for TheStreet, David Dierking discusses two ETFs offering investors weekly dividends. It’s an innovative offering by SoFi as most equities pay out dividends on a quarterly basis, while fixed income ETFs offer monthly payouts.
In contrast, the SoFi Weekly Dividend ETF (WKLY) and the SoFi Weekly Income ETF (TGIF) are structured to give investors a weekly payout. WKLY is made up of a blend of equities and fixed income. It invests primarily in dividend-paying companies with a market cap of over $1 billion. Some of its largest holdings include Exxon Mobil, Johnson & Johnson, and JPMorgan Chase. It pays out $0.02 per share on a weekly basis which is a 2.2% annual yield.
TGIF invests primarily in high-yield fixed income and is considered a bond ETF. It mostly invests in short and intermediate-term duration and also has an active management structure which gives it wider latitude to take advantage of opportunities in the credit space. It pays out $0.07 per share on a weekly basis and has an annualized yield of 3.8%. Since inception, it had one dividend hike from $0.05 per share to $0.07.
FinSum: SOFI has introduced an equity fund and fixed income fund which offers weekly dividends. Here are some important considerations.
- bonds
- ETFs
- fixed income
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