Markets

Looking Into Highest-Yielding ETFs

Cinthia Murphy, Managing Editor, ETF.com

Investors seeking yield outside traditional bonds have a lot of choices in the ETF space. A look at the highest-yielding ETFs this year shows some funds are yielding more than 10% in some cases, and they include REIT funds as well as MLP and super-dividend ETFs.

“It goes without saying that these funds are much riskier than the average investment-grade bond fund,” ETF.com’s analyst Sumit Roy said. “Stretching for yield is just that—going further out on the risk spectrum to achieve higher distributions.”

The ETFs in this list of top yielders were picked based on the average dividend yield of their holdings as well as the funds' latest 30-day SEC yields.

Highest Yielding ETFs

Pot ETF Rising

On the performance front, in the month of August, the marijuana ETF was a top performer, climbing almost 30% in 30 days.

The ETFMG Alternative Harvest ETF (MJ) benefited from strong performance of its underlying holdings. (You can find individual stocks in any ETF in our ETF Stock Finder Tool). August was a busy month in the space, with major alcohol companies either buying into marijuana companies or saying they planned to do so.

While investors are taking notice, it remains to be seen whether MJ can keep up with this type of performance.

“The rapid-fire pace of acquisition and partnership announcements has buoyed marijuana stocks to astonishing heights this month,” said ETF.com’s senior writer Lara Crigger. “Ultimately, MJ's fate—and the fate of its underlying stocks—rests on legalization, still the biggest obstacle impeding growth of marijuana in the U.S.”

Source: StockCharts.com; data as of Aug. 28, 2018

More on ETF.com:

How To Buy A Bitcoin ETN

The ETF Rule: ETF.com's Comment Letter

ETF Of The Week: Fees Not Always Key

Live Chat: Bitcoin ETF Puzzle & Flash Crash Fixes

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ETFs

ETF.com

Founded in 2001, ETF.com is the world's leading authority on exchange-traded funds (ETFs). We deliver clear, independent and authoritative news, analysis and education about ETFs online at ETF.com and in print with ETF Report.

Learn More