Looking for Yield: Notes From Morningstar's ETF Conference

Looking For Yield In the "Looking for Yield" panel at the Morningstar ETF Invest conference, panelists got to hear from Fran Kinniry from Vanguard, Ed McRedmond from PowerShares, and Don Suskind from PIMCO. Today's clients are fixated on the need to find yield-producing funds for their portfolios. The panel focused on how the different strategies used by their firms can help advisors find that yield in a low-cost, diversified ETF product. Fran Kinniry As a firm, Vanguard believes that equities offer better opportunities for investors than low-yield government and corporate bonds. There, outlook for equities is for returns in the 9%-10% range and aggregate bond returns in the 2%-3% range. Kinniry is skeptical of portfolios that focus too much on yield and give up diversification in the process. There are many dividend-focused ETFs, and he feels that the extra yield is not worth the increased sector risk you are taking.... Read more