5 Rules for Choosing High-Yield, Low-Volatility Income ETFs

The recent spike in oil prices has many investors believing that inflation is coming and the bond bubble has finally popped. However, investors should have a predetermined asset allocation strategy and re-balance their portfolio on a periodic basis, regardless of what's hot or not. ETFs give you an easy way to build a diversified portfolio. Below are 5 rules to select income ETFs without taking on too much risk or volatility: 1. Twelve-Month-Yield Greater Than 4.5%: With 10-year U.S. treasure at 3.5%, you want extra yield to compensate risk. 2. ETF’s Net Assets Greater than $400 Million: This is not a scientific number. I just like to select ETFs from the largest 200 ETFs. In general, ETFs with large net assets have high liquidity, low ask-bid spread and low fee. Below are 12 such ETFs based on the above 2 criteria. They are in 6 categories: Real Estate, High Yield,... Read more