Yield vs. Consistency: The ETF Details

In recent years ETFs have become increasingly popular as a means of establishing cost efficient, low maintenance exposure to time-tested investment strategies. Russell recently rolled out a line of “investment discipline ETFs” that essentially automate the construction of portfolios consistent with various portfolio management techniques, including Growth at a Reasonable Price (GRPC), Contrarian (CNTR) and Low P/E (LWPE). It’s an advisor in an ETF wrapper, giving easy access to a number of different strategies. In addition to these precise equity offerings, there are several exchange-traded products that allow investors to focus on securities that meet certain dividend-related qualifications. With interest rates in many developed markets remaining at or near historic lows, interest in alternative sources of current return has spiked in recent years. That has taken yield-hungry investors in a number of different directions, with many embracing dividend-paying equities as a way to enhance a portfolio’s yield without taking on... Read more