Seeking Yield With Safety

Seeking AlphaPortfolio StrategySeeking Yield With SafetyOct. 12, 2020 8:16 AM ET|| Includes: ADVNX, ALSRX, BB, BBNIX, BME, BNDX, BSBAX, BTTRX, BUI, CLM, COTZX, DIAL, DODIX, DRSK, ETJ, EXCPX, FCDSX, FIXD, FNDSX, FNSOX, FSHBX, FSIGX, FTHRX, GPAIX, IAGG, ISTB, IUSB, JANFX, LASYX, MAPIX, MIN, MMIN, NIE, NUBD, NUV, NXR, OSTIX, PBDIX, PFFD, PREF, PRIPX, PRWBX, SCFTX, SCHZ, SPSB, SUBFX, SWAGX, SWLRX, SWSBX, TMSRX, TSI, VASIX, VBIIX, VBISX, VCOBX, VFSTX, VTABXby: Charles BolinCharles Bolin Medium-term horizon, Macro, portfolio strategy, ETF investingSummaryLipper categories with low risk and moderate to high yields are listed. Top-ranked funds within the categories are listed.
Over a thousand funds are ranked using Mutual Fund Observer Screens based on risk, risk-adjusted returns, quality, momentum and yield.
Top-ranked funds from Charles Schwab, Fidelity, and Vanguard are listed as well as other mutual fund families, exchange traded funds and closed end funds.
Funds with low risk and yields above 2% are highlighted.

Safe Yields by Lipper Category
Chart #1 shows Total Return for the past 12 months of funds in Lipper Categories versus risk as measured by the Ulcer Index which is based on the length and duration of drawdowns. Three clusters of categories can be seen. The upper leftmost cluster are those with low risk and higher returns. The size of the sphere is proportional to the yield. The lower left most cluster are those with lower returns and higher risk. The center cluster represents those with moderate risk and returns. What the chart shows is that most higher yielding funds have higher risk.
Figure #1: Seeking Yield with Low Risk
Source: Created by the Author Based on Mutual Fund Observer Screens
Table #1 contains the data used in Chart #1. All categories have at least 2% yield. The green area is the low risk categories with moderate 12-month returns. The yield divided by Ulcer Index represents the yield that an investor receives for the... Read more