Top 4 Income ETFs And The Best Way To Buy Them

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Over the last couple of years, I’ve added select exchange-traded funds (ETFs) to my Dividend Hunter recommendations list.

That’s a big change from the past. Historically, my recommendations had focused on individual stocks, but as time passes, new opportunities arise.

My short list of high-yield ETFs within the broader Dividend Hunter list currently provides tremendous potential for investors looking to build both wealth and income.

So let’s take a look at four of them – and the best way to invest in them…

One strategy I recommend is to invest in these funds, put the dividends on automatic reinvestment, and let the positions build through the ups and downs of the market. All the funds I use pay monthly dividends, so with dividend reinvestment, additions occur every month.

Currently, I recommend five of these high-yield funds. There are several more on my watchlist. Each employs a different strategy to generate what turns out to be a similar dividend yield. I am curious which will provide better performance over the next two the three years.

Recently, I invested an equal dollar amount in a separate brokerage account in eight different monthly dividend, high-yield ETFs. This is real money investing, and I look forward to watching how the account grows.

One feature I liked was the ability to invest in several of the funds by dollar amount instead of by whole shares. These four funds let me just put in the dollars I wanted to invest:

  • InfraCap MLP ETF (AMZA)
  • JP Morgan Equity Premium Income ETF (JEPI)
  • Virtus InfraCap U.S. Preferred Stock ETF (PFFA)
  • Global X NASDAQ Covered Call ETF (QYLD)

For the other funds, I had to invest in whole shares. I expect the investment by dollar amount feature to expand to more ETFs. As a final note, dividend growth and high-yield-focused strategies have performed very well through the early weeks of 2022. Each of these funds has outperformed the major market indexes. 

Traditional brokers don’t make it easy for investors to get in on the Next Big Thing...

Or on the best income stock.

They make you work to find the right stocks or ETFs on your own…

Take the time and effort to research and analyze each one, and pay for access to top-notch research…

Decide how best to allocate your money between the stocks…

All the while “holding your nose” over the huge fees they’re likely to charge you…

And manage and rebalance the portfolio all by yourself.

Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

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