3 Overseas Income ETFs To Boost Your Portfolio Yield
The search for yield has ETF income investors turning their focus away from high-priced U.S. assets to more attractive opportunities overseas.
International markets represent new areas for capital infusion that have yet to rise to the lofty valuations of their domestic counterparts.
However, striking the right mix of equity and fixed-income exposure can be a daunting task when confronted with hundreds of funds to choose from.
Fortunately, there are several lesser-known income ETFs that give you balanced exposure to a variety of global and international dividend plays.
The Arrow Dow Jones Global Yield ETF (NYSE: GYLD) provides equal weighted exposure to five separate asset classes that include: sovereign debt, corporate debt, equities, real estate, and alternative investments.
The 150 underlying U.S. and international income investments combine to produce a 30-day SEC yield of 5.86 percent. In addition, total assets in this ETF recently surpassed $150 million.
The primary driver of growth for GYLD in 2014 has been the accommodative interest rate environment spurring strong demand for high yield securities.
So far this year, GYLD has gained 9.03 percent with very little overall volatility.
Another interesting ETF in this space is the First Trust International Multi-Asset Diversified Income Fund (NASDAQ: YDIV). This fund is strictly dedicated to 125 overseas equities, preferred stocks, REITs, MLPs and fixed-income securities.
The current mix of assets is yielding 4.36 percent and dividends are paid monthly to shareholders.
Besides being a dedicated international fund, the primary differentiating factor of YDIV is a narrow focus on fixed-income and higher exposure to dividend paying equities and master limited partnerships.
If you are seeking an income ETF with zero bond exposure, the Guggenheim International Multi-Asset Income ETF (NYSE: HGI) is one to check out.
This fund is based on an index developed by Zacks Investment Research that is primarily focused on dividend paying stocks, global REITs, MLPs, and Canadian royalty trusts.
The yield of HGI is currently listed at 3.46 percent, which is the lowest of the group. However, the lack of fixed-income likely means this ETF will be less sensitive to changes in interest rates.
Each of these international funds offers a unique mix of assets that can provide a strong income stream and diversification outside of traditional U.S. investments.
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