Jan 16
High Yield ETFs
Are you seeking to generate more income from your portfolio? If so, here are a few high dividend paying ETFs. Several of these ETFs come with a warning. Many have expense ratios. Pay attention to cost as it works against the investor over the long haul. Always do your own research as these ETFs are not necessarily my recommendations.
In the table, I included several ETFs one might normally hold in a well-diversified portfolio. Examples are: VTI, VTV, VOE, VBR, VWO, and VNQ. These were included to give some reference to the high dividend paying ETFs such as DVY, IDV, etc. The top six ETFs are considered to be high dividend paying ETFs, while the bottom six are more representative of individual asset classes.
The data found in this table comes from the ETF section of Seeking Alpha. The link will take you to the DVY ETF. Just type in your ETF of choice and you will find lots of information about that particular ETF. Yahoo Finance is another excellent source of information on ETFs.
High Yield ETFs
| ETF | Yield | Ex. Ratio |
|---|---|---|
| DVY | 3.87 | 0.40 |
| PID | 6.67 | 0.57 |
| DTD | 2.99 | 0.28 |
| HGI | 3.64 | 0.70 |
| IDV | 3.99 | 0.50 |
| CVY | 4.84 | 0.65 |
| VTI | 2.49 | 0.07 |
| VTV | 3.36 | 0.11 |
| VOE | 1.8 | 0.12 |
| VBR | 1.88 | 0.11 |
| VNQ | 5.24 | 0.12 |
| VWO | 1.3 | 0.25 |
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January 18th, 2010 at 2:53 am
This question concerns building tax effecient portfiolios in terms of asset location. I have tax exempt and tax deferred retirement accounts, as well as a taxable brokerage account.
So I am considering high yielding ETFs for the tax exempt account.
For the taxable account – the seeking alpha and yahoo sites provide information on the ETF’s dividend, and these would be taxable. How do I determine if there are other distributions from ETFs that would be subject to tax?? Is this mainly an issue of how often the ETF rebalances its holding and thereby generates capital gains?
January 18th, 2010 at 6:12 am
“So I am considering high yielding ETFs for the tax exempt account.
For the taxable account – the seeking alpha and yahoo sites provide information on the ETF’s dividend, and these would be taxable. How do I determine if there are other distributions from ETFs that would be subject to tax?? Is this mainly an issue of how often the ETF rebalances its holding and thereby generates capital gains?”
The rebalancing of individual ETFs has not posed a tax problem for me. One can expect to pay taxes on the dividends, but that is about it. As I recall, last year I paid capital gain taxes on only one ETF. ETFs are considered to be much more tax efficient than the standard index mutual funds. And much better than actively managed mutual funds.
Lowell