5 Highest Yielding ETFs Of 2014

July 09, 2014

From REITs to precious metals to Brazilian equities, these ETFs may be diverse, but their yields are similarly stellar.

The hunt for yield lingers on, as investors still face a challenge finding it in traditional fixed-income markets. But there are plenty of other exchange-traded products serving up juicy yields, many in the double digits.

To be clear, these yields are cash dividends these ETFs return to investors, calculated as a percentage of share prices.

Of note, the highest-yielding strategy so far in 2014, using trailing 12 month yields, is a leveraged strategy—unsurprisingly, a REIT-focused one at that. The Etracs Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL) is shelling out a yield of 19.2 percent.

The UBS-backed ETN serves up exposure to a cap-weighted index of U.S. REITs as well as foreign REITs that derive at least 50 percent of their revenues from mortgage-related activity.

But we decided to exclude leveraged and inverse strategies from our pool. With that, we list here the five highest-yielding ETPs right now. (Data as of July 2.)

5. db X-trackers MSCI Brazil Hedged Equity ETF (DBBR | D-43)

DBBR is serving up a dividend yield of 12.3 percent.

While not the only ETF to offer access to the Brazilian equity market, it’s the only one to hedge against exposure to the Brazilian real—a feature that impacts the pattern of returns of the fund as the currency fluctuates against the dollar.

DBBR tracks a market-cap-weighted index of Brazilian firms covering the entire market-cap spectrum, hedging out currency exposure. Year-to-date, the fund has struggled to break to the upside, tallying losses of 4.7 percent.

DBBR_YTD_Perf

 

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