Advisers looking for an investment income stream for clients’ portfolios are typically interested in bonds and dividend-paying stocks.
Risk factors can vary widely, so focusing on the potential downside is as important (probably more important) as the potential upside.
This list of 20 mutual funds and ETFs has some broad-based offerings, yet also includes high-yield funds, hedged and leveraged mutual funds, any of which could be a tough fit with many portfolios.
As usual, we limited the list to funds with at least $100 million, since very small funds have an inherent liquidity risk. But it’s worth noting just how many small funds we screened out this time: 16. The 20th fund here would have been ranked 36th if we included any size.
To be sure, if we included all funds regardless of size, the fund atop the list would have been REX VolMAXX Short VIX (VMIN), an ETF based on market volatility. Its YTD dividend was 9.9%, but it had less than $23 million in assets.
All data from Morningstar.