Dividend Income ETFs ??

[birdman]

On behalf of a family member who needs income and has a good sized account...

Might consider parking 75% of those funds here https://www.synchronybank.com/banking/high-yield-savings/?gemid1=bankrate at 2.25% and then maybe use the remaining quarter on more speculative pursuits like ETF symbol DWT if oil exceeds $70 or $73.

Or if they really need the money, plow 100% into that and other places like it. Discover Bank, American Express and Ally Bank.

 

[murray t turtle]

Might consider parking 75% of those funds here https://www.synchronybank.com/banking/high-yield-savings/?gemid1=bankrate at 2.25% and then maybe use the remaining quarter on more speculative pursuits like ETF symbol DWT if oil exceeds $70 or $73.

Or if they really need the money, plow 100% into that and other places like it. Discover Bank, American Express and Ally Bank.

%% I like that ad, not the oil part ;
but the comps on that bank compared to big banks. Interesting pattern ;the bigger the bank the less interest they want to pay LOL

 

[birdman]

I'm with you Murray, oil part is risky. I use each of those 4 banks with good results. Easy peasy. I have bought some oil and nat gas etfs with success, but they are high risk and often go aganist me before they come back to profits.

 

[murray t turtle]

I'm with you Murray, oil part is risky. I use each of those 4 banks with good results. Easy peasy. I have bought some oil and nat gas etfs with success, but they are high risk and often go aganist me before they come back to profits.

%%
An elite trader asked how to trade NAt gas ETFs?? Said yes, not very often.LOL,

 

[Arnie Guitar]

What about Div ETF Fund diversity? Like anything else, you can own too many, having fund overlap with so many of them owning the same things, so much so that they'll move in unison. They're all fighting for your dollar, so it seems logical that they'll own the same things.
How many is too many?
The only thing I can see in owning several different Div ETFs is guarding against some internal problem within the fund...embezzlement, SEC violations or some other bizarre event...
So I'd say no more than 5, with 3 probably being adequate.

 

[projomni]

On behalf of a family member who needs income and has a good sized account, I'm looking for the first time at high dividend producing ETFs. (PGX, PFF, etc.)

(And considering protecting the market downside with some 3x inverse ETFs in the same sectors, in the hope of neutralizing market risk.)

I'd love to hear from anyone with experience playing in the dividend ETF space.

Cautions? Thoughts? Appreciated.

I put them side to side and think they are pretty similar: https://www.finstead.com/bot?s=pgx vs pff

Both seem like excellent choices. Huge return. Stellar dividend.

Caution: checked out the top holdings (https://www.finstead.com/bot?s=pgx holdings) and it seems like they are heavily bank-concentrated. Good banks though. PGX even more so. Which may spell trouble if banks start collapsing like in 2008.

The only part I don't understand is how you're protecting yourself with a 3X inverse... what about decay? Contango?

 

[zedDoubleNaught]

The problem I've found with 3x inverse ETFs is that they usually don't have a perfect 3x match. Usually they are close, but often my dividend payers will move up 2%, the inverse moves down 6.75%; the dividend payers move down 2%, then inverse goes up 5%. Sometimes they both go down together. Even if just 1 day a week, it is enough to ruin the strategy. It takes some work to find an inverse with a perfect negative correlation to dividend payers.

 

[Cabin111]

These are closed end funds...More expenses, but great steady income (in good years and bad). The Royce Family of funds...RVT, RMT, RGT. Worth checking into...They find undervalued boring companies that make money. A few years ago RGT #1 company was a German box maker...Talk about boring!! But RVT #1 company was a heart stent maker...Doctors were going away from heart bypasses and more toward stents. RVT did really well from that kind of knowledge...