yield

ETF Battles: BND vs. TLT – Which Bond ETF is Better?

This is an excerpt of ETF Battles between TLT vs. BND on ETFguide TV – it’s a showdown between two ETFs focused on the U.S. bond market.  Who wins the battle? TLT and BND go against each other in key areas, including cost, performance and yield TLT is focused on long-dated U.S Treasuries, while BND covers …

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ETF Battles: NOBL vs. VYM – Which Dividend ETF is the Better Choice?

This is an excerpt of ETF Battles between NOBL vs. VYM – it’s a tussle between two dividend focused ETFs.  Who wins the battle? NOBL and VYM go against each other in key areas, including cost, yield and a mystery category Both funds own dividend stocks but with subtle and meaningful differences in strategy Both …

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Sexy vs. Boring: Who’s Winning?

Higher investment risk leads to higher investment returns, right? It’s a Wall Street axiom that we’ve heard so many times it’s become ingrained in us. But conventional wisdom and reality have the peculiar habit of departing from one another. And what’s happening in 2016 is a noteworthy example of this grand departure. With the year already …

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Why the Debt Ceiling Deadline Isn’t That Scary

On Oct. 15, the sitting U.S. Treasury Secretary Jack Lew sent his warning letter to Congress to increase the U.S. debt ceiling “or else.” Should bond investors be scared? Here’s an excerpt from Lew’s letter to Congress: “Based on our best and most recent information, we now estimate that extraordinary measures will be exhausted no later than …

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What’s Your Income Plan?

For just the fourth time in 50 years, the S&P 500’s (NYSEARCA:IVV) dividend yield was briefly more versus 10-year U.S. Treasuries (ChicagoOptions:^TNX). It’s another testament to the difficult climate facing bond investors (NYSEARCA:BOND) who want to generate a respectable level of income. For good reason, more people are employing alternative income strategies like selling covered calls. The covered call technique (also …

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Industry Sectors

A Boring Sector with Spectacular Results

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring,” observed George Soros. Which sector of the stock market fits that description? “Boring” is the one adjective that aptly describes the ho-hum utilities (NYSEARCA:XLU) sector. This particular segment of the stock market has been long associated with …

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One Trick Pony

Is Your Investment Portfolio a One-Trick Pony?

One-trick investment portfolios are everywhere.  Do you have one? What is a one-trick pony portfolio? It’s the kind of investment mix that is over-weighted or concentrated in one stock, one asset, or just one asset class.  This is a common condition with company founders who have the bulk of their net worth tied up in …

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Warren Buffett is Once Again Doing the Opposite of the Crowd

The disdain for cash is nearly universal. Cash instruments like money market funds are yielding around 0%. And nobody needs or wants cash because stocks are up. The S&P 500 (NYSEARCA:IVV) just rallied 3.8% in August, almost one-third its year-to-date (YTD) gain of 9.73%. AUDIO:  Listen to Ron DeLegge @ The Index Investing Show Performing …

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One Trick Pony

Portfolio Report Card: A $512,000 One-Trick Pony

Diversification means different things to different people. In some cultures, diversification means having large families to diversify so that when mom and dad get old, there will be plenty of children and grandchildren to care for them in their old age. For the individual investor, diversification boils down to spreading your risk across a variety …

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Boxer Vintage Mecca Card

Don’t Let the ‘Great Yield Slide’ Punch You in the Nose

At the beginning of the year, the yield on 10-Year U.S. Treasuries was just shy of 3% and appeared ready for takeoff into the stratosphere. Alas, the long-awaited period of runaway interest rates had arrived! The something weird happened. U.S. Treasury yields (ChicagoOptions:^TNX)– like a schizophrenic mad scientist straight out of the movies – suddenly …

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Portfolio diversification

3 Steps to Beating the Retirement Income Shortage

One definition of insanity is doing the same thing over and over while expecting a different result. This is an apt description of retirement income investors who definitely want and need more dividends, but are going about it in the wrong way. For bond investors (NYSEARCA:BOND), yields on 10-Year U.S. Treasuries (ChicagoOptions:^TNX) have slid almost …

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Beating the Dividend Income Drought

Will dividend yields test 1999 lows? That was the title of my post from a few weeks ago in which I explained to readers how the dividend income drought facing investors continues into 2014. Interestingly, the Federal Reserve’s initiation of ZIRP (zero interest rate policy) on Dec. 16, 2008 wasn’t the beginning of the bear …

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$17.41 Trillion in U.S. Debt, like Stocks, at Record Levels

The Russell 2000 small cap index (NYSEARCA:IWM) just made a new all-time high, but stocks aren’t the only thing topping. U.S. public debt is at record levels too and heading higher. Total outstanding public debt is now at $17.41 trillion, according to the U.S. Treasury Department’s latest daily statement. That’s almost $1 trillion over last …

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Will Dividend Yields Test ’99 Lows?

The past six years have been brutal for dividend and income investors. Zero percent interest rates have depressed bond yields (NYSEARCA:BOND) and with major stock indexes (^DJI) now trading at all-time highs, dividend yields relative to prices have fallen too. Last year, the number of S&P 500 (NYSEARCA:SPY) stocks paying a dividend touched a 17-year …

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Portfolio diversification

Are Covered Call Funds a Smart Income Play?

What’s better? A covered call options strategy executed by the individual investor or a covered call ETF or fund that proposes to do the heavy lifting? Selling covered calls is a popular investment technique used by investors with high income or cash flow as their primary goal. The investor is “covered” because they own the …

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