High Dividend ETF Under the Radar

Then 10-year Treasury is yielding 1.86%, well off the lows of last year, but still not enough for a large group of investors that are relying on regular dividends/interest payments.

There are a number of high-yielding stocks and ETFs available to investors and I regularly mention them in my blog posts. We also offer The ETF Bulletin newsletter that has an all-ETF Portfolio that yields over 6%!!

However, one ETF that is not currently in our Income ETF Portfolio is the ETRACS Wells Fargo Business Development Company ETN ($BDCS). The ETN tracks a portfolio of BDC's that will offer loans to small and mid-cap companies and may also take stakes in these companies. The loans are at a high interest rate often and if the value of the companies increase it could lead to profits for the BDC's.

$BDCS currently pays quarterly dividends and yields 7.3%. Not including the dividends, the ETN was up 23.5% in 2012, easily outpacing the overall market.

Investors that want to take substantial risk could look at the leveraged version of this ETN, $BDCL. The ETN was up 49% in 2012 and it currently has yield of 14.4%.

** For more info on High Yielding Investments please contact the office at info@pennfinancialgroup.com or 1-877-383-7366. We can build a portfolio tailored to your individual risk tolerance and goals.