Two High Dividend ETFs to Watch

Nearly everyone loves ETFs and stocks that pay big dividends, but they also want the ability to join in a market rally and capital appreciation.

It is not easy to find the combination of high income and capital appreciation in a low yield environment like we have today, but it is possible. I am going to share 2 ETFs with you that fall into that category.

• E-Tracs Business Development Company ETN ($BDCS) - A basket of 28 stocks that will lend to small and medium sized private companies at above-average interest rates. They may also take stakes in the companies they lend to from time to time. The current yield on the ETN is 7.4%, which is very attractive and it was able to gain 23.6% in 2012, easily beating the S&P 500.
• IQ US Real Estate Small Cap ETF ($ROOF) - A basket of 48 real estate investment trusts (REITs) that give investors exposure to the small-cap portion of the sector. The current yield is 6.5% and in 2012 the ETF was up a whopping 30%.

The ETF and ETN above are just 2 examples that investors have to consider when considering high income and capital appreciation. If this niche sector of investing interests you please contact Penn Financial Group via email (info@pennfinancialgroup.com) or (877-383-7366) for more information on our ETF newsletters and money management services.