Many of my favorite high-yield plays are exchange-traded funds (ETFs), which are becoming more and more popular among high-net-worth investors in particular. And it’s easy to see why — they offer dividends, liquidity and a professional money manager at the helm to do all the work of finding the right blend of holdings. Like a more conventional, open-ended mutual fund, these closed-end ETFs are made up of a basket of various securities — typically both stocks and bonds — that are carefully balanced to generate a certain targeted income. Because they often have hundreds of holdings in various sectors and asset classes, these funds make it much easier to diversify your portfolio.
ETF managers are drilling down into all of this for you. An investor’s only job is to do the homework and pick the best funds … and that’s where I come in. Here are my top two ETFs that income investors should purchase this week: Guggenheim Strategic Opportunities Fund (GOF) is a high-quality, diversified fund that maintains a large portfolio of asset-backed, corporate and fixed-rate loans offset by its largest holdings in the SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA), together making up 10% of the overall portfolio. My favorite precious metals and natural resources ETF, Gamco Global Gold Natural Resources & Income Trust (GGN), is trading today at $11 and sports a yield of 9.9% while trading at just a 3.3% premium to NAV.
Source: InvestorPlace
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