hi I'm Jimmy in this video I'm gonna walk through five of my favorite high
yielding dividend ETFs that pay a monthly dividend now this video is
actually the second video where I look at monthly dividend ETFs in the last
video I focused on larger ETFs in that they had more money in them and that
they also tended to pay a slightly lower dividend yield call it three to five or
six percent I've got a link in the description below if you're curious but
for this video I'm actually looking for higher yielding ETFs call it a minimum
of 5% ideally get us closer to 10% now there's a couple of warnings that I
think are important to consider with smaller ETFs or even very high yielding
dividend ETFs and that is first that oftentimes these types of ETFs come with
higher fees and of course none of us want to pay higher fees and personally
I'm okay with the fee generally if it's not too high as long as that
particularly ETF brings something unique to our portfolio now given a choice of
two of the similar ETFs I think it makes sense to choose the one with lower with
a lower fee that being said if you happen to know of any monthly dividend
ETFs that are similar to any of the monthly dividend ETF that I talked about
here but they have better fees please let us all know in the comments below
and the second thing to be aware of is that sometimes smaller funds get shut
down since the fund manager makes their money based on the fee that they charge
and how much assets they have in that fund some fund managers may choose to
close smaller funds so we should be aware that that's it's always possible
that that type of thing happens when we're looking at smaller ETFs or smaller
index funds or whatever it might be now if that does happen it's not the worst
thing in the world since they would just liquidate the fund and we should get our
fair value returned to us so that fair value is likely to be very close to the
price of the ETF at that time so whatever the price is they're gonna
liquidate that we're gonna get our that money returned to us as if we sold the
ETF okay let's jump into our first monthly dividend ETF high dividend ETF
first up we have the high-yield ETF ticker symbol HYLD they have a dividend yield
of a bit over seven percent they've about 125 million dollars in assets and
if they charge a higher fee of about 118 basis points now this is a high fee in
fact this is the highest fee on our list that's why I'm starting with them
now what this ETF does is they invest in high-yield bonds in fact this is a list
of their top holdings and just so we're all on the same page here's how we can
read this sort of descriptor so le e is the ticker symbol of the company that
issued this bond in this case it's Lee enterprises this company pays a nine and
a half percent coupon yield and they mature in 2022
then over here the two point one percent well that's simply saying that for this
ETF well this particular holding represents two point one percent of the
overall portfolio now for curious HYLD has about a hundred eighty or so
holdings within the portfolio and like I said they pay a decent dividend yield of
a bit over seven percent which is why we might be willing to tolerate the higher
expense ratio and when we look at their dividend history what we can see it's
been fairly consistent and over the past few over the past few months they've
consistently kept it at about 20 cents per month so I think that this type of
bond ETF could be a good diversify from many of our portfolios now if this thing
is too much for us and in some people's mind is very well could be well for that
we have the next monthly dividend ETF which is called the iShares broad
high-yield corporate bond etf ticker symbol USHY they have a dividend
yield of about 5.8 percent they have about four point six billion dollars in
assets and they have a fee of just 22 basis points now this ETF has a similar
style of investments except when we look at their top holdings well here we could
sit they top the target slightly lower paying bonds you can sort of see that
when we run down the line here so it sort of makes sense that they would have
a dividend yield in the six percent range and we look at their dividend
history well once again we can see that it's been fairly consistent now this is
the reason that I included both this ETF and the last ETF is because they're both
doing similar things except we have this one with 5.8% in
yield and then the last one which has a higher dividend yield so depending on
what we're after with the dividend yield we might be willing to accept a higher
fee if perhaps were in a situation where we need a higher dividend yield so that
both going after bonds which I think broadly speaking belong in a lot of
people's portfolio okay up next we have the global X super dividend emerging
markets ETF ticker symbol SDEM and as we might guess this monthly dividend ETF
focuses on stocks from the emerging markets they have a 7% dividend yield
and they have about twenty million dollars in assets which is low but like
I said not too concerned about it at this point simply because if global X
opted to shut down this fund well they would essentially just sell the
underlying holdings and we would get the value of those shares back to us but if
that's a concern for some investors I completely understand and in that case
we should skip over this one but for those that are curious this is what
their dividend history looks like and as we could see it's been fairly consistent
which is a good thing for us dividend investors okay up next we have another
global X monthly dividend ETF they do a lot of them but this time we're looking
at their REIT ETF. REIT, R E I T is short for real estate investment trusts their
ticker symbol is SRET they have a didn't yield of a bit less than 8% they
have about 540 million dollars in assets and they have an expense ratio of about
59 basis points and as we might have guessed they invest in REITs and these
are some of their top holdings right here and these REITs have some tax
advantages all REITs have some tax advantages that generally allow for them
to pay higher dividend yields essentially they don't pay corporate
income taxes as long as they pay out most of their profits in the form of
dividends so you end up with a very high dividend yielding ETF which helps
explain they're almost eight percent dividend yield and when we look at their
dividend history while we can once again see that they've been fairly consistent
swinging ever-so-slightly around the $0.10 per month mark okay next up we
have the global X Nasdaq 100 covered call ETF ticker symbol QYLD
as we can see like I said global X really focuses on monthly dividend ETFs
they have an impressive dividend yield of about nine point eight percent they
have about a billion dollars in assets and they charge an expense ratio of
about sixty basis points some of their largest holdings our companies like
Apple Microsoft Amazon alphabet now you may notice that they actually have an
alphabet here twice and that's because this ETF owns both Class A shares and
Class C shares okay now the way that this ETF is able to pay
such a high dividend yield is because they sell call options on the shares of
the stocks that they own so they buy these top companies and they sell
covered calls on them and as we could see with their dividend history well
it's been fairly consistent for the past few years and the good news is that even
if the price of some of these companies were to fall well it's possible that the
portfolio managers are able to generate consistent consistent dividend like
income by selling covered calls that's why some investors really really like
covered selling covered calls because it allows you to sort of generate extra
income which in this case produces a much higher dividend yield so even if
some of these stocks don't pay dividends at all while global X is essentially
able to manufacture dividend like income by selling covered calls the flip side
of cover calls the negative side to it is that you could restrict your upside
so you might not get much might not get as much capital appreciation now
actually did a video on that I walked through what call options are and how to
use covered calls and why people might use them and how to generate dividend
like income from them even if the company pays dividends we could
manufacture additional dividends if you're curious well that could be a good
next video for you to watch there's a link right here there's a link in the
description below and I really want to thank you for stick with me all the way
into the video I hope you found this interesting thanks that I'll see in the
next video