Exchange-traded funds (ETFs) shattered growth records in 2017, with inflows topping $464 billion last year. The global ETF market now boasts more than $4.5 trillion in assets, and a large part of the appeal has been driven by dirt-cheap fees.
But many of these fund’s fees are “cheap for a reason.” We’ll talk about five today that lure investors in with appealing current yields – but then proceed to dump their dumb money out the back door.
These five funds may have sweet dividend yields, but they have produced sour total return results thanks to one fundamental flaw or another.
ETRACS Linked to the Wells Fargo Business Development Company Index ETN (BDCS)
Dividend Yield: 8.7%
One of the most basic appeals of the exchange-traded fund is the cheap diversification they provide.…