Exchange-traded funds (ETFs) can be an easy “one-click way” to diversify your dividends. Instead of grinding on the viability of any single payout stream, why not build a basket of them?
But be careful – some pooled payouts are all bad and don’t even keep up with the broader market. In a minute, we’ll review ten dividend dogs masquerading around under the perceived “diversification safety” that ETFs provide.
Make no mistake, there’s a recent rush to ETFs. The 2016 U.S. Exchange Traded Funds Study by Greenwich Associates shows that institutional investors, including pension funds, are increasingly pouring their money into ETFs, from 18.9% of all ETF assets in 2015 to 21.2% last year. And they’re being driven by a number of factors, such as decreasing risk and adding diversity to their portfolios. …