This 3-Click “Mini-Portfolio” Holds Stocks and Bonds (and Yields 8.1%)

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This 3-Click “Mini-Portfolio” Holds Stocks and Bonds (and Yields 8.1%)

Having a diversified portfolio is pretty much Investing 101, right?

I mean, it’s one of the first things we all learn as investors. But there’s a problem here: Going for balance in “regular” stocks, bonds or ETFs can mean leaving income on the table.

To see what I’m getting at here, check out the average yields on two ETFs many people buy for stock and bond exposure. For stocks, I likely don’t have to tell you about the SPDR S&P 500 ETF Trust (SPY). It’s the popular S&P 500 tracker. And it yields a microscopic 1.2%.

There are plenty of options on the bond side, but let’s go with a fairly high-yielding ETF, the SPDR Bloomberg High-Yield Bond ETF (JNK).… Read more

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Why “High” Fees Could Pay Off When You Buy These 8%+ Dividends

When choosing between closed-end funds (CEFs), you might be tempted to put a lot of focus on fees. That makes sense. Nobody likes high costs eating into their returns.

But there’s more to CEF performance than just the expense ratio, and if you focus on buying the funds with the lowest fees, you might leave a lot of money on the table.

Because the truth is, there’s no clear relationship between fees and long-term returns. A CEF’s portfolio and the skill of its managers play a far greater role in determining its success than fees alone.

Breaking Down the Data: No Simple Relationship Between Fees and Returns

Let’s start with the data.… Read more

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The Best, and Worst, Junk Bond Funds (Paying Up to 10.2%)

Junk bonds can be a great source of retirement income, or a terrible idea altogether. It depends what you buy, and really, which managers and vehicles you entrust to find value in the bargain bin.

There’s a right way to do it, and a wrong way. Let’s start with the latter, led by the popular iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Barclays High Yield Bond ETF (JNK) – the two largest junk bond exchange-traded funds (ETFs), and both top-10 fixed-income ETFs by assets under management.

You and I can do better than these dumb ETFs. They are popular thanks to their low fees.…
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