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ETF Specialist

ETFs with High Yields to Help You Sleep at Night

In the search for sustainable yields, it's critical to look under the hood of your ETF.

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Financial markets around the globe are fluctuating violently due to greed and fear--with fear overshadowing occasional glimpses of optimism over the past few months. Amid the unprecedented levels of volatility we are experiencing in the market today, it's no surprise that many investors are clamoring for some sort of stability, or a financial "safety-net," if you will. To that end, we decided to dig through our database of more than 800 ETFs in search of the highest-yielding funds. If we are facing a period during which investors should expect lower returns due to the deleveraging process our financial system is--and will continue to--undergo, as well as the looming threat of a global slowdown, then sustainable dividend payments could be an excellent way to ensure we're capturing our fair share of the market's returns.

At  Berkshire Hathaway's (BRK.B) shareholder meeting in May, CEO Warren Buffett made it very clear that he's ratcheted down his expectation for future returns on publicly traded stocks. When asked about his outlook for expected returns on Berkshire's stock portfolio, Buffett promptly replied, "We would be very happy if we earned 10%, pretax." Cochairman Charlie Munger added, "You can take what Warren said to the bank. We are very happy at making money at a rate in the future that's much less than the past�and I suggest that you adopt the same attitude." Keep in mind that these are two of the greatest investing minds of our time, if not in history.

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John Gabriel has a position in the following securities mentioned above: BRK.B. Find out about Morningstar’s editorial policies.