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Income Investors May Want To Take A Look At Germany ETFs

27 January 2012 at 12:51 pm by Staff     Bookmark and Share    Follow EtfExpert on Twitter

Bernanke and the Federal Reserve have chosen a path of less resistance. Specifically, they’re going to do whatever it takes to keep interest rates negligible… all the way out to 2014! And Ron Paul doesn’t have the muscle or the media to stop them.

Record-low rates may be great for borrowers who qualify for home loans. However, banks remain super-stingy. Moreover, low rates have been far more beneficial to corporations wishing to refinance debts. (Say goodbye to the easy money in preferred shares of AT&T and DTE Energy.)

On the flip side, savers and income investors have had less to be cheerful about. CDs protect principal in theory, but rates are so low, one loses out to inflation. Ditto for the holders of 10-year treasury bonds.

So how can income investors get more yield? They may have to consider longer-dated bond maturities, leverage and/or foreign investments. 

High quality U.S. corporate credit not enough? Consider diversifying overseas with ProShares German Sovereign/Sub-Sovereign (GGOV). It is the first U.S. ETF that focuses on German sovereign debt.

Believe that ”riskier” corporations have improved their balance sheets? One writer below serves up 11 closed-end funds (CEFs) that use leverage and/or travel further out on the yield curve.

A-Bund-ance Of New German Debt Investment Vehicles – Michael Aneir, Barron’s
4 Strategies For Increasing Yield And 11 CEFs That Will Help You Profit – The Boring Advisor, Seeking Alpha
Four Paths To Real Estate Profits With ETFs – Ron Rowland, Money And Markets
Key Report For Homebuilders ETF – Dave Fry, The Street
Less Risk, More Return – Paul Amery, Index Universe
 
 

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Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFseasier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

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