As bond yields have collapsed, those searching for a way to generate a mid-single digit yield or higher have, in many cases, looked to exchanged traded funds (ETFs) with a dividend mandate to create a diversified income stream, for good reason.
This is especially true for investors who find themselves with few good income options today.
This has resulted in far less capital appreciation than other funds focused on high flying, technology growth stocks, for example, which have absolutely taken off in recent months. For those with a higher risk tolerance or the need for capital appreciation growth, such dividend ETFs may not be the best choice, particularly in this current market.