With yields at record lows across the board of all fixed income instruments, CD’s etc, investors need to look at different areas to find higher yielding investment vehicles. ETFs can offer many benefitsother than just a high yield, such as low cost, diversification and liquidity. The following are the top 3 Highest Yielding stock based ETFS.

Exchange Traded Fund Ticker TTM Yield
ishares S&P US Preferred Stock Index PFF 7.18%
Powershares Dynamic Building and Construction PKB 6.83%
SPDR Wells Fargo Preferred Stock PSK 6.79%

iShares S&P US Preferred Stock Index (PFF) tracks the performance of the S&P US Preferred Stock IndexTM. This ETF has a very low expense rati of 0.48%, and is very liquid with over $7 billion in assets under management. The top holdings of this ETF are Ford Motor PFD., National City Capital Trust Preferred and JP Morgan Chase PFD.

Poweshares Dynamic Building and Construction (PKB) seeks to replicate the performance of the Dynamic Building and Construction Intellidex Index. This ETF has an expense ratio of 0.63% higher than its category average of 0.54%. The Largest holding in this ETF are the following stocks: Lennar, Tractor Supply Company and Home Depot.

SPDR Wells Fargo Preferred Stock (PSK) tracks the total return of the Wells Fargo Hybrid and Preferred Securities Aggregate Index. This ETF has has a below average expense ratio of 0.45%. The top 3 holdings in the ETF are Barclays Bank PFD, HSBC Holding PFD and Wells Fargo PFD.

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