When the markets entered brand-new bull-market territory late last week, we gave you three ETFs to help you ride the next leg higher. Just in time for stocks to notch new all-time highs!
Since then, triple-leveraged tech play ProShares Ultra QQQ (QLD, Rated "B+") did its job outperforming the market, with a 4% gain. Meanwhile the non-leveraged Technology Select Sector SPDR (XLK, Rated "B") has also done well, rising about 2% along with the Nasdaq. The Invesco S&P SmallCap Low Volatility ETF (XSLV, Rated "B") is flat, which is good considering the small-cap Russell 2000 Index is down today.
And that's just one way the Weiss Ratings can help you profit in this — or any — market. Here's another …
What if I told you that an investment could beat the market … pay you cash regularly … AND have a smoother ride than the S&P 500 … would you buy it?
I'm talking about dividend stocks. They regularly outperform the S&P 500. And a safer way to buy dividend-payers is through ETFs.
Even better: We've come up with a list of the top three dividend ETFs — that is, funds that pay you to own them. Using our powerful screener technology along with our proprietary software available on the Weiss Ratings website, we chose three ETFs that had the following characteristics.
- The ETF must have a "B-" or better rating from Weiss Ratings.
- The ETFs must have a year-to-date total return higher than 2.1%, which is the current average year-over-year inflation rate.
- They must have a risk rating of at least "Fair."
- And they must have a closing price of under $50 per share.
Meet our top three …
1. Global X SuperDividend REIT ETF (SRET, Rated "B-"). This ETF gives you exposure to 30 of the highest-yielding Real Estate Investment Trusts in the world. Some of its top 10 holdings include Redwood Trust, Medical Properties Trust and Starwood Properties.
The Global X SuperDividend REIT ETF has an expense ratio of 0.55% and offers a monthly payout. This "SuperDividend" REIT lives up to its name, offering a year-to-date total return of about 6%, a one-year total return of 10.71% and a three-year total return of 49.76%.
On top of that, it has a forward dividend yield of 8.56%. Nice!
2. iShares Mortgage Real Estate Capped ETF (REM, Rated "B-"). Here's another basket of REITs, this time with a domestic focus. REM targets those that hold U.S. residential and commercial mortgages.
REM has an expense ratio of 0.48% and pays quarterly. Its top holdings include big names like Annaly Capital Management, Blackstone Mortgage Trust and Apollo Commercial Real Estate.
The iShares Mortgage Real Estate Capped ETF has a year-to-date total return of 4.17%. It also has a one-year total return of 26.12%, a three-year total return of 42.73% and a five-year total return of 65.66%.
Moreover, this ETF comes with a forward dividend yield of 9.97%.
3. VanEck Vectors Mortgage REIT Income ETF (MORT, Rated "B-"). This REIT has many of the same top holdings as REM. But it has a slightly cheaper expense ratio of about 0.41%.
It has paid investors like clockwork in April, July, October and at year-end for the past several years. Year-to-date, it's showing a total return of 5.89%. MORT also provides investors with a two-year total return of 26.7%, a three-year total return of 43.99%, a five-year total return of 69.03% and a forward dividend yield of 10.05%. Outstanding!
Be sure to do your homework before investing in any ETF. And if you are interested in seeing what other ETFs you can find using our screener, consider joining other Weiss Ratings Platinum members in gaining exclusive access to this powerful tool.
You can save any screener you create, to refer back to at any time. And because this data is continually updated, Weiss Ratings automatically adjusts all data and ratings for you.
So if you haven't tried this amazing tool, just start by clicking here. This tutorial will walk you through everything you need to know to generate your custom screener.
Best,
Gavin Magor
Director, Weiss Ratings
Weiss Ratings LLC financial analyst Shane Moore contributed to this report.
