ETFs have become a primary investment tool due to their intraday liquidity. High-yield ETFs such as PFLT, SCM, EFC, DX, and HRZN attract income-focused investors with yields exceeding 9%. These ETFs typically include floating-rate debt or investments in Business Development Companies (BDC), presenting both high yield potential and risks related to credit quality and market volatility. Their daily price fluctuations appeal to both long-term income investors and short-term traders, allowing for strategic trading around dividends.
ETFs have grown into a dominant investment vehicle due to their intraday liquidity, with income-focused investors increasingly turning to high-yield names like PFLT, SCM, EFC, DX, and HRZN - each yielding over 9%.
These ETFs often hold floating-rate debt or business development company (BDC) investments, which offer high yields but carry elevated risk tied to credit quality and market volatility.
Their appeal spans both long-term income investors and short-term traders, as their daily price action enables tactical entry and exit strategies around dividend events and market swings.
The advantage to owning ETFs is the ability to sell immediately without waiting for end-of-day pricing, unlike traditional mutual funds.
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