TheStreetFunds that invest in high-dividend-paying stocks have been in favor this year, but if you want to capitalize on the dividend trend, there are a few things to keep in mind, as FundX President Janet Brown wrote in 3 Tips for Profiting From the High-Dividend ETF Trend on The Street.

Here’s a preview:

Tip #1 –  Focus on ETFs with strong recent returns

“While some dividend funds have had strong recent returns not all dividend funds have done well lately,” Janet wrote, so don’t just buy any dividend fund, look for strong performing funds.

Tip #2 – Take risk into account

“Some dividend funds are riskier than others: they may invest in more volatile areas of the market, like small caps or emerging markets, or they may have more concentrated portfolios,” Janet wrote. That’s why you’ll want to consider how risky a fund may be before you buy it.

To get Janet’s final tip, click over to The Street.

3 ETFs with Strong Recent Returns

ibdOne leading dividend ETF is PowerShares High Yield Equity Dividend Achievers Portfolio (PEY), which was one of Janet’s three ETF picks in Investor’s Business Daily.

“PEY tracks the Nasdaq U.S. Dividend Achievers 50 index, which has historically been more volatile than the relatively placid Dow Jones U.S. Select Dividend index,” Janet noted. But it “offers significantly greater income than a 10-year U.S. Treasury, with the added appreciation potential of a diversified stock portfolio.”

Janet also chose a mid-cap value ETF and an ETF that invests in low-volatility stocks. Click here to get her picks.

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moneylifeshow-imageIs now a good time to own dividend ETFs? Are emerging market funds back in favor?

FundX President Janet Brown answered these questions and more from investors from across the country on the “Hold it or Fold it” segment of the MoneyLife Show with Chuck Jaffe on April 26, 2016.

Get Janet’s take on five funds and ETFs – and find out which ETF Janet would avoid at all costs.

PowerShares QQQ (QQQ)

“This ETF is not for the faint of heart. It’s a little more speculative than the S&P 500. But we love to own it when it’s highly ranked, and we’ve held it for a year and a half.” Note: We held QQQ in NoLoad FundX’s model portfolios since August 2014, and during this time, it gained 13%. But it dropped in our ranks in May 2016 and was replaced.

iShares Select Dividend (DVY)

“We own it, and I would still buy it. It has a lot of utilities, but it is actually quite diversified, and it offers a yield nearly two times the 10-year Treasury right now. We consider it a core fund and continue to hold it.”

Pax Small Cap Fund (PXSCX)

Continue reading “FundX President Janet Brown’s Take on 5 Funds & ETFs” »

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