ETF Traders Are Giving You These 3 High-Yield Stocks at a Discount


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ETF Traders Are Giving You These 3 High-Yield Stocks at a Discount

ACCELERATING DIVIDENDS, ETFS, HIGH-YIELD INVESTING
 

For investors who own individual dividend paying stock, it has become difficult to see why share prices move as they do. You probably know the feeling of having one of your stocks make a big move —usually down—and you cannot see any reason for the stock price action. Much of the blame for wild stock swings can be laid at the feet of exchange traded funds and the traders who short-term trade ETFs.

An ETF owns shares of stock to match the components of a specific stock index. For example, the SPDR S&P 500 ETF (NYSE: SPY) owns the 500 stocks in the same proportion as tracked by the Standard & Poor’s 500 stock index. The financial products industry has gone nuts with the development of new indexes to carve up the market into sectors and ETFs to track them. Currently there are over 2,000 ETFs listed in the U.S. The majority —78% of assets—of ETFs are based on stock market indexes. Those assets total over $2.4 trillion. ETF trading has become a very big part of what goes on in the stock markets.

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