19 Leveraged ETFs that Pay a Monthly Dividend
Investing

19 Leveraged ETFs that Pay a Monthly Dividend

For all you dividend investors, there are some particular investments that could be of mind to you when you are constructing your monthly dividend portfolios. For the most part, these ETFs are leveraged, and they have been created by UBS under the moniker ETRACS.  These leveraged ETFs that pay a monthly dividend are actually notated as ETNs, or Exchange Traded Notes. The difference between an ETF and an ETN has to do with how risk is treated. With ETFs there is tracking risk and ETNs are structured unsecured credit products. Regardless, they are both traded on exchanges and can be invested in by retail investors (you).

Leveraged ETFs and ETNs can be used by investors to provide a supercharged return. These ETFs also come with supercharged risk, however, and can move very quickly and largely against you. So you must use them with an abundance of caution. With that being said, some of the highest yielding ETFs that pay a monthly dividend are the following (All of the below are 2x leveraged):

MRRL – Mortgage REIT Series B – 21.56%

MORL – Mortgage REIT – 21.56%

SMHD – Small Cap High Dividend – 18.93%

SMHB – Small Cap High Dividend Series B – 18.92%

CEFL – Closed End Fund – 18.53%

CEFZ – Closed End Fund Series B – 18.53%

MLPQ – Alerian MLP Series B – 18.20%

MLPZ – S&P MLP Index – 16.50%

LBDC – Wells Fargo Business Development Company Index Series B – 16.07%

BDCL – Wells Fargo Business Development Company Index – 16.07%

DVHL – Diversified High Income – 14.73%

LMLP – Wells Fargo MLP Ex-Energy – 14.66%

LMLB – Wells Fargo MLP Ex-Energy Series B – 13.22%

HDLV – US High Dividend Low Volatility – 12.55%

PFFL – Preferred Stock – 11.78%

HDLB – High Dividend Low Volatility Series B – 10.70%

DVYL – Dow Jones Select Dividend Index – 7.62%

LRET – MSCI US REIT Index – 7.48%

SDYL – S&P Dividend – 5.62%

The above 19 leveraged ETFs will pay you a monthly dividend without fail.  However, you must be aware that some of these ETNs do not perform very well over the course of a year. So be very wary of which ones are performing well at the current time. For instance, you will want to stay away from the MLP based ones, as they have negative returns for their entire existence, and their dividends rarely outpace their losses. The Best performing ETNs that would be worth looking into would be DVYL, SDYL, PFFL, and HDLB. Some of these Leveraged ETFs that pay a monthly dividend are relatively new to the market, so there is not a healthy record of their multi-year performance. Invest wisely!

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