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5 High-Yield ETFs You Might Not Have Heard Of


Looking beyond junk bonds for returns.

It's been a good year for US equity investors, with the Dow Jones Index (INDEXDJX:.DJI) having hit an all-time high this month, while the S&P 500 (INDEXSP:.INX) was, at one point, also within 10 points of its all-time closing high of 1,565.15 set on Oct. 9, 2007.

Investors have turned to equities for a better return since the Federal Reserve's quantitative easing and low interest rate policies have killed the yields of many asset classes like investment-grade and government debt. But given the gloomy economic environment globally, it seems all but inevitable that the music will stop at some point in the near future.

Thus, income investors seeking diversification have poured assets into high-yield ETFs like the iShares iBoxx High Yield Corporate Bond ETF (NYSEARCA:HYG) and the SPDR Barclays Capital High Yield Bond ETF (NYSEARCA:JNK). For those looking for alternative high-yield ETFs, however, here are five to consider:

iShares MSCI Singapore Small Cap Fund (NYSEARCA:EWSS)

High Yield ETFs
Though it is a more mature and developed Asian economy compared to the likes of China and India, Singapore continues to deliver strong growth. With its low taxes and pro-business policies, Singapore is rapidly becoming the new Asian financial capital, attracting global elites like Facebook (NASDAQ:FB) co-founder, Eduardo Saverin, who gave up his American citizenship to reside there.

EWSS will give investors exposure to Singapore's small-cap stocks, especially the nation's financial/real estate sectors, with REITs comprising over 50% of the fund. Industrials, at 17%, is the next largest sector.

The ETF has a 12-month yield of 20.11%. It has an expense ratio of 0.59% and a net asset value of $9.17 million. Its current market cap is $9.21 million. Because it is so thinly traded, EWSS has wide bid-ask spreads such that your order could take a longer time to be filled.

Year-to-date, EWSS is up 0.59%.

iShares MSCI Hong Kong Small Cap Fund (NYSEARCA:EWHS)

Like Singapore, Hong Kong is positioning itself as the financial hub of Asia, and the pearl of the Orient has a distinct advantage thanks to its proximity and access to the booming Chinese market.

Similar to EWSS, EWHS will provide investors exposure to Hong Kong small-cap and mid-cap stocks. The ETF tracks the performance results of the MSCI Hong Kong Small Cap Index, which is comprised of the bottom 15% Hong Kong public companies in terms of market capitalization. The majority of its holdings are in the financials, industrials and consumer discretionary sectors.

The ETF has a 12-month yield of 14.38%. It has an expense ratio of 0.59% and a net asset value of $2.73 million. Its current market cap is $2.75 million.

Year-to-date, EWHS is up 1.12%.
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