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High Yielding Income Strategies With Low Risk

An income-driven portfolio is a popular choice for many investors. Not only does it provide a steady stream of predictable returns, it helps to mitigate risk and volatility.

In the current economic environment of low yields and high stock valuations, finding a high-yield asset that doesn’t come at the cost of increased portfolio risk is a smart way to ensure steady returns.

The historical average price-to-earnings ratio for the S&P 500 Index is around 15. But right now, the S&P 500 has an average P/E over 34, which is more than double the historical average. Investors seeking safety in risk-free fixed income assets are struggling to find competitive gains with the 10-year Treasury only offering a yield around 1.24%.

Luckily, there are several ways to still generate higher-than-average yields and keep your portfolio risk to a minimum.

Be sure to check out our Portfolio Management Channel to learn more about building or rebalancing your portfolio.

Strategies to Consider

S&P 500 vs S&P 500 total return

The Bottom Line