2 High-Yield ETFs To Get You Through the Recession
Here are two high-yield ETFs that can get you through a recession in 2023 and beyond.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2023-01-14 11:15

2 High Yield ETFs to Get You Through a Recession
I write a lot about growth stocks but let’s be clear: I have a lot of my personal portfolio in ETFs. Why? I think it’s good to have a balanced approach to investing. So even though my growth holdings took a major hit last year, my ETFs and their distributions managed to keep me afloat. Warren Buffett says that most investors are better off just holding a portfolio of low-cost index funds. If it’s good enough for Buffett, it’s good enough for me.
2 High-Yield ETFs To Get You Through the Recession
A lot of people scoff at ETFs claiming that they are boring and do not provide enough growth. It's true, most ETFs are slow-build and are meant for long-term investing. You can trade all of the growth stocks and options you want in the short-term, while still holding a base of ETFs in your account. Both of these things can be true. If you want to avoid some of the volatility in the markets right now, here are two high-yield ETFs that can get you through a recession in 2023 and beyond.

Schwab US Dividend Equity ETF (SCHD)
This ETF has been getting a lot of buzz on Twitter because of its dual strategy of long-term capital growth as well as high dividend payments. These are two things you want to grow your wealth with minimal downside risk. Last year, the ETF fell by about 5% which far outperformed the S&P 500 index. Why do I like this ETF? It has a really low MER of 0.06%. This means that for every $10,000 you have invested, Schwab only takes $6.00 in fees per year. It also has a solid 30-day SEC Yield of 3.30% which is also higher than the average dividend yield amongst S&P 500 companies. With that yield, you get paid about $0.70 per share every quarter or about $2.56 per share each year. This fund holds some of the best dividend-paying stocks in the US including Home Depot (NYSE: HD), Verizon (NYSE: VZ), Texas Instruments (NASDAQ: TXN), PepsiCo (NASDAQ: PEP), and Coca-Cola (NYSE: KO).

JP Morgan Equity Premium Income ETF (JEPI)
This is a newer ETF that provides more in the way of income flow than long-term growth. But in a recession, that kind of investment is a perfect way to grow your cash reserves. Now, this ETF has a much higher MER than SCHD as it sits at 0.35% compared to 0.06%. But to counter that, this ETF pays out a monster monthly dividend yield of 11.77%! How does it do this? JEPI is a covered call ETF that earns a premium on its out-of-the-money call options that it sells on its holdings. It pays these out to shareholders and takes the MER as a cost. It’s a great solution for investors who want to park a lot of money and get a steady stream of monthly income. This ETF holds some of the best blue-chip stocks including Mastercard (NYSE: MA), Exxon Mobil (NYSE: XOM), Coca-Cola, AbbVie (NYSE: ABBV), and UnitedHealth Group Inc (NYSE: UNH).


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Guest
Guest
1 year ago
Totally agree
0
Guest
Guest
1 year ago
Nice advice!
0
Published On
2023-01-14 11:15

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Levi Strauss' Bold Gambit: Is the Denim Icon's DTC Shift Enough to Weather the Storm?
Levi Strauss & Co. boasts a strong quarter with direct-to-consumer growth and innovative fashion, but can it navigate the choppy waters of the retail market?
By Alfonso | 3 months ago

Amazon's Bold Counterattack: Introducing the China-Direct Discount Section
As competition heats up, Amazon unveils a daring new strategy to offer unbeatable prices and direct shipping from China.
By Alfonso | 3 months ago

Tesla's Legal Challenges: Facing the Music on Autopilot Misrepresentation
Court ruling intensifies scrutiny on Tesla's self-driving claims.
By Alfonso | 5 months ago

Netflix's Ad-Supported Triumph: A New Era in Streaming
Surpassing 40 million users, Netflix’s ad-supported plan redefines the streaming landscape.
By Alfonso | 5 months ago

Tesla Stock (TSLA): Look Who's Back!
I’m cautiously optimistic but I’m at the point where I need to see it to believe it.
By Mike Sakuraba | 5 months ago

2 Earnings To Pay Attention to Next Week
Since big tech is the theme, you probably know what I have my eyes on for next week.
By Mike Sakuraba | 5 months ago

2 Stocks to Watch Below $10
Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
By Mike Sakuraba | 5 months ago

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 5 months ago