Look to high-yield ETFs for a hedge against declines.
In 2022, the stock market has been incredibly volatile and rising interest rates have created a lot of uncertainty around bonds as well. That means many investors have gone “risk off” as they wait for the dust to settle. However, selling everything and hiding out in cash is not always the best bet. Not only do you have to time your exit perfectly, but you also have to figure out the precise moment to re-enter the market to avoid missing out.
Instead of trying to time the market in 2022, why not simply reduce your risk profile by hiding out in high-yield exchange-traded funds, or ETFs, that deliver a steady stream of cash as a hedge against future declines? In some cases, these investments can allow you to maintain a foothold in the market to participate in the recovery once it gets underway.
The post 7 High-Yield ETFs for Income Investors originally appeared at U.S. News & World Report.