Financial Exchange-Traded Funds Pay Good Yielding Income Distributions

Financial exchange funds (ETFs) offer diversification, low fees and reliable income distributions. They hold financial stocks including money center banks, regional banks, real estate investment trusts (REITs), insurance, mortgage finance, stock exchanges, investment banking and brokerage services.

The yields of six financial ETFs (table) are over two percent, making them attractive investments for income and dividend-reinvestment investors.

Financial ETFs
ETF and Web site	Top Three Holdings	Quote	Income Distribution	Yield
iShares Dow Jones U.S. Financial Sector Index Fund	Bank of America, JPMorgan Chase and Citigroup	IYG	$2.58425	2.53%
Financial Select Sector SPDR	Bank of America, Citigroup and American International Group	XLF	$0.85	2.93%
iShares S&P Global Financials Sector Index Fund	HSBC Holdings, Bank of America and Citigroup	IXG	$2.77978	3.50%
PowerShares FTSE RAFI Financials Sector	Berkshire Hathaway, Bank of America and Citigroup	PRFF	$0.96748	2.23%
Vanguard Financials ETF	Bank of America, Citigroup and JPMorgan Chase	VFH	$1.49	2.84%
WisdomTree International Financial Sector Fund	HSBC Holdings, Banco Santander Central and Intesa Sanpaolo	DRF	$0.73595	2.79%
Note: Top Holdings and 2007 Income Distributions taken from each ETF's Web site as of December 27, 2007.

Related Articles:

Exchange-Traded Funds (ETFs) Offer Diversification With Low Fees
Money Center Banks Stocks Pay Good Dividends
Portfolio of Regional Banks
Why Dividends Matter

Posted December 28, 2007.