Today I’m recommending the Etracs Monthly Pay 2x Leveraged U.S. High Dividend Low Volatility ETN (HDLV). HDLV is a relatively new issue that went public in early October and will make a nice complement to double-digit-income earners.
HDLV is an exchange-traded note backed by UBS AG (OUBS) as a debt instrument. HDLV pays a monthly return compounded by 2x leveraged exposure to the Solactive U.S. High Dividend Low Volatility Index; that payment is reset each month in conjunction with the income received from the components that make up the index.
You can view all of the HDLV components by , but here are the top 10:
Because HDLV has paid out only one dividend, the current yield is not posted on most websites. However, the fund representatives are comfortable estimating the forward yield at 10.04% using a rolling three-month average, as is the case with all the Etracs income products.
I’m very warm to the Solactive Index holdings and believe that this hybrid income vehicle will be a solid performer for us for many months … and hopefully beyond a year or more.
Bryan Perry is the editor of , a newsletter focused on high-yield income investing with the goal of maintaining a blended total yield of 10% across two portfolios. And most recently, Bryan introduced . With this service, he’s increasing the income stream potential even further by using covered call writing strategies to generate yield in the form of option premium — on top of capital appreciation income from well-known stocks.
