These Fat 9% to 24% ETF Yields are Traps

I told you that the Infracap MLP ETF (AMZA) was a dog . Well, the fund just cut its dividend by 37% . This is one of the biggest ETF payout cuts in recent memory, and it’s a gut punch to shareholders who rode out massive underperformance for the income tradeoff. That payout mattered . Just look at the difference between price returns and total returns in the chart below: Just because a yield is wrapped in a fancy ETF wrapping doesn’t mean it’s safe. This ETF dividend slash could be the first of several. So let’s talk about three ETFs – which pay between about 9% and 24% – whose dividends are far from secure.… Read more