3 Reasons Why This Is a Great Income ETF

The above chart shows the historical volatility of the three ETFs constructed using the 30-day rolling standard deviation. We can see that apart from the spike in volatility during the 2009 mortgage crisis, all three ETFs have had fairly low volatility.

However, most importantly we see that the volatility line for CVY is almost in synchronization with that of the other two ETFs, indicating that CVY does in fact generate those extra yields without the extra volatility.

The bottom line
With the Federal Reserve holding off tapering its quantitative easing program in its latest policy meeting, it seems that interest rates will continue to remain low for some more time. In this scenario income investing will surely continue to be a challenging act as it has been for so many months. However, for the yield-seeking investors, CVY seems like a good bet going forward.

The article 3 Reasons Why This Is a Great Income ETF originally appeared on Fool.com.

Ankush Shaw has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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