Much Better Than a CD: 3 ETFs Paying Over 6% That You Can Sell Anytime

Core Insights - The article discusses the advantages of dividend ETFs over Certificates of Deposit (CDs) in the current high-interest rate environment, highlighting the potential for higher yields and greater flexibility in accessing funds [2][3][4]. Group 1: Comparison of Investment Options - CDs provide safety and predictable returns but come with fixed terms and early withdrawal penalties, resulting in lower yields compared to some dividend ETFs [3][4]. - The true yield on CDs drops to approximately 4% when accounting for current inflation, making them less attractive for long-term holding [3]. - Holding money in CDs year after year incurs significant opportunity costs as investors miss out on stock market gains [4]. Group 2: Dividend ETFs Overview - The iShares Flexible Income Active ETF (BINC) aims to maximize long-term income and capital appreciation, utilizing a multisector approach across global fixed income markets [5]. - BINC offers a yield of 6.14% monthly, managed by Rick Rieder, who oversees approximately $2.7 trillion in assets [6][7]. - The ALPS REIT Dividend Dogs ETF (RDOG) yields 6.67% quarterly and is diversified across 47 REITs, positioned to benefit from potential Federal Reserve rate cuts [7]. - The iShares Preferred and Income Securities ETF (PFF) yields 6.07% monthly but has experienced an 18.8% loss over five years, trading below par value [7].