Dividend paying stock ETF with a distribution yield of 7.08%

CAMBRIA FOREIGN SHAREHOLDER YIELD, FYLD ETF from Cambria.

This is more complete than a dividend payers strategy, because cash generated by a corporation can also be returned to shareholders in the form of buybacks, which is actually more tax efficient for the investor.

The expense ratio is high 0.59%, as this is an actively managed ETF. It has beaten SPY, QQQ, and EFA (largest unmanaged foreign developed ETF) year-to-date.

This is not a recommendation - I am not a financial advisor, and I am not your advisor. I have nothing to do with Cambria Funds. I don’t own this ETF… yet. I’m thinking about it.

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The investment seeks income and capital appreciation. The fund is actively managed and seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its total assets in equity securities, including common stock and depositary receipts, issued by publicly listed companies in developed foreign markets excluding the U.S. (“developed ex-U.S.”), that provide high “shareholder yield.” Its investment adviser, Cambria Investment Management, L.P. (“Cambria” or the “Adviser”), defines “shareholder yield” as the totality of returns realized by an investor from a company’s cash payments for dividends, buybacks and debt paydowns.

Morningstar computes distribution yieldby summing the trailing 12-month’s “income distributions” and dividing the sum by the last month’s ending NAV, plus any capital gains distributed over the same period. It does not reflect return of capital distributions. Morningstar defines “income distributions” as only including distributions related to interest payments by the fund’s underlying fixed-income securities and dividend payments related to the fund’s underlying equity securities.

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It’s a lot riskier than a broad-market fund. But as long as you’re not pouring a significant amount of money you can’t afford to lose into it or using it for your retirement account, go for it. It could yield you some nice returns, especially with those dividends. I’ve considered putting money into similar funds before.

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It’s not a core holding to be sure but could be an interesting one to have a small position in

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Nothing wrong with that in my opinion.