Investing in ETFs can make you a millionaire, however, most of them do not beat the market. The beauty of investing in ETFs is that they trade minimally and often maintain their holding investments for the long term. In most cases, transaction fees are less and it helps generate lower expense ratios. the management fees are generally reduced and investors gain access and exposure to some diversified and non-diversified markets, allowing fund managers to take up the tasks of selecting the investments for the fund's holdings. If you're looking for large ETFs with high yield potential, here are the ten most expensive ETFs ranked by expense ratio that money can buy for your consideration.
10. First Trust Municipal CEF Income Opportunity ETF Expense ratio: 2.65%
Investors lists First Trust Municipal CEF Income Opp as the tenth most expensive ETF. it's listed under the ticker symbol MCEF on the exchange. the expense ratio is high at 2.65 with a year-to-date return of 1.9 percent. It makes the bottom of the most expensive list with its ER of 2.65%. The ETF provides investors with exposure to mixed ratings municipal bonds for a bit of diversity in the municipal bonds market. The fund invests in 34 holdings some of which include Nuveen AMT-Free Municipal Credit Income Fund, Vaneck Vectors High-Yield Muni ETF, BlackRock Muniholdings Quality II CF, Nuveen Enhanced Municipal Value CF, Pimco Intermediate Municipal Bond Active Exchange-Traded Fund, Invesco Vankm Investment Grd Mun CF, Western Asst Municipal Partytners CF, and others.
9. First Trust CEF Income Opportunity ETF Expense ratio: 2.91%
This ETF is listed under the ticker symbol FCEF on the Nasdaq stock exchange. the fund was developed on September 27, 2016, with an inception price of $20.05, serviced through the Bank of New York Mellon Corporation. It's a Multi-Asset Income fund type with an expense ratio of 2.91 with a year-to-date return of 5.5 percent.
8. Global X SuperDividend Alternatives ETF Expense ratio: 2.95%
Global X SuperDividend Alternatives ETF is listed under the ticker symbol ALTY on the stock exchange. The ETF comes with a high-income potential but it's an expensive ETF. The fund invests in five income segments with a decent diversity spread in its portfolio with alternative allocations. The net assets are $37.04 million with an inception date of July 13, 2015. The fund has consistently made monthly distributions for the past six consecutive years. It targets categories with historically high yield potentials including nineteen holdings, a 12-month trailing yield of 7.96%, and a distribution yield of 7.12%.
7. ProShares Global Listed Private Equity ETF Expense ratio: 3.41%
The ProShares Global Listed Private Equity ETF is under the ticker symbol PEX on the exchange. It is in the Financial Equities sector. It tracks the performance of the LPX Direct Listed Private Equity Index with investments of 80% in assets in component securities of the index.
6. AdvisorShares Dorsey Wright Short ETF Expense ratio: 3.68%
Advisor Shares lists the AdvisorShares Dorsey Wright Short ETF as the seventh most expensive ETF with an expense ratio of 3.68%. It's on the exchange under the ticker symbol DWSH in the Global Equities sector. The fund operates under the Nasdaq Dorsey Wright firm with a strong track record for sound investing. It focuses on holdings/securities in funds with a track record for price appreciation and holding them until they signal it's time to sell. It's a shorting strategy that identifies the short sells, shedding those with the highest relative weakness in its systematic investments.
5. Breakwave Dry Bulk Shipping ETF Expense ratio: 3.76%
Breakwave Dry Bulk Shipping ETF is under the ticker symbol DBRY. The fund primarily focuses on companies in the commodities sector. It tracks the Breakwave Dry Freight Futures Index consisting of a three0month selection of calendar quarter futures contracts on commodities indexes measuring rates for shipping dry bulk freight. Holdings include allocations of 50% in Capesize Freight Futures contracts with 40% investment in Panamax Freight Futures contracts. The remaining 10% goes into Supramac Freight Futures contracts. The index is re-balanced yearly.
4. Saba Closed-end Funds ETF Expense ratio: 4.48
The Saba closed-end Funds ETF is listed under the ticker symbol CEFS. The fund is an actively managed fund that generates high income through investments in closed-end funds that trade at a discount to their net asset value. It offers a hedge with exposure to rising interest rates. Experienced professionals in the investment arena allocate funds using proprietary investment models. The models rank funds for inclusion in holdings inclusive of yield, quality of underlying securities, and other factors with the highest potential to outperform index-based closed-end funds through active trading to grasp discount values.
3. AdvisorShares Ranger Equity Bear ETF Expense ratio: 5.20%
AdvisorShares Ranger Equity Bear ETF is under the ticker symbol HDGE. The fund takes a different approach to investment management. The investment model employs forensic accounting with quantum-based methods to identify candidates for short selling. It provides a hedge of protection from a market pullback. It's categorized in the inverse equities category. It's also one of the most expensive ETFs ranked by the expense ratio.
2. Virtus Private Credit Strategy ETF Expense ratio: 6.46%
The Virtus Private Credit Strategy ETF is listed under the ticker symbol VPC. It seeks daily results of the Inverse of the Performance of the INDXX Private Credit Index with a value of 100%. Vetta Fi explains that the fund invests a minimum of 80% in component securities of its underlying index, tracking companies that are the US-listed and registered as closed-end investment companies, considered as business development companies.
1. VanEck Vectors BCD Income ETF Expense ratio: 10.7%
The VanEcK BDC Income ETF is under the BIZDTM ticker symbol. It maintains the overarching goal of replicating the yield performance and price of the MVISUS Business Development Companies Index, tracking the cumulative performance of publicly-traded business development companies. The expense ratio is a whopping 10.7%. It is the most expensive ETF by the expense ratio.
Written by Allen Lee
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