Inflation-Beater ETFs that Give More than 10% Yield Right Now

Investors who are looking for yield are in for a good time right now.

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Since the Federal Reserve has hiked interest rates aggressively over the course of the past year, a number of U.S. Government bonds have a yield that exceeds 4%.

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In order to attract investors, equity funds and corporate credit funds have increased their returns to entice investors to invest in their funds.

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Trade Algo was used to screen out ETFs that invested in stocks and bonds as well as yielding more than 10% in dividends.

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JPMorgan Equity Premium Income ETF (Ticker: JEPI)

Among the ETFs that appeared on the screen was JEPI, JPMorgan's actively managed equity and equity derivative ETF, which is referred to by its ticker symbol.

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Despite offering a yield higher than many junk bond products, the fund still offers an impressive return to investors.

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There is a 30-day SEC yield of over 11.15% on this stock. A 30-day SEC yield is a measure of dividends and interest that have been earned after expenses have been paid.

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As part of the ETF's strategy, it holds defensive, dividend-paying stocks as well as call options on the S&P 500 Index on a monthly basis.

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As investors look for ways to offset inflation in the current environment, the JEPI has experienced net inflows of over $14 billion over the past year. Among the five ETFs appearing on Trade Algo’s screen, this one holds the most assets, with more than $20 billion in assets, making it the largest of the five.

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WisdomTree Alternative Income Fund (Ticker: HYIN)

The Alternative Income Fund ETF from WisdomTree makes alternative investments such as private equity, private credit, and hedge funds more accessible to investors by making them more accessible to them.

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It was historically the case that these historically exclusive assets were limited to institutional investors and ultra-high-net-worth individuals because of the eligibility requirements, high investment minimums, fees, and liquidity concerns that they faced.

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There is a 30-day SEC yield of 11.33% for the Gapstow Liquid Alternative Credit ETF, which tracks the Gapstow Liquid Alternative Credit Index. There has also been an increase in the share price of the ETF this year by nearly 10%.

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VanEck Mortgage REIT Income ETF (Ticker: MORT)

Since 2022, real estate investment trusts (REITs) have seen a dramatic re-rating as a result of the rise in risk-free rates. This means that REITs today, in comparison to this time last year, are offering much higher yields to new investors than they did then.

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One such ETF is VanEck's MORT fund, which has a 30-day SEC yield of 11.91% as of the writing of this article. Index tracker funds are funds that invest in large and most liquid companies in the U.S. mortgage REIT sector that derive at least 50% of their revenue from mortgages, and as a result, have a high level of liquidity.

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BondBloxx CCC Rated USD High Yield Corporate Bond ETF (Ticker: XCCC)

BlondBloxx's XCCC could be of interest to investors who are willing to accept a higher level of risk. This ETF is designed to track the ICE BofA CCC and Lower U.S. High Yield Constrained Index and it is currently offering a 30-day SEC yield of 13.26%.

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There are three major rating agencies that rate the fund as CCC1 and below on average, and this is the average rating of the fund.

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Bond issuers with below-junk credit ratings are often at risk of default due to the fact they pay high-interest rates to borrow money. As part of the fund's risk management program, the fund limits its exposure to any single issuer to 2% of the fund's value.

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JPMorgan Nasdaq Equity Premium Income ETF (Ticker: JEPQ)

The JPMorgan Nasdaq Equity Premium Income ETF appears to be riskier than the JEPI, which is a defensive-leaning ETF. In order to generate income for the JEPQ fund, JPMorgan says that it sells options and invests in U.S. large-cap growth stocks in the Nasdaq 100 Index to generate income.

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There has been less volatility in the returns of this actively managed fund in 2022 as compared to the 2022 performance of the index. An SEC yield of 15.67% is currently being offered by the fund.

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For the past 14 years, Hamilton Reiner has managed both the JEPQ and JEPI portfolios at JPMorgan.