posted on 06-06-2019

Income-Oriented ETF

Updated October 1, 2019

What is Income-Oriented ETF?

An income-oriented ETF is an exchange-traded fund that pays frequent dividends or interest payments to investors in the ETF.

How Does Income-Oriented ETF Work?

An income-oriented ETF is made up of stocks that typically pay substantial monthly or quarterly dividends and, in some cases, bonds that make higher-than-average interest payments.

Why Does Income-Oriented ETF Matter?

Income-oriented ETFs are a good choice for investors seeking a stream of income from a diversified set of i stocks and fixed-income securities.


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Related Definitions

Fund
Fund usually refers to mutual fund, which is an open-ended investment company that pools investors' money into a fund operated by a portfolio manager. This... See More
Exchange-Traded Fund (ETF)
Exchange-traded funds (ETFs) are securities that closely resemble index funds, but can be bought and sold during the day just like common stocks. These... See More
Stock
Stock, also known as equity, represents ownership interests in corporations. Whether you own one, 100 or 100 million shares of stock in a company, you're... See More
Bond
A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between... See More
Income
Income is an actual or recorded inflow of cash or other assets. The term is used in many different contexts. See More
Stock
Stock, also known as equity, represents ownership interests in corporations. Whether you own one, 100 or 100 million shares of stock in a company, you're... See More
Fixed Income Security
A fixed income security is an investment that pays regular income in the form of a coupon payment, interest payment or preferred dividend. See More

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