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High-Income Combo Portfolio

September 2016

This recommended investment portfolio is one of 20+ mutual fund portfolios that we've assembled for investors with different time horizons and risk-tolerance levels to consider. Visit our Portfolio Finder to see them all.

 
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High-Income Combo Portfolio

Based on the Kiplinger ETF 20, our favorite exchange-traded funds.
 35% Stocks |  40% Bonds |  25% Alternative | 


 Data through October 31, 2017

FUND NAME SYMBOL % OF
PORTFOLIO
YTD
RETURN
1-YR
RETURN
3-YR
RETURN
5-YR
RETURN
10-YR
RETURN
MAX LOAD EXPENSE RATIO
AlternativeAlerian MLP ETFAMLP10%-10.47%-6.21%-9.82%-1.44%—%none%0.85%
BondVanEck Vectors Fallen Angel High Yield Bond ETFANGL109.2910.049.098.65none0.35
StockiShares S&P Preferred StockPFF157.844.664.855.314.82none0.47
AlternativeiShares FTSE NAREIT Mortgage REITsREM1515.2917.918.256.781.86none0.48
StockSchwab U.S. REIT ETF™SCHH100.593.725.18.99none0.07
BondSchwab U.S. Aggregate Bond ETF™SCHZ303.150.822.331.95none0.05
StockVanguard High Dividend Yield ETFVYM1011.419.469.9514.037.54none0.08
   1005.56.344.115.441.75 0.31
** Closed to new investors. # Closed to new investors; other share classes are available.
r Maximum redemption fee charged when you sell shares. s Front-end load; redemption fee may apply.
— Fund has not existed for the specified time. Source: Morningstar, Inc..

For income investors, we recommend a mix of traditional bonds, preferred stocks and other income investments, aiming for a 5% yield. The portfolio may lose money, especially if interest rates rise or if the yield investments, such as real estate investment trusts and master limited partnerships, take a hit.

But lower bond prices would push up yields, delivering more income over time. And some of the portfolio’s yield investments, such as MLPs, may move up even as bond prices decline. Depending on which broker you use, you will have to pay commissions to trade some, if not all, of the ETFs in this portfolio.