ETFs Brace for the Unwind of the 'Thirst for Yield' Trade

The video discusses the vulnerability of $300 billion in assets to rising interest rates, focusing on various ETF categories like junk bonds, dividend stocks, REITs, and MLPs. It highlights the potential impact on these ETFs, particularly junk bond ETFs, due to changes in Treasury yields. The video also examines the stability of dividend ETFs, distinguishing between high dividend and dividend grower ETFs, and their potential resilience or vulnerability to rate changes.

Which category of ETFs is mentioned as having been built on the back of low interest rates?

• Real Estate ETFs

• Technology ETFs

• Junk Bond ETFs

• Healthcare ETFs

What is the median yield of a junk bond ETF as discussed in the video?

• 3.5%

• 4.5%

• 5.5%

• 6.5%

Why might some retail investors move away from junk bond ETFs?

• They are attracted to lower yields.

• They want to avoid holding junk debt unless necessary.

• They prefer higher risk investments.

• They are seeking more volatile markets.

What distinguishes high dividend ETFs from dividend grower ETFs?

• High dividend ETFs focus on companies with increasing dividends.

• Dividend grower ETFs focus on companies that have increased dividends over time.

• Dividend grower ETFs focus on companies with decreasing dividends.

• High dividend ETFs focus on companies with stable dividends.

What is the median yield on a dividend stock ETF compared to Treasury yields?

• Unrelated to Treasury yields

• Higher than Treasury yields

• Lower than Treasury yields

• Equal to Treasury yields