Traders on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
As bond yields plunge to historic lows, investors craving for steady income are turning to dividend-focused funds. But beware — not all dividend exchange-traded funds are created equal.
There are hundreds of ETFs that currently offer much higher payouts than the benchmark 10-year Treasury, whose yield has tumbled to only around 1.5% during this historic move globally lower in rates.
However, investors need to understand the risks when buying these funds, experts warned.
“I think what a lot of people overlook is they get too caught up in just searching for yields,” Daniel Sotiroff, a manager research analyst for…