income generating fund 4%

MarcoM

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

artyboy

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

CSH2 will give close to that with minimal risk, but will be at the mercy of BoE base rate changes.

poseidon1

Thie list below  identifies etfs which pay monthly. 

https://www.dividenddata.co.uk/monthly-dividends.py

I would suggest the UK bond related etfs would be nearer your mid to low risk profile.

I have large holdings in  Twenty four select monthly Income Fund ( a very specialist bond fund), but that is definitely in the higher risk category even compared to some of the equity funds. You have to pass a sophisticated investor test with the major investment platforms before being allowed to invest in it.

MarcoM

artyboy said:

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

CSH2 will give close to that with minimal risk, but will be at the mercy of BoE base rate changes.

can it be bought through a broker like h and l?

wmb194

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

Pimco's Sterling Short Maturity ETF LSE:QUID pays interest monthly and holds high quality bonds. Current yield is about 4%.

One month UK Treasury bills are currently paying about 4% and are available via Freetrade. IIRC AJ Bell offers bills with longer durations.

https://www.pimco.com/gb/en/investments/etf/pimco-sterling-short-maturity-ucits-etf/artf-gbp-income

dunstonh

MarcoM said:

artyboy said:

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

CSH2 will give close to that with minimal risk, but will be at the mercy of BoE base rate changes.

can it be bought through a broker like h and l?

You mean HL.
Yes, whole of market platforms can buy investments available to the whole of market.  This is essentially the point of whole-of-market platforms.

Do note that the answer to your question is correct, but there needs to be emphasis on your requirement that says "currently".

ColdIron

Must it be an ETF? Why have you dismissed open ended funds and investment trusts?

Is monthly a red line? You will have a lot more choice if you drop that restriction

poseidon1

artyboy said:

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

CSH2 will give close to that with minimal risk, but will be at the mercy of BoE base rate changes.

Isn't this a non distributor fund ( last time I looked). Also see thread below

https://forums.moneysavingexpert.com/discussion/6489744/csh2-income-or-capital-gains#latest

MarcoM

poseidon1 said:

artyboy said:

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

CSH2 will give close to that with minimal risk, but will be at the mercy of BoE base rate changes.

Isn't this a non distributor fund ( last time I looked). Also see thread below

https://forums.moneysavingexpert.com/discussion/6489744/csh2-income-or-capital-gains#latest

looks like it is an accumulation fund only

MarcoM

ColdIron said:

Must it be an ETF? Why have you dismissed open ended funds and investment trusts?

Is monthly a red line? You will have a lot more choice if you drop that restriction

no it does not have to be monthly necessarily. I already have cty and bnkr holdings. 

MarcoM

wmb194 said:

MarcoM said:

Hello, is there an etf fund that can provide a 4% income per year and is mid to low risk currently?
Preferably with monthly income.

Pimco's Sterling Short Maturity ETF LSE:QUID pays interest monthly and holds high quality bonds. Current yield is about 4%.

One month UK Treasury bills are currently paying about 4% and are available via Freetrade. IIRC AJ Bell offers bills with longer durations.

https://www.pimco.com/gb/en/investments/etf/pimco-sterling-short-maturity-ucits-etf/artf-gbp-income

good point about treasury bills