When investors hang up their work boots for the last time, a portfolio that produces a solid, steady income is often high on their wish lists. Exchange-traded funds (ETFs) are great choices that generate strong yields with relatively little expense. Three ETFs worthy of consideration by retirees in search of high yields are: iShares U.S. Preferred Stock ETF (NYSEMKT: PFF), Vanguard High Dividend Yield ETF (NYSEMKT: VYM), and Alerian MLP ETF (NYSEMKT: AMLP).
Tim Brugger (iShares U.S. Preferred Stock ETF): Since its inception in March of 2007, the iShares U.S. Preferred Stock ETF has demonstrated slow but steady appreciation to go along with its outstanding 5.67% dividend yield.
Preferred stock is somewhat of a hybrid between high-yield bonds and common stock. Like the latter, it offers ownership of a company. However, preferred stockholders generally don't have voting rights, though they are given precedence over common shareholders when it comes time to pay dividends.
Source: Fool.com