Should you invest in this fund that gives you 5% yield?

This ETF is targeting to be listed on 13May 2024, and the name of the ETF is 'LION-OCBC SECURITIES APAC FINANCIALS DIVIDEND PLUS ETF'. As indicated in the website, the ETF will be paying 5% dividend yield for the first 2 years. What will I be doing?

Let's look at what I like about this ETF:

1. Well known brand with LION-OCBC, and top financial institutions.
2. Decent 5% dividend yield for first 2 years, and if it can continue.
3. Predictable payout with quarterly distribution.
4. Diversify (almost equal weightage) across major economic countries such as Singapore, Japan, Australia, Korea, Hong Kong, Malaysia, etc.
5. Exposure to market (japan, korea, Australia) which is difficult to access for retail investors.

Now, what I dont like about this ETF:

1. Concentration in only Financial sector in these markets.
2. Most of the counters in the ETF are trading close to or at all time high.
3. How will the Fed rate cut affect this ETF.
4. Underlying index is paying a dividend yield of 5.91%.
5. From the ETF website it stated as a disclaimer that the distributions are not guaranteed.

For those who are happy with the 5% dividend yield, this is not a bad choice to have exposure to these markets.

For those who wants a little more and can wait, given that the underlying index has a past dividend yield range of 4.2% to 5.91%, maybe more attractive to enter when the yield is more than 5.5%.

Please do your own due diligence, this is not an investment advice.