I am taking over some of my IRA and 401K money and I want to move towards a more value based approach with an emphasis on dividends. One thing I have learned on this quest is that most options have the ability to use leverage and derivatives to generate return. I wanna make sure that my investments are not sitting with PMs who are too reliant on gambles to kick out a dividend so I do not get soaked.
My question to the community is how can I check if a fund/ETF is highly leverage at any given point in time? I am leaning more towards ETFs since I like being able to bail out at any point of the day. Ideally I want high dividend yield ETFs but if a firm is rolling the dice with options and other exotic stuff I would like to know. The charter says what is allowed but it doesn't say what is currently being done. Is there any way see through this veil?
Thanks in advance.