Multi-Asset: An Appealing Income ETF

One way to generate yields is to build a portfolio containing different types of assets. A big advantage of such a portfolio would be its diversification above and beyond the sector and country, notes Genia Turanova, editor of Leeb Income Performance.

For a long while now, one could invest in a mutual fund whose prospectus stipulates that it divide investments between equities and bonds, a sort of one-stop asset allocation fund.

These days, however, investors can also find ETFs to do pretty much the same thing, namely, create a conservative, moderate, aggressive, or even growth allocation.

An appealing choice in the multi-asset category is First Trust Multi-Asset Diversified Income Index Fund (MDIV).

Most recent data indicates that the ETF is invested in dividend-paying equities (26.4%), Master Limited Partnerships (21.3%), preferred securities (18.7%), Real Estate Investment Trusts(18.2%), and high-yield corporate bond ETFs (15.4%). Current yield: 5.9%.

Source:  Genia Turanova, Editor, Leeb Group

Disclosure:  First Trust Multi Asset Diversified Income (MDIV) is in my personal Portfolio

The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 

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