Multi-Asset ETFs: The Bets Of The Hour

Post Brexit, the yield on the benchmark U.S. 10-year Treasury note even dropped to record lows, meaning that the income prospect is pretty low in this segment. On August 8, 2016, the U.S. benchmark Treasury yield was 1.50%.

Should You Diversify Through Multi-Asset ETFs?

In such a situation, uncertainty may pull the strings of both equities and bonds’ investing. As a result, diversification may earn investors some surety in terms of returns with lower risks. Thankfully, there are some multi-asset ETF products, which can help investors to overcome these challenges (read: Multi-Asset ETFs to Counter Volatility).

Notably, the multi asset strategy looks to boost returns and lower overall volatility in the portfolio. These products normally provide a high level of current income and shun downside risks of a specific asset class at the same time. These products cater to various asset classes (equity, fixed income, and alternative securities), which have low correlation to each other.

Investors should also note that a suite of iShares multi-asset ETFs having exposure to both equities and fixed-income hit 52-week highs on August 10, 2016. These ETFs are iShares S&P Moderate Allocation ETF AOMiShares S&P Conservative Allocation AOK and iShares S&P Growth Allocation ETF AOR.

Apart from the trio, investors can take a look at the ETFs mentioned below for juicy yields and capital gains too.

Arrow Dow Jones Global Yield ETF GYLD

This fund provides exposure to across five global areas – sovereign debt, real estate, equities, corporate debt and alternatives. The product gained over 18% so far this year (as of August 11, 2016). The fund yields about 8.09% annually (as of August 11, 2016).

YieldShares High Income ETF YYY

This $103.3-million fund definitely has a high expense ratio of 1.86% but yields about 9.85 annually. The fund holds 30 closed-end funds ranked the highest overall by the ISE on the basis of three criteria namely fund yield, discount to net asset value and liquidity (read: High Income ETFs Worth Their High Costs).

Around 68% of the fund is targeted at debt securities while the rest are in equities. The fund is up about 16% so far this year (as of August 11, 2016).

View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.