Arrow Funds Targets Global Yield for ETF Debut
May 9th 2012 at 9:33am by Tom Lydon
Arrow Funds has launched its first exchange traded fund which gives investors varied exposure to income sources from different asset classes. As short-term rates are hovering around zero in the United States, investors are searching for investments that have decent yields.
“The prevailing low interest rate environment has made it extremely challenging for income oriented investors to generate substantial yields via traditional means, ” said Joseph Barrato, CEO of Arrow Investment Advisers. “The Arrow Dow Jones Global Yield ETF provides an ETF solution designed to boost the yield play in an investment portfolio.” [PIMCO Rolls Out Global TIPS ETF]
The Arrow Dow Jones Global Yield ETF (NYSEArca: GYLD) has a global approach to seeking yield from several assets such as common stocks, preferred stocks, depository receipts, corporate bonds, sovereign bonds, REITs, royalty trusts and master limited partnerships, reports Alex Ulam for Index Universe.
GYLD has an expense ratio of 0.75% and will track the Dow Jones Global Composite Yield Index, according to the press release. The index will re-balance quarterly and the benchmark has shown a competitive yield range of about 7%-9% over the past year. [iShares to Launch Emerging Market Corporate Bond ETF]
“We developed the Dow Jones Global Composite Yield Index in response to the strong demand for yield in the current market environment,” Michael A. Petronella, President of Dow Jones Indexes, said. “This new index is an innovative and diversified measure of yield across multiple asset classes that offer exposure to traditional and alternative sources of income.” [iShares Lists New High Yield ETFs]
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.