ETF Chart of the Day: Multi-Asset Income Fund
June 28th, 2012 at 2:23pm by Paul Weisbruch, Street One Financial
Despite only launching about two months ago, iShares Morningstar Multi-Asset Income Fund (BATS: IYLD) has already made its mark in attracting over $28 million in assets in a relatively short amount of time.
The ETF fits into the “Multi-Asset” or “Diversified Portfolio” categories and tracks an index developed by Morningstar.
The aim of the index methodology is to deliver high current income to the investor and simultaneously present the opportunity for long term capital appreciation. IYLD is actually a “fund of funds” ETF, in that it invests in other listed ETFs that may cover asset classes including equity, fixed income, and alternative assets. [Multi-Asset ETFs]
Charging 60 basis points currently as an expense ratio, most would consider this fund as an “actively managed” approach as well, aiming for out-sized returns from the benchmarks as well as potential risk mitigation and/or lowered portfolio volatility.
Currently, top holdings in IYLD are HYG (iShares High Yield Corporate Bond, 20.08%), EMB (iShares JP Morgan Emerging Markets Bond, 15.26%), TLT (iShares Barclays 20+ Year Treasury Bond, 15.20%), PFF (iShares S&P Preferred Stock, 14.99%), and DVY (iShares DJ Select Dividend, 14.67%).
In limited trading history since the fund inception date of April 16 of this year, IYLD has rallied 2.63%.
iShares Morningstar Multi-Asset Income Fund