Changes for a Popular Multi-Asset ETF

The Guggenheim Multi-Asset Income Index ETF (NYSEArca: CVY) is one of the largest multi-asset exchange traded funds with over $511 million in assets under management.

Dividend stocks, high-yield bonds, MLPs and REITs remain popular choices for income-staved investors. ETFs that offer one-stop shopping for yield-starved investors, commonly known as multi-asset ETFs, are also becoming part of the income lexicon. [All In One ETFs With Attractive Yields]

In a low interest rate environment with a trailing 12-month dividend yield of 6.8%, it is not surprising that CVY and other multi-asset ETFs have become popular with income investors in recent years, but CVY is making a change investors should be aware of.

“A new prospectus states that Canadian Royalty Trusts will no longer be part of the index. Additionally, ‘momentum’ will become one of the quantitative filters used in the securities selection process, joining yield, company growth, liquidity, relative value and ‘other factors,’” reports Chris Dieterich for Barron’s. http://blogs.barrons.com/focusonfunds/2015/12/08/guggenheim-tweaks-smart-beta-multi-asset-income-etf/

CVY tracks the Zacks Multi-Asset Income Index, which “uses quantitative analysis to select stocks from the Index universe to obtain a representative sample of stocks that resemble the Index in terms of key risk factors, performance attributes and other characteristics,” according to Guggenheim.