SPDR SSGA Income Allocation ETF (NYSEArca: INKM) holds SPDR Barclays Capital Long CorpTerm Bond ETF (NYSEArca: LWC) and SPDR Barclays Capital High Yield Bond ETF (NYSEArca: JNK).
Currently, multi-asset ETFs are generally used for tactical investments in a long term strategy. The pre-packaged ETF is not used as a day trading tool at this time.
“Advisers are under a lot of pressure to provide income,” Sanjay Arya, Senior Vice President at Morningstar said. For this reason, the need for multi-asset income-focused ETFs is a trend in the making. [Europe Woes Sap High-Yield Bond ETF Demand]
Tisha Guerrero contributed to this article.