SPDR SSgA Income Allocation ETF (NYSEArca: INKM), an active fund designed to provide investors with yield, experienced a massive spike in trading volume on Tuesday.
A large print in INKM “looked to be a sale of the actively managed ETF of ETFs,” WallachBeth Capital said in a note.
Some investors have been dumping high-yielding sectors as interest rates move up. [Rising Interest Rates are Hurting These ETFs the Most]
The ETF is currently paying a yield of about 4%.
“We’ve seen interest in INKM from taxable institutional pools of assets that want a steady stream of income with tax efficiency,” said Robert Trumbull, head of institutional ETF sales at State Street Global Advisors, in an interview earlier this year. [Multi-Asset ETFs Yielding Over 5%]
The fund invests in other ETFs. Its top three holdings are SPDR S&P Dividend ETF (NYSEArca: SDY), SPDR Barclays Long Term Corporate Bond ETF (NYSEArca: LWC) and SPDDR Wells Fargo Preferred Stock ETF (NYSEArca: PSK).
Other ETFs in the category include Guggenheim Multi-Asset Income ETF (NYSEArca: CVY), iShares Morningstar Multi-Asset Income Index Fund (NYSEArca: IYLD) and Arrow Dow Jones Global Yield ETF (NYSEArca: GYLD).
“Multi-asset income ETFs are getting more attention as dividend-paying stocks face competition for investors’ dollars from rising yields in the bond market,” wrote John Prestbo, former executive director of Dow Jones Indexes, in a recent MarketWatch report.
SPDR SSgA Income Allocation ETF
