Recently the Multi-Asset category has attracted some asset inflows via CVY (Guggenheim Multi-Asset Income, Expense Ratio 0.60%), which has reeled in >$400 million in new assets year to date, and most of this coming
in recent days.

Tracking the Zacks Multi-Asset Income Index which is designed to consist of 125-150 securities that according to fund literature span from “U.S. listed common stocks, American depositary receipts (“ADRs”) paying dividends, REITs, MLPs, Closed-end funds, Canadian Royalty Trusts, and Traditional Preferred Stocks.”

Top holdings are currently LINE (1.38%), AZN (1.17%), WMB (1.13%), PGH (1.13%), and ROYT (1.13%). One can see the clear exposure to MLP and Royalty Trusts for example with just a quick scan through some of the top holdings within the basket of 149 names that are currently owned.

CVY sports a 5.46% yield currently as well, which has likely attracted investors (currently $770 million in assets under management), and within the “All Cap” or “Multi-Cap” category, this fund currently stands at number eight in terms of asset size behind larger ETFs such as VTI (Vanguard Total Stock Market, Expense Ratio 0.05%) and IWV (iShares Russell 3000 Index, Expense Ratio 0.21%).

In the “Large Cap Value Equity” category, CVY is number fifteen in terms of asset size behind larger funds such as IWD (iShares Russell 1000 Value, Expense Ratio 0.22%) and VIG (Vanguard Dividend Appreciation, Expense Ratio 0.10%). When jolts of volatility, particularly tied to Emerging Markets and/or higher beta segments of the market ripple through like they did yesterday, we often see bids Large Cap Value names as a flight to relative quality and yield if nothing else.

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