IYLD has a trailing 12-month yield of 5.9%, but the ETF also has its own sensitivity to U.S. interest rate changes as longer-dated Treasuries and mortgage REIT ETFs combine for almost 29% of IYLD’s weight.

“A bond-heavy approach weighed on IYLD last year, and it was up only 1 percent. Its other notable downside is a lack of exposure to MLPs and preferred securities,” according to Balchunas.

IYLD is up 5.5% this year, helped in large part by HDV hitting a series of new all-time highs and the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) rising 9%. [Long-Term Bond ETFs Topping Stocks]

First Trust NASDAQ Multi-Asset Diversified Income Index Fund

Tom Lydon’s clients own shares of CVY and TLT.

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