IYLD “was set up and runs with a conservative portfolio to achieve returns. This ETF is a great option for income investors looking for yield across asset classes,” according to a Seeking Alpha post. “…if you are a believer that the Federal Reserve is not going to raise interest rates until September or December, then this probably an ETF worth looking at. However, just be aware that there is some interest rate risk here due to bond duration and quality.”
IYLD’s sensitivity to rising rates has been made evident. When 10-year yields spiked in 2013, the ETF gained just 0.4%. When those yields plunged in 2014, IYLD jumped 10.4%. The ETF’s 2013 volatility was also 330 basis points higher than last year.
The fund,which has a 30-day SEC yield of 5.98%, is up 3% this year.
iShares Morningstar Multi-Asset Income Index ETF
Tom Lydon’s clients own shares of HYG and LQD.