Potential investors should be aware that these multi-asset ETFs are pumping up yields with their exposure to master limited partnerships and real estate investment trusts, which are typically more risky and volatile. [Multi-Asset ETFs Offer High Yields, But Exposed To Rate Risk]
Nevertheless, the various multi-asset ETFs will have varying levels of risk as no two funds are created alike. For example, CVY includes heavy positions in financials at 36.4% and energy at 21.9%. MDVI includes about a 20% split in junk bonds, preferreds, dividend stocks, MLPs and REITs. IYLD also includes a good tilt toward junk bonds, corporate bonds, mortgage REITs and emerging market bonds. GYLD also includes a 20% split between global alternatives, corporate debt, equities, real estate and sovereign debt. Lastly, YYY, which includes closed-end funds, includes a 70% fixed-income and 30% equity mix. [CEF ETFs to Augment Your Income Portfolio]
“Spend some time looking,” Blanchett said. “And don’t just look at the highest performers.”
For more information on multi-asset strategies, visit our multi-asset ETFs category.
Max Chen contributed to this article.