The new ETF is a fund of funds, which means that it holds ETFs as its underlying components, instead of securities of individual companies.
Specifically, DWIN includes about an equal split between five components, including PowerShares Preferred Portfolio (NYSEArca: PGX), PowerShares Build America Bond Portfolio (NYSEArca: BAB), PowerShares High Yield Equity Dividend Achievers Portfolio (NYSEArca: PEY), Powershares Global Short Term High Yield Bond Portfolio (NYSEArca: PGHY) and PowerShares Emerging Markets Sovereign Debt Portfolio (NYSEArca: PCY).
Individually, PGX has a 5.93% 12-month yield, BAB has a 4.53% 12-month yield, PEY has a 3.60% 12-month yield, PGHY has a 4.64% 12-month yield and PCY has a 5.51% 12-month yield.
“Despite increased volatility in financial markets, we recognize that investors still expect better than average returns, which has become increasingly difficult for income investors looking for yield,” Dan Draper, Head of Invesco PowerShares, said in the press release. “This new multi-asset income solution helps investors navigate volatility using a sub-sector ETF rotation strategy covering a universe of seven income producing segments including treasuries.”
According to the prospectus, DWIN may rotate into a range of income-generating assets, including U.S. Treasuries, domestic and international bonds, dividend paying equities, preferred stocks, real estate investment trusts and master limited partnerships. The index may also favor overweighting U.S. Treasuries and reduce holdings to less than five components. Underlying components are evaluated on a monthly basis.