As benchmark Treasury yields continue to flux up and down, fixed income investors can achieve higher yielding asset exposure with the Global X SuperDividend Alternatives ETF (ALTY).

As opposed to safe haven debt like Treasury yields, ALTY gives fixed income investors exposure to a variety of sources, such as real estate and business development companies (BDCs).

ALTY seeks to track the price and yield performance of the Indxx SuperDividend® Alternatives Index. The underlying index is comprised of securities that rank among the highest dividend-yielding securities in each eligible category of alternative income investments, at the time of index reconstitution, as defined by the index provider.

  • High Income Potential: ALTY invests in among the highest yielding securities across a variety of alternative asset classes, potentially increasing a portfolio’s yield.
  • Monthly Distributions: ALTY makes distributions on a monthly basis, providing a regular source of income for a portfolio.
  • An Alternative Solution: ALTY invests in four different alternative income segments, including real estate, MLPs and infrastructure, private equity and BDCs, and fixed income and derivative strategies, potentially serving as a portfolio’s entire alternatives allocation.

ALTY Chart

ALTY Chart

A Prime Choice as Treasury Yields Dip

Yields laid an egg the Monday after Easter as benchmark Treasury notes headed lower. Per a Bloomberg article, “the dollar slid against most of its major peers Monday and the 5-year Treasury note’s yield pulled back from a one-year high amid skepticism that U.S. economic data are strong enough to prompt a shift by the Federal Reserve.”

Meanwhile, the greenback also retreated, as equities jumped higher with the Dow Jones Industrial Average gaining over 370 points in Monday’s session.

The Bloomberg Dollar Spot Index slumped as much as 0.4% to the lowest in two weeks. The 5-year Treasury yield gave back about half of Friday’s eight-basis-point increase, which unfolded during a holiday-shortened session with U.S. stocks closed in response to stronger-than-forecast March employment data. The reversal occurred despite a bigger-than-expected increase in the March ISM Services Index to a record high and gains for U.S stocks.

“With the U.S. dollar still trading as a safe haven currency, higher equities have pushed the dollar lower against a broad range of currencies,” Wells Fargo Securities LLC’s Erik Nelson said via email.

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