Posted on 06/19/2012
As an expansion on yesterday's topic on generating additional income in your portfolio, today we are going to bring one more idea to the table while achieving the desire for perceived safety and yield, by focusing on lower beta, dividend yield type securities. That is the Guggenheim Multi-Asset Income ETF (CVY).
CVY is based off of the Zacks Multi Asset Income Index, which is comprised of approximately 125 to 150 securities selected, based on investment and other criteria, from a universe of domestic and international companies. The universe of securities within the Index includes: U.S.-listed common stocks, American depositary receipts ("ADRs") paying dividends, real estate investment trusts (“REITs”), master limited partnerships (“MLPs”), closed-end funds, Canadian royalty trusts, and traditional preferred stocks. When looking at the current sector breakdown of CVY, we see it overweighted toward Financials, with a weighting of 32.83%, with Energy and Utilities at roughly 18% and 10%, respectively. And as mentioned, CVY offers a very attractive dividend yield of 5.39%, well above anything you can find in the fixed income space.