Chillin' out till it needs to be funded
Multi Asset Yield Funds go one step further on Balanced Equity/bond funds with High yield Investments, Real Estate, Limited Partnerships in alt Assets/PE funds and preferred stock to assure more classes of assets and fatten the regular income stream One could probably add Copper and Silver too or Gold and Crude when the cycle turns at a later stage probably. Funds launched by Morningstar, SSGA(SPDR) and Arrow according to Marketwatch rely on Fund of fund structures in these ETFs or otherwise buy into asset yield where available to package income for the investor. The ETFs are listed as IYLD, GYLD and INKM (SPDR ETF of Funds)
These ETFs are so new that there is no performance data to speak of. However, their holdings provide some insight into their investment “character.”
GYLD INKM IYLD Investment Grade Debt 19.67% 31.42% 41.09% High Yield Debt 20.94% 9.99% 19.60% U.S. Equities 4.17% 26.21% 21.20% Ex-US Developed Market Equities 27.22% 19.54% 2.89% Emerging Market Equities 8.24% 4.74% 0.41% Preferred Stock & Convertible Bonds 0% 7.99% 14.56% Trusts & MLPs 19.77% 0% 0%
Based on these weightings, compiled in a May 15 survey of the fund profiles on the sponsors’ web sites, the iShares ETF appears to be most conservative of the three. It has the highest weight in investment-grade bonds and a tiny exposure to non-U.S. stocks. This survey classified REITs as stocks.
Meanwhile warehouses in Shanghai continue to reduce Copper holdings and local exchange movements show Copper is likely ready for a stronger move up this time after most of the year’s gains were wiped out in the last 6 weeks.