The underlying Zacks Yield Hog Index replicates the strategy of an aggressive equity income investor. 50% or more of the portfolio is made up of classical dividend stocks. The remaining 50% is allocated between various other high yielding equities such as Master Limited Partnerships [MLPs], REITs, preferred stock and closed end funds. The funds benchmark index is the Dow Jones Select Dividend Index, which underlies the iShares Dow Jones Select Dividend ETF (NYSEARCA:DVY). Based on Zacks-commissioned backtesting, the Yield Hog index has the same risk profile as (DVY), but with a higher return. Claymore has prepared a small briefing book, and the index components are available from the AMEX.
I think the best way to think about CVY is to imagine it as an equity income strategy wrapped up in a single share. It's not so much useful for asset allocation as it is for strategy allocation. Now that the sector and index ETF space is fully populated, I expect that we will see more strategic ETFs that embody different strategies that can be used in isolation, or mixed to create optimal portfolios.