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Guggenheim Multi-Asset Income ETF (CVY)

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  • Fri, Jan. 9, 12:56 PM
    • January 7th was the first trading date for the Master Income ETF (NYSEARCA:HIPS), which will focus on high-income pass-through securities.
    • "Pass-Through Securities include an array of corporate organizations which have the common feature that they are exempt from U. S. corporate income tax on the condition that they distribute substantially all of their profits to shareholders," as stated in a press release.
    • The TFMS HIPS 300 Index utilized by HIPS features exposure to REITs, closed-end funds, master limited partnerships and business development companies.
    • Other High Yield ETFs: CVY, DVHL, MDIV, IYLD, DVHI
     
     
    | 6 Comments
  • Mar. 5, 2014, 12:04 PM
    • The AdvisorShares YieldPro ETF (YPRO), a joint venture with The Elements Group, launched this morning.
    • This ETF will hold both long and short term fixed income investments, selected after a screening for yield, volatility, volume and relative strength.
    • Noah Hamman, chief executive officer of AdvisorShares, stated in a press release; "in the current interest rate environment where many investors and advisors actively hunt for the dual goals of yield and mitigation of risk, we feel YPRO may help allow the flexibility to potentially achieve both objectives."
    • Other multi asset bond ETFs: CVY, PCEF, CEFL, MDIV, IYLD, YYY, GYLD, DVHL, HGI, INKM, DVHI, YDIV, GCE, RIGS
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  • Dec. 12, 2013, 11:29 AM
    • The ETRACS Monthly Pay 2xLeverage Closed-End Fund ETN (CEFL) features a double-exposure strategy focused on closed-end funds and will shoot off a dividend of 19.4%.
    • This newest addition to the UBS lineup has been described as a double-exposure version of the YieldShares High Income ETF (YYY), which launched earlier this year and has a yield of 10.4%.
    • Other multi-asset ETPs: CVY, PCEF, MDIV, IYLD, GYLD, INKM, DVHL, GCE, DVHI, RIGS, YDIV
    | 1 Comment
  • Nov. 13, 2013, 9:17 AM
    • Launching tomorrow from UBS is the Etracs Monthly Pay 2x Leveraged Diversified High Income ETN (DVHL) - the double-exposure version of its DVHI which opened in September.
    • The tracked index includes MLPs, BDCs, REITs, and preferred equity, among other securities, and is split 60/40 between equity and bonds.
    • Multi-asset income funds have become a popular product in the last 18 months, the largest being Guggenheim's CVY with AUM of nearly $1.2B.
    • Others: MDIV, INKM, IYLD, GYLD, HGI.
    • CVY and the others are ETFs, while UBS's offerings are ETNs.
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  • Oct. 23, 2013, 2:58 PM
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  • Oct. 21, 2013, 3:05 PM
    • Dividend stocks have historically worked because of their value tilt, says ace researcher and portfolio manager Mebane Faber. A rash of fund offerings have distorted the asset class though - typically trading at a 20-40% valuation discount to the broad market, high yielders from defensive sectors are now at premiums, and record premiums at that. Buyer beware.
    • Faber himself runs the actively-managed Cambria Shareholder Yield ETF (SYLD), which adds buybacks and debt repayments to dividends to create a "shareholder yield" from which selections are made.
    • Dividend ETFs: VIG, FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    | 3 Comments
  • Oct. 13, 2013, 9:01 AM
    • ETFs which have expanded their view of "yield" to include shareholder-friendly activity such as buybacks and paying down debt continue to outperform the general dividend universe as well as the broader market.
    • Mebane Faber's 5-month old $122M Cambria Shareholder Yield ETF (SYLD) has a forward dividend yield of 2.9% - slightly higher than VIG or SDY, and a bit less than DVY - but what Faber calls "a net buyback yield" of 5.6%. It's up 9.2% in its short history vs. 2% or less for the other funds and 3% for the S&P 500.
    • TrimTabs' Float Shrink ETF (TTFS) goes even further - disregarding dividends entirely to pick 100 of the Russell 3000 companies rapidly reducing outstanding shares while also screening for profitability and low debt. And reducing shares doesn't just mean buybacks: Carl Icahn's Herbalife investment put more than 15% of the stock outside of the free float according to TTFS' managers, thus allowing its inclusion in the fund. Sirius XM Radio was added after Liberty Media's decision to convert its preferred stake into common. The fund's nimbleness makes it pricey with a 0.99% expense ratio. It's ahead of the S&P 500 by more than 1000 bps YTD.
    • See also: PowerShares' Buyback Achievers Fund (PKW), the oldest and largest of the group, and ahead of the S&P by 1300 basis points this year.
    • Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
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  • Oct. 1, 2013, 9:25 AM
    | 4 Comments
  • Sep. 12, 2013, 1:39 PM
    • Dividend payers may be a good place to hide out from rising interest rates, but those stocks sporting the highest yields - telecoms and utilities - tend to have slow payment growth, making them less-attractive as rates rise. Checking back to the 1994 bond bear market, telecoms and utilities were among the market's worst performers.
    • Better to shop for modest payers, but above-average payment growth. Barron's screens for those characteristics combined with reasonable overall valuation and turns up three names: Boeing (BA), CVS Caremark (CVS), and GE.
    • Certain dividend ETFs employ this strategy as well, with Vanguard's Dividend Appreciation (VIG) - almost zero exposure to telecoms and utilities  - and WisdomTree's U.S. Dividend Growth ETF (DGRW) coming to mind. Others include DGRS, DNL, EMDG, DGRE.
    • Other dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    • Telecom and utility ETFs: IYZ, XTL, VOX, LTL, TLLIDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
    | 4 Comments
  • Aug. 21, 2013, 8:47 AM
    • Investors have been overpaying for dividend stocks while undervaluing those firms buying back shares, Oakmark's Bill Nygren tells the crew at Fast Money. Investors should treat both the same, but the stocks of repurchasers aren't as expensive, he says.
    • Previous: Buyback ETFs outpacing market and dividend funds.
    • Among his favorite picks are Bank of America (BAC) and JPMorgan (JPM). "What we see here is really low P/Es relative to the market and relative to their own history ... These companies sell at about 8x the level that we think they'll earn after the legacy mortgage costs stop going through the income statement."
    • Other top picks are Apache (APA) - selling assets for close to full value and buying back shares - Haliburton (HAL) - which has tendered to repurchase 4-5% of its shares - and DirecTV (DTV) - also buying back stock.
    • Buyback ETFs: PKW, TTFS.
    • Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    | 8 Comments
  • Aug. 20, 2013, 4:13 PM
    • There are four key points writes ukarlewitz in The Fat Pitch:
    • Retail and professionals have already made a big move out of fixed income. Trim Tabs estimates bond fund and ETF outflows in August will be the 4th largest ever - nearly 3% of assets have left in 3 months. Individual investors' holdings of bonds fell in July to a 4-year low and are likely lower now. For professionals, a BAML survey has 97% believing yields will be higher a year from now.
    • Fund manager weightings are at the bottom of a long-term range. A further big move down would be unprecedented. 57% are underweight bonds, the highest since the 2011 bottom in bond prices.
    • The recent change in yields looks to be out of proportion to actual economic data. The market is behaving as if the economy is at a 1987, 1995, or 2004 inflection point where unemployment falls low enough to send rates shooting higher. It just isn't so yet.
    • Bond yields are close to stabilizing or maybe turning lower - positive not just for TLT, but for other yield assets like dividend stocks (DVY), and mortgage REITs (REM).
    • Long-duration Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.
    • Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    • Mortgage REIT ETFs: MORT, MORL.
    | 17 Comments
  • Aug. 19, 2013, 1:06 PM
    • Dividend ETFs may be more popular, but funds focused on companies returning capital to shareholders via buybacks are among the top performers of 2013. Among the group is the PowerShares Buyback Achievers ETF (PKW), and AdvisorShares TrimTabs Float Shrink ETF (TTFS).
    • PKW - with expenses of 0.71% after a fee waiver - only buys companies who have repurchased at least 5% or more of its outstanding shares in the past year. TTFS - with expense ratio of 0.99% - too focuses on smaller floats and adds profitability and balance sheet strength to its algorithm. The two have outperformed the DVY by more than 1000 bps YTD.
    • Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    | 4 Comments
  • Jun. 25, 2013, 3:34 PM
    First Trust sets in regulatory motion the bringing to market of the International Multi-Asset Diversified Income Index Fund to be comprised of 5 non-U.S. sectors: dividend stocks, REITs, preferreds, infrastructure companies, and fixed-income ETFs. It will join a growing group of ETFs looking to bring U.S. investors maybe more income than they can get domestically. Others include CVY and MDIV.
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  • Jun. 4, 2013, 12:14 PM
    Popular dividend ETFs - HDV, VYM, VIG, SDY, DVY among them - have fared worse than the SPY as interest rates have risen of late. Credit Suisse narrows the risk down further, identifying 20 stocks with the biggest share of their float held by dividend ETFs. This basket includes Cincinnati Financial (CINF) and Pitney Bowes (PBI) and it's off 3.4% since Ben Bernanke's May testimony, twice as much as the broad market. We'll post the other 18 as they come available.
    | 10 Comments
  • May 29, 2013, 10:10 AM
    Vanguard's popular Dividend Appreciation ETF (VIG) gets even cheaper, the annual fee dropping to 0.10% from 0.13%. It's the 56th Vanguard ETF to drop fees this year vs. a total of 65 run by the company. Competitors include: DVY, SDY, VYM, HDV, DLN.
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  • May 24, 2013, 12:45 PM
    Multi-asset income ETFs are here to stay, writes Paul Britt, as Guggenheim's CVY crosses $1B in AUM. It's been around since 2006, but a new entrant, MDIV has pulled in $440M in less than a year. These income funds have no mandate in their search for yield and roam across dividends (DVY), high-yield (HYG), REITs (IYR, VNQ), and MLPs (AMJ) as necessary. One drawback is their somewhat high expense ratios - in the 60-80 bp range, compared, for example, to DVY at 40 bps. Other M-A ETFs: INKM, IYLD, GYLD, HGI.
    | 2 Comments
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CVY Description
The Guggenheim/Zacks Multi-Asset Income Index ETF (NYSE:CVY), the “Fund”, seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Zacks Multi-Asset Income Index (the "Zacks Multi-Asset Income Index" or "Index"). The Fund expects to use a sampling approach in seeking to achieve its objective. Sampling means that Guggenheim Advisors, LLC (the "Investment Adviser") uses quantitative analysis to select stocks from the Index universe to obtain a representative sample of stocks that resemble the Index in terms of key risk factors, performance attributes and other characteristics. However, the Fund may use replication to achieve its objective if practicable. The Investment Adviser seeks a correlation over time of 0.95 or better between the Fund’s performance and the performance of the Index. A figure of 1.00 would represent perfect correlation. The Fund, using a low cost “passive” or “indexing” investment approach, seeks to replicate, before fees and expenses, the performance of the Zacks Multi Asset Income Index. The Zacks Multi Asset Income Index 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, Master limited partnerships (“MLPs”), American depositary receipts ("ADRs") paying dividends, Closed-end funds, Real estate investment trusts (“REITs”) & Traditional preferred stocks. The companies in the universe are selected using a proprietary methodology developed by Zacks Investment Research, Inc. ("Zacks" or the “Index Provider”).
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