Guggenheim International Multi-Asset Income (HGI).
This exchange-traded tracker invests at least 90% in securities that constitute the Zacks International Multi-Asset Income Index. There are roughly 155 investments selected from a universe of global real estate trusts (REITs), American Depository Receipts (ADRs), master limited partnerships (MLPs), closed-end funds (CEFs), preferreds and royalty trusts. The 12-month yield of 4% is a highlight for those who have chosen to participate. However, the fund’s $30 million in assets under management and low trading volume could make it difficult for stop-limit order advocates to exit the position at a desired price point.
Guggenheim contends that HGI is geared to outperform the MSCI EAFE Index. Over the last 5 years, HGI has annualized at 13.15% whereas iShares MSCI EAFE (EFA) has compounded at 11.7% per year. Although that may sound like a venerable advantage, since HGI’s inception on 7/11/2007, both funds are even at 0%. Regardless, those that might prefer HGI should make up their own mind on the appropriateness of the comparison as well as the attractiveness of the annual cash flow.