3. Multi-Asset ETFs. If you believe like I do that the 10-year yield will be closer to 2.75% by year end, as opposed to the economist average of 3.4%, then you will probably be able to count on the income stream from multi-asset income producers like First Trust Multi-Asset (MDIV). Granted, MDIV has demonstrated a potential for erratic price movement of its own. Yet even when the 10-year spiked form 1.4% to 2.75% in 2013, MDIV’s drawdown of 8% was offset by an index yield close to 6.5% and capital appreciation when rates later stabilized. I would not expect MDIV to do much but offset losses if the 10-year yield does climb to 3.4%-3.5% by year’s end; that said, MDIV has the chance to repeat its performance of 10% annualized total return if 10-year yields remain contained below the 3.0% mark.
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