Monthly Dividend ETFs To Buy #5: iShares Morningstar Multi-Asset Income ETF (IYLD)
As interest rates have hovered near zero for what seems like an eternity, investors have plunged head-first into a variety of high dividend-paying assets classes. Everything from junk and convertible bonds to infrastructure assets are now becoming portfolio staples.
Tracking and creating positions in all of these “weird” asset classes can be a daunting task.
Which is why the monthly dividend paying iShares Morningstar Multi-Asset Income ETF (IYLD) may seem like a godsend. IYLD is a fund of funds that holds all of these various high yielding asset classes.
The ETF is quasi-actively managed by BlackRock (BLK) and shifts its portfolio of underling iShares ETFs around to create an asset allocation of roughly 60% bonds, 20% stocks, and 20% alternative income sources. Top holdings currently include the iShares iBoxx $ High Yield Corporate Bond (HYG) and the iShares High Dividend (HDV).
All in all, IYLD’s mix of ETFs creates a juicy 6% yield that’s paid monthly. All for expenses of 0.60%.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.