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Is Guggenheim Multi-Asset Income ETF (CVY) a Hot ETF Right Now?
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Launched on 09/21/2006, the Guggenheim Multi-Asset Income ETF (CVY - Free Report) is a smart beta exchange traded fund offering broad exposure to the Total Market (U.S.) ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Invesco Powershares. It has amassed assets over $292.13 M, making it one of the larger ETFs in the Total Market (U.S.) ETFs. CVY seeks to match the performance of the Zacks Multi-Asset Income Index before fees and expenses.
The Zacks Multi-Asset Income Index is comprised of approximately 125 to 150 stocks selected, based on a multi-factor proprietary model, from a universe of domestic and international companies, including U.S.-listed common stocks, ADRs paying dividends, REITs, MLPs, closed-end funds and traditional preferred stocks.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for CVY are 0.79%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.99%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Phillips 66 (PSX - Free Report) accounts for about 1.28% of the fund's total assets, followed by Valero Energy Corp (VLO - Free Report) and Bank Of America Corp (BAC L).
The top 10 holdings account for about 11.39% of total assets under management.
Performance and Risk
So far this year, the ETF has gained about 0.49%, and is up roughly 11.87% in the last one year (as of 05/23/2018). CVY has traded between $20.64 and $23.39 in the past 52-week period.
The ETF has a beta of 0.86 and standard deviation of 12.72% for the trailing three-year period. With about 148 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Guggenheim Multi-Asset Income ETF (CVY) a Hot ETF Right Now?
Launched on 09/21/2006, the Guggenheim Multi-Asset Income ETF (CVY - Free Report) is a smart beta exchange traded fund offering broad exposure to the Total Market (U.S.) ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Invesco Powershares. It has amassed assets over $292.13 M, making it one of the larger ETFs in the Total Market (U.S.) ETFs. CVY seeks to match the performance of the Zacks Multi-Asset Income Index before fees and expenses.
The Zacks Multi-Asset Income Index is comprised of approximately 125 to 150 stocks selected, based on a multi-factor proprietary model, from a universe of domestic and international companies, including U.S.-listed common stocks, ADRs paying dividends, REITs, MLPs, closed-end funds and traditional preferred stocks.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for CVY are 0.79%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.99%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Phillips 66 (PSX - Free Report) accounts for about 1.28% of the fund's total assets, followed by Valero Energy Corp (VLO - Free Report) and Bank Of America Corp (BAC L).
The top 10 holdings account for about 11.39% of total assets under management.
Performance and Risk
So far this year, the ETF has gained about 0.49%, and is up roughly 11.87% in the last one year (as of 05/23/2018). CVY has traded between $20.64 and $23.39 in the past 52-week period.
The ETF has a beta of 0.86 and standard deviation of 12.72% for the trailing three-year period. With about 148 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.