Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: AOR, AOA, SWAN, MDIV and YYY

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 16, 2021 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: iShares Core Growth Allocation ETF (AOR - Free Report) , iShares Core Aggressive Allocation ETF (AOA - Free Report) , Amplify BlackSwan Growth & Treasury Core ETF (SWAN - Free Report) , Multi-Asset Diversified Income Index Fund (MDIV - Free Report) and Amplify High Income ETF (YYY - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Multi-Asset ETFs Hitting New 52-Week Highs

The global economy is showing solid recovery, after being hit by the pandemic last year, thanks to a rapid pace of vaccinations and expanded stimulus. This has resulted in significant gains across all asset classes so far this year.

Notably, most indices across the globe are hovering near record highs and are expected to head further higher in the second half of the year on continued economic growth. According to the World Bank, the global economy is expected to expand 5.6% this year — the strongest pace in 80 years (read: Global Economy to See Fastest Growth in 80 Years: 5 ETF Picks).

Among the major economies, the United States is expected to grow 6.8% while China’s economy will likely grow 8.5%. Japan is forecast to post 2.9% growth this year while the economies of the 19 European countries that share the euro currency are collectively expected to expand 4.2%. The emerging market and developing economies as a group are projected to expand 6% this year, supported by higher demand and a spike in commodity prices.

Meanwhile, the fixed income space is showing strength as inflation fears have eased and 10-year Treasury yields have dropped to 1.43%, the lowest level since early March. Commodities are on an unstoppable rally with prices for a wide range of commodities from copper to oil to timber skyrocketing (read: Commodity Prices on an Unstoppable Rally: ETFs to Benefit).

Going forward in the second half of the year, the volatility is likely to increase. This is especially true as summer months are generally characterized by lower volumes and higher volatility that could lead to ups and downs across various asset classes compared to other seasonal trends. As such, the global markets are likely to stay volatile during the coming months and investors need to find out the technique to earn higher returns in a choppy environment.

Thankfully, there are some ETF products which can help investors to overcome these challenges in a diversified way. The products actually belong to the multi-asset family.

Multi-asset ETFs offer huge diversification benefits by investing across different asset classes, which have low correlations thereby reducing overall volatility. These aim to provide a high level of current income with stability and potential for long-term appreciation while avoiding the downside risk of a specific asset class.

In fact, a number of multi-asset ETFs hit new 52-week highs in the last trading session. Any of these could be excellent plays for investors looking to ride out the current trend given their high momentum. We have highlighted five of these that have enough liquidity and AUM.

iShares Core Growth Allocation ETF

This ETF offers a portfolio of equity and fixed income ETFs intended to represent a growth allocation target risk strategy. It holds a basket of 9 funds with broad equity accounting for 60% share and the rest is taken by fixed income.

The product has AUM of $1.8 billion and charges annual fees of 25 bps. It trades in an average daily volume of 109,000 shares and has gained 7.8% so far this year.  

iShares Core Aggressive Allocation ETF

This ETF offers a portfolio of equity and fixed income funds intended to represent an aggressive target risk allocation strategy. It follows the S&P Target Risk Aggressive Index and holds 7 ETFs in its basket. Equity accounts for 79.5% while the rest goes to fixed income.

The fund has amassed $2.1 million in its asset base while trades in an average daily volume of 62,000 shares. It is up 10.7% in the year-to-date timeframe.

Amplify BlackSwan Growth & Treasury Core ETF

This fund follows the S-Network BlackSwan Core Index, which seeks uncapped exposure to the S&P 500, while buffering against the possibility of significant losses. Approximately 90% of the ETF will be invested in U.S. Treasury securities, while approximately 10% will be invested in SPY LEAP Options in the form of in-the-money calls.

The ETF has amassed $765.5 million and trades in an average daily volume of 126,000 shares. It charges 49 bps in annual fees and has added 3.4% this year so far (read: 5 ETF Winners as Treasuries Post Best Week in a Year).

Multi-Asset Diversified Income Index Fund

This product tracks the NASDAQ US Multi-Asset Diversified Income Index, which provides exposure to multiple asset segments, each selected to result in a consistent and high yield for the index. It holds 121 stocks in its basket with dividend-paying equities taking the largest allocation at 23.2%, followed by REITS (21.5%), MLPs (20.8%), high-yield corporate bond ETFs (18.7%), and preferred securities (14.7%).

The fund has amassed $502.8 million in its asset base and trades in an average daily volume of 90,000 shares. It charges 68 bps in annual fees and gained 18.2% so far this year.

Amplify High Income ETF

With AUM of $440.4 million, this ETF is a portfolio of 30 closed-end funds ranked highest overall by the ISE in three criteria: fund yield, discount to net asset value and liquidity. It follows the ISE High Income Index and holds 30 stocks in its basket.

About 22% of the portfolio is dominated by high-yield bond funds, while loan participation and multisector bond funds round off the next two spots with double-digit exposure. The product is the high-cost choice in the space with an expense ratio of 2.45%. It trades in an average daily volume of 238,000 shares and gained 16% in the year-to-date timeframe.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339                                                                        


Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Published in