 CVY
(Zacks Multi-Asset Income Invesco ETF) is an exchange-traded fund that
seeks to track the investment results of the Zacks Multi-Asset Income
Index. The index includes stocks, closed-end funds, real estate
investment trusts (REITs), master limited partnerships (MLPs),
preferred stocks, and convertible securities.
The fund has a
focus on income generation, aiming to provide investors with exposure
to a diversified mix of income-generating asset classes. This can be
attractive to investors seeking to generate income in a low-interest
rate environment, or for those looking to add diversification to their
portfolio beyond traditional equity and fixed-income securities.
As of September 2021, the fund holds over 150 securities, with its
top holdings including the Alerian MLP ETF, the PIMCO Dynamic Credit
and Mortgage Income Fund, and the AT&T 5.35% Preferred Stock. The fund
is well-diversified across sectors, with its largest sector exposure
in Financials, followed by Real Estate and Energy.
CVY charges
a reasonable expense ratio of 0.72%, which is competitive compared to
other similar ETFs in the category. The fund offers a dividend yield
of approximately 4%, which can provide attractive income for
investors. However, it is important to note that the yield is not
guaranteed and may fluctuate over time.
Investors should also
be aware that CVY may have higher volatility compared to traditional
fixed-income securities due to its exposure to non-traditional
income-generating asset classes. As with all investments, it is
important to carefully consider your investment objectives, risk
tolerance, and financial situation before investing in CVY or any
other security.
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