Published Wed, 30 Sep 2020 10:57:03 -0400 on Seeking Alpha
Seeking AlphaETF AnalysisIYLD: Balanced Bond And Equity ETF - 5.5% Yield - Diversified HoldingsSep. 30, 2020 10:57 AM ET|| About: iShares Trust - iShares Morningstar Multi-Asset Income ETF (IYLD)by: Juan de la HozJuan de la Hoz CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryIYLD invests in a diversified portfolio of index funds.
The fund focuses on fixed income funds, and yields 5.5%.
IYLD is targeted towards more conservative retirees or income investors.
The iShares Morningstar Multi-Asset Income ETF (IYLD) is an ETF investing in a portfolio of high-yield fixed income, equity, and alternative income index funds. IYLD's investment strategy, diversified holdings, and comparatively strong 5.5% yield are particularly appropriate for more conservative or risk-averse investors and retirees. Investors who take a more hands-on approach to their investments, which I believe includes many, perhaps most, of Seeking Alpha's readers, might do better with their own diversified portfolio, in which IYLD could play a small diversification role.
Sponsor: BlackRock Dividend Yield: 5.5% Expense Ratio: 0.6% Total Returns CAGR (Inception): 3.9% Fund Overview
IYLD is an ETF investing in a portfolio of BlackRock fixed income, equity, and alternative income index funds. More specifically, IYLD invests in the following types of funds:
(Source: IYLD Index Methodology)
Asset class weights are as follows:
Equity: 20% Fixed Income: 60% Alternative: 20% Portfolio weights for the different funds themselves are calculated using a mean variance optimization equation, which maximizes yields and (expected) returns while minimizing volatility. Interested readers can take a closer look at these calculations and the index methodology here, although these processes are quite common and reliable, if a bit of a black box.
IYLD's holdings are as follows:
(Source: IYLD Factsheet)
IYLD's holdings provide... Read more