Arrow Investment Advisors, the Maryland-based boutique investment manager with an emphasis on alternative investments, said Monday its Arrow Dow Jones Global Yield ETF (GYLD) has topped $100 million in assets under management in less than two years of trading.
GYLD can be considered a multi-asset ETF as it holds a basket of income-generating equity and fixed-income securities from non-traditional sources. Each of the five asset classes held by the ETF receive weights of about 20%. Those include international alternatives, global corporate bonds, stocks, real estate and global sovereign debt. [A High-Yielding Multi-Asset ETF]
“Despite an uptick in 2013, interest rates remain at historical lows and income-oriented investors continue to seek out competitive yield,” says Joseph Barrato, CEO and Director of Investment Strategy at Arrow, in a statement. “At Arrow, we believe in a global approach to yield that incorporates both traditional and alternative sources of income, along with exposure to growth opportunities. GYLD may offer a compelling alternative for those who wish to generate yield, without necessarily sacrificing returns.”
To be precise, GYLD had $101.7 million in assets as of March 7 and a 30-day SEC yield of almost 6.3%, according to issuer data.
While 39% of GYLD’s country weight is allocated to the U.S., the fund does offer a solid mix of developed and emerging markets exposure. Other top-10 country weights include Australia, South Africa, Singapore, France, Venezuela and Turkey. Despite geopolitical tensions and currency issues in Turkey and Venezuela, GYLD has traded slightly higher this year. [ETFs to Watch After the Venezuela Downgrade]
“Investors are beginning to anticipate the impact of a rising interest rate environment and declining bond prices,” says Barrato. “GYLD’s equally-weighted exposure to multiple asset classes may complement traditional fixed income investments that tend to be more vulnerable to rising rates,” added Barrato.
Arrow Dow Jones Global Yield ETF
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
- fixed income investments
- alternative investments