A Diversified ETF Yielding Nearly 6%


An ETF that is making a name for itself in a little under a year of live trading history comes from First Trust, and fits into the “Multi-Asset” or “Diversified Portfolio” categories.

MDIV (First Trust Multi-Asset Diversified Income, Expense Ratio 0.60%) is one of the best performers year to date in the category, and volume has swelled to more than 213,000 shares on an average daily basis which is quite respectable for a newer fund.

The ETF is challenging all-time highs as volume has certainly stepped up in the past month or so, and this product is designed to track the NASDAQ Multi-Asset Diversified Income Index, which invests in a broad array of income producing securities (read yield), including domestic and internationally listed equities, REITS, MLPs, preferred stocks as well as a household name ETF, HYG (iShares High Yield Corporate Bond, Expense Ratio 0.50%).

With a yield of 5.59%, top holdings in MDIV are currently HYG, NLY, CMO, CYS, and HTS, which collectively make up more than 20% of the overall portfolio.

In fact, HYG is the top holding at the moment by a wide margin, carrying a 14.27% weighting versus the next largest holding NLY (1.68%), and the ETF holds 123 individual positions at the moment. Even being rather new to the marketplace, MDIV has reeled in north of $248 million in assets, reflective of the appetite of portfolio managers for above average yield in the marketplace.

First Trust Multi-Asset Diversified Income


For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.