A Global Multi-Asset ETF Yielding Over 6%

ETF Trends

ETF Spotlight on the Arrow Dow Jones Global Yield ETF (GYLD) , part of an ongoing series.

Assets : $80.1 million.

Objective : The Arrow Dow Jones Global Yield ETF tries to reflect the performance of the Doe Jones Global Composite Yield Index, which follows a multi-asset strategy comprised of an equally weighted exposure across five global yield categories, including global sovereign debt, global corporate debt, global alternatives, global real estate and global equities.

Holdings : Top holdings include Surgutneftegaz 1.1%, Kon KPN 1.0%, Hospitality PPTYS 0.8%, Martin Midstream Partners 0.8% and Inland Real Estate Corp 0.8%.

What You Should Know :

  • ArrowShares sponsors the funds.
  • GYLD has a 0.75% expense ratio.
  • The fund has 148 holdings and the top 10 make up 8.1% of the overall portfolio.
  • As of March 31, sector allocations included financials 24.0%, government 20.0%, telecom 8.6%, oil & gas 19.4%, basic materials 7.4%, utilities 4.6%, consumer services 4.6%, industrials 4.7%, technology 2.7%, consumer goods 2.7% and health care 1.3%.
  • As of March 31, top country allocations included U.S. 39.5%, Australia 6.0%, South Africa 4.1%, Hungary 4.0%, Singapore 3.3, Venezuela 3.3%, Spain 3.3%, Portgual 3.3% and France 3.3%.
  • As of March 31, currency exposure included U.S. dollar 56.2%, euro 18.4%, Australian dollar 6.0%, Singapore dollar 3.3%, South African Rand 2.7%, New Zealand dollar 2.7%, Hong Kong dollar 2.0%, Canadian dollar 1.4% and Polish zloty 1.3%.
  • The ETF has a 60.2% position in equities and a 39.77% allocation toward fixed-income assets.
  • GYLD has a distribution yield of 6.34%.
  • The fund is up 2.7% over the past month, up 6.9% in the last three months, up 8.8% year-to-date, and up 25.9% over the past year.
  • “We have seen that the majority of income-oriented investors today desire yield, but not necessarily at the expense of returns,” Joseph Barrato, CEO of Arrow Investment Advisors, said in a note. “We advocate a global approach to yield that incorporates both traditional and alternative sources of income, along with growth potential.”
  • “In addition to the broad diversification afforded by GYLD, we appreciate the way the portfolio is managed,” Bill Sowell, President of Sowell Management Services, said in a notes. “GYLD’s index is active by nature and offers efficient exposure to attractive sources of global yield.”

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