During the go-go days of the Federal Reserve's various versions of quantitative easing, a slew of high-yield sector and asset classes became investor favorites. That includes multi-asset exchange-traded funds, such as the First Trust Multi-Asset Diversified Income Index Fund (First Trust Exchange Traded Fd VI (NASDAQ: MDIV)).
ETFs like MDIV may swing back into focus as government bond yields remain low, keeping investors on the hunt for alternative yields sources. Beyond common stocks, multi-asset ETFs can hold assets ranging from junk bonds to REITs to MLPs to preferred stocks. A lineup featuring assets like that not only helps investors generate income, but also reduces exposure to the intense correlations seen throughout equity markets.
In addition, non-investment grade bonds are viewed as less sensitive to ...
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