First Trust International Multi-Asset: Gateway To Foreign Exposure

Summary

YDIV delivers the greatest foreign exposure among multi-asset ETFs.
YDIV has nearly 40 percent of assets in Canadian and Australian shares, exposing it to commodity risk.
Current yield is competitive with other multi-asset ETFs, but future income depends on the outlook for the U.S. dollar.

Multi-asset ETFs offer investors diversification within a single ETF. Stocks, bonds, preferred stock, REITs, MLPs and commodities are some of the assets that can be found in a multi-asset fund. These funds are attractive to investors due to the promise of diversification and sometimes high yields, but investors need to dig into the details to figure out how the fund is constructed.

First Trust International Multi-Asset Diversified Income Index ETF (NASDAQ:YDIV) is a multi-asset fund that takes the strategy behind First Trust Multi-Asset Diversified Income Index ETF (NASDAQ:MDIV) and goes international. The fund launched in August 2013, and currently has $13 million in assets, making it one of the smaller multi-asset funds….To continue reading, please Click Here.

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