The SPDR Income Allocation ETF Goes Active

The SPDR Income Allocation ETF Goes Active

A Seeking Alpha Contribution

Summary

  • INKM offers an actively managed multi-asset ETF.
  • INKM currently has a larger exposure to common stocks, lowering the yield to the level of some dividend ETFs.
  • INKM has thus far failed to beat the competition.

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.

State Street also has an entry in this field, the¬†SPDR Income Allocation ETF (NYSEARCA:INKM). The fund currently has a larger equity tilt than its competitors, save the Guggenheim Multi-Asset Income ETF (NYSEARCA:CVY), and pays dividends quarterly instead of monthly. What really sets the fund apart is its active management…To continue reading, please Click Here.

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