Posts tagged preferred stocks

CVY, or the Guggenheim Multi-Asset Income ETF, was a good find by a friend in 2010.  I’ve owned this since late 2010 with about an 11% gain (plus dividends).  This ETF is a well diversified basket of stocks, bonds, preferred stock, ADR’s, REIT’s, MLP’s, and royalty trusts.  Quite a basket of investments all into one ETF. The fund tracks the “Zacks Multi-Asset Income Index” for its investments.  CVY pays a nice dividend of around 4.7%.

The expense ratio of 0.60% is a bit higher but still in line with most ETF’s.  I’ll pay a little higher expense ration for higher returns any day.

Top Fund Holdings
SEADRILL LTD     1.48 %
CONOCOPHILLIPS .     1.38 %
CHEVRON CORP .     1.34 %
LINN ENERGY LLC .     1.29 %
WELLS FARGO & COMPANY     1.12 %
EATON VANCE LIMITED DURATION INCOME FUND     1.10 %
ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND INC     1.07 %
PROVIDENT ENERGY LTD     1.06 %
ANNALY CAPITAL MANAGEMENT INC .     1.03 %
AMERICAN CAPITAL AGENCY CORP     1.03 %

TOP FUND SECTORS

SECTOR     WEIGHTING
Finance     20.50 %
Oils/Energy     18.12 %
Consumer Staples     13.06 %
Utilities     12.53 %
Closed End Funds     9.66 %
Computer & Technology     6.83 %
Medical     6.02 %
Aerospace     2.93 %
Basic Materials     2.56 %
Consumer Discretionary     2.31 %
Industrial Products     1.46 %
Construction     1.37 %
Retail/Wholesale     1.00 %
Transportation     0.85 %
Business Services     0.79 %

As you can see, the fund is leveraged heavily into energy and financial services.  Another economic downturn could hit this fund quite hard.  But with just a 10% portfolio allocation like I recommend, you aren’t betting the farm on this either.  I believe this ETF is also one to keep for a while.  Energy isn’t going anywhere and financial services will pick back up.  There may be some short term speed bumps though.

**disclosure – I am long CVY