ArrowShares’ multi-asset income ETF surpasses $100m

Mar 13th, 2014 | By | Category: Alternatives / Multi-Asset

Arrow Investment Advisors, the investment manager behind the ArrowShares exchange-traded fund brand, has revealed that the Arrow Dow Jones Global Yield ETF (GYLD) has surpassed $100 million in assets.

ArrowShares’ multi-asset income ETF surpasses $100m

The NYSE Arca-listed the Arrow Dow Jones Global Yield ETF (GYLD) has surpassed $100 million in assets. (file image)

The NYSE Arca-listed fund has reached this milestone less than two years after making its debut in May 2012.

The fund is linked to the Dow Jones Global Composite Yield Index, a multi-asset class index that aims to provide global diversified representation of high-yield securities, including equities, alternatives, such as MLPs, preference shares and royalty trusts, and corporate and sovereign debt.

The index itself is an equally weighted composite of five indices, each of which is equally weighted and made up of 30 securities.

The five indices are: Dow Jones Global Equity Yield Index; Dow Jones Global Real Estate Yield Index; Dow Jones Global Alternative Yield Index; Credit Suisse Yield Enhanced Global Corporate Index; and Credit Suisse Yield Enhanced Sovereign Index.

Joseph Barrato, CEO and Director of Investment Strategy at Arrow, said: “Despite an uptick in 2013, interest rates remain at historical lows and income-oriented investors continue to seek out competitive yield. At Arrow, we believe in a global approach to yield that incorporates both traditional and alternative sources of income, along with exposure to growth opportunities. GYLD may offer a compelling alternative for those who wish to generate yield, without necessarily sacrificing returns.”

He added: “Investors are beginning to anticipate the impact of a rising interest rate environment and declining bond prices. GYLD’s equally-weighted exposure to multiple asset classes may complement traditional fixed income investments that tend to be more vulnerable to rising rates.”

As of the February 18, 2014 distribution, the fund has delivered a total return of 10.28% since inception, with a 12-month yield of 6.03% and 30-Day SEC yield of 6.29%.

It has an expense ratio of 0.75%.

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