The Multi-Asset Diversified Income Index Fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of the NASDAQ Multi-Asset Diversified Income Index, the firm said.
The fund manager said that the Fund offers exposure to a diversified assortment of asset classes within a single investment portfolio, and the portfolio is further diversified within each asset class.
Consequently, the fund provides the potential for a lower-risk total return alternative to investing exclusively in one asset class, and since income is generated from multiple sources, the Fund may provide less interest-rate sensitivity than traditional fixed-income securities, according to the firm.
The index is rebalanced in every quarter to mitigate any negative impact and volatility and includes domestic and international dividend-paying stocks, real estate investment trusts (REITs), master limited partnerships (MLPs), preferred securities and an ETF that invests in high-yield corporate bonds.
Every asset class has its own set of eligibility criteria, and every security in the index is US listed and meets stringent eligibility criteria based on liquidity, size, volatility and yield.
The First Trust NASDAQ Technology Dividend Index Fund seeks investment results corresponding generally to the price and yield (before the Fund’s fees and expenses) of the NASDAQ Technology Dividend Index.
The asset manager claimed that the fund provides a simplified way to gain targeted access to dividend-paying technology companies.
First Trust CFA, chief market strategist Robert Carey said with interest rates at historically low levels, income investors have been seeking yield from alternative sources, including multi-asset income investing.
"In our opinion, the Multi-Asset Diversified Income Index Fund is a disciplined and transparent solution for income investors that seeks to provide income generation, diversification and the potential for reduced volatility in a very challenging market," Carey stated.
