First Trust launched a non-U.S.-focused diversified income ETF, the International Multi-Asset Diversified Income Index Fund (YDIV), in August. The fund is a follow-on to the firm's similar but U.S.-focused fund, "MDIV."
YDIV invests 15 percent of its portfolio in the iShares JP Morgan USD Emerging Markets Bond ETF (EMB | B). The new fund also carves out 25 percent of its portfolio for dividendpaying securities and divides up the remaining 60 percent equally between REITs, preferred securities and infrastructure companies, which will each claim 20 percent of YDIV's holdings.
The new fund tracks the Nasdaq International Multi-Asset Diversified Income Index has a total expense ratio of 79 basis points. The fund is listed on Nasdaq.