The fund tracks the Zacks Multi-Asset Income Index and holds dividend-paying securities across several asset classes, including US-listed dividend stocks, ADRs, REITs, MLPs, closed-end funds, and traditional preferred stocks.

It is not limited to a single asset class, which makes it a fit for investors who want an income portfolio diversified across multiple sources of income.

It is a passively managed (index-tracking) ETF run by Invesco.

The index selects and includes dividend-paying securities from several asset classes, such as US-listed dividend stocks, ADRs, REITs, MLPs, closed-end funds, and traditional preferred stocks. It maintains diversification across asset classes so that it does not lean toward any particular sector or single asset class, and it is rebalanced quarterly.

• An income portfolio spanning multiple asset classes rather than a single equity type
• Inclusion of alternative income sources such as REITs, MLPs, and preferred stocks

Assets under management (AUM) stand at $119.0M, and the total expense ratio is 1.15% per year.

Unlike the dividend growth equity ETFs shown in the table, such as CGDG and EQTY, or high-dividend specialist ETFs such as SDIV, this ETF takes a different approach by diversifying across asset classes themselves.

Given the nature of income asset classes, the fund is affected by both the interest rate environment and the trends in dividend stock and REIT markets, and it tends to show relatively milder price swings than single-asset-class ETFs.

Whenever interest rates shift, investor sentiment toward income-oriented assets becomes divided, and demand for them as a bond alternative coexists with concerns about interest rate sensitivity. That environment has persisted.

Its strength is spreading income sources across several asset classes, while the interest rate sensitivity of the individual asset classes and the need to understand its composite structure are points to keep in mind.

The CGDG, EQTY, and similar funds in the table are equity ETFs centered on dividend growth stocks, while SDIV, FDD, EYLD, and others focus on specific themes such as high dividends, international dividends, and emerging market income. By contrast, products that blend multiple income sources in a way similar to this ETF include PFF and PGX, which center on preferred stocks, YYY, which holds closed-end funds, and MDIV and DIV, which have a similar multi-asset income structure. Comparing them lets you see the differences in asset class composition.

Here are the points to review before investing in CVY. Because it is an income structure that mixes several asset classes, you need to understand the characteristics and interest rate sensitivity of each asset class, and its nature differs from that of a single-stock-type dividend ETF.

When interest rates rise, the fund may show relative weakness because of its REIT and preferred stock weightings, and given its mixed asset class structure, the diversification benefit may be limited during broad market corrections.

If you want to diversify income sources without being tied to a single asset class, this ETF can be an alternative. If you would rather focus on dividend growth or a specific theme, it is worth comparing it with other ETFs in the table, such as CGDG and SDIV.