The stock market has taken a hit in recent days, amid concern about the potential impact of tariffs. With recession indicators also rising, investor concern about the impact on their portfolios may be growing. Volatility could prove especially painful for those nearing retirement. One move some savvy investors might consider, then, could be adding some income to portfolios as ballast amid concerning stock market news. The income ETF MUSI, for example, could provide a strong option in that space.
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The American Century Multisector Income ETF (MUSI ) charges a 36 basis point fee for its approach. The ETF actively invests in a broad range of fixed income securities, with a goal of providing a high level of current income. Specifically, the strategy invests in investment grade corporate, high yield, bank loans, securitized debt, and more. It also can invest in equity securities, preferreds, convertible securities, and other income-focused offerings.
The fund’s managers apply a sector rotation approach, leaning on both fundamental and quantitative inputs. Together, that has helped the strategy return 8.65% over the last year, per American Century Investments data as of February 28. That performance outpaced the fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, which only returned 5.8% in that time. As of that February date, the fund also offered a 5.8% 30-day SEC unsubsidized yield and a 12-month distribution rate of 5.9%.
With its active approach, the strategy could present a strong option in an uncertain 2025. Its active remit empowers its managers to closely scrutinize potential investments. When looking for total return and current income, that can help separate the wheat from the chaff among lower-rated investments. Taken together, with potentially bad stock market news looming, MUSI could prove a solid medium-term satellite addition to portfolios.
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