ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Investigate INC for Income Opportunities
Beyond Basic Beta Channel
Share

Investigate INC for Income Opportunities

Tom LydonNov 11, 2022
2022-11-11

The dividend yield on the S&P 500 is a mere 1.56%, and bond yields are rising because prices are falling, which is by no means an appealing scenario. Income investors are dealing with an array of challenges this year, and 2022 has proven to be an ideal time to evaluate alternative and unique strategies. Enter the VanEck Dynamic High Income ETF (INC C+).

INC is fresh on the income-generating ETF scene, having debuted on November 1, but the emphasis should be on relevance, not age, and INC is indeed relevant. The rookie fund employs an “ETF of ETFs” approach to deliver exposure to various high-income asset classes.

“The high income sector of the market is attractively priced as valuations have dipped with the recent market selloff,” according to VanEck research. “While this has been happening, yields on these securities have continued to increase as the Federal Reserve (Fed) continues to raise rates in their effort to ward off inflation. The result: real yields on many income generating securities have turned positive in 2022.”

INC’s 14 holdings include a variety of well-known ETFs from the VanEck lineup, including the VanEck Fallen Angel High Yield Bond ETF (ANGL A-), the VanEck Mortgage REIT Income ETF (MORT B), and the VanEck Morningstar Durable Dividend ETF (DURA A), among others.

Currently, the bulk of INC’s holdings are fixed income ETFs or funds dedicated to hybrid securities with bond-like traits. For the bulk of this year, that’s not been the place to be, but there are signs that inflation may be cooling, as highlighted by the October Consumer Price Index (CPI) reading.

That could be a sign the Federal Reserve could lay off rate hikes in 2023, potentially providing much-needed relief to the bond market. In other words, there could be value in INC’s bond tilts today.

“Waning valuations in recent months may cause yields to appear more attractive, but just because the yield is high doesn’t make it a good buy. An actively managed solution from VanEck’s Quantitative Investment Solutions group can help investors avoid yield traps and potentially enhance the quality of high yielding investments,” added VanEck.

Plus, INC investors get the benefit of active management. Potentially, that’s a positive because active management could better identify valuation and credit opportunities.

“Active management can also help investors navigate turbulent capital markets. By tactically shifting allocations, the portfolio management team may be able to enhance downside protection as well as upside participation,” concluded VanEck.

For more news, information, and strategy, visit the Beyond Basic Beta Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X