Who Wants Monthly Income?
|Monthly Income is the Objective of
Many of |
There are a host of financial unknowns. However, one thing is certain; we all have bills to pay every month. So it’s nice to know that there is an Exchange Traded Fund (ETF) whose goal is delivering monthly income.
The Arrow Dow Jones Global Yield ETF (NYSE: GYLD) seeks to provide current income and long-term appreciation through a portfolio of global yielding securities. To learn more about the investment strategy, click here or read below.
30-day SEC Yield: 10.10%*
Distribution Rate 7.38%*
Living in low-interest-rate environment is a challenge for individuals seeking passive income from traditional sources.
The primary reason so many investors own high-yield ETFs is simple, for monthly income.
(from $1 Million invested on 5/31/2012 through 12/31/2021)
Past performance does not guarantee future results. For more information on the Morningstar categories see below. 60% Equity & 40% Bonds portfolio invest 40% in Intermediate-government and 60% in Large-blend portfolios. Data Source: Morningstar, December 31, 2021, calculated by Arrow.
*Source: Arrow Performance and Analytics. Data as of 11/16/2023. For the most recent 30-day SEC yield and
Distribution rates, please see www.arrowfunds.com. Distribution Rate reflects the total distributions over the previous 12 months. SEC Yield and Distribution Rate may include income, dividends, return of capital, or other distributions that are not considered short-term or long-term capital gains. Return of capital is considered a return of the investment principal and is not derived from net profits. To view the most recent performance data, visit Arrow Fund's website here.
Arrow Dow Jones Global Yield ETF
Arrow Funds partnered with S&P Dow Jones and Credit Suisse to launch the first exchange traded fund tied to the Dow Jones Global Composite Yield Index.
GYLD specifically targets global income securities and strives to enhance yield and performance, with a balanced portfolio
(60% Equity and 40% Bonds).
This is an income seeking strategy similarly employed by institutions, and is now available within this ETF structure.
Trademarks and names are the property of their respective owners and do not imply any endorsement of Arrow Funds and its affiliates. By clicking on or copying any of the links above you will be leaving the Arrow Funds site and entering a third party site. Arrow Funds is not responsible for any information contained on these third party sites. Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
We have taken a hard asset and global approach to delivering income, because of its balanced portfolio and diversity when compared to alternative approaches. Demand for yield strategies has increased dramatically, and, consequently, the range of investment options has broadened and evolved both in the U.S. and abroad. |
This guide is intended to help you to understand the range of traditional and non-traditional options that are available to you today.
NYSE: GYLD seeks to pay monthly dividends in an easy to buy, easy to sell ETF.
|Systematic Process |
There’s more to our process than simply buying the highest yielding securities. GYLD is diversified across asset classes and geographies to deliver more consistent above market yield.
We provide market exposure across five asset classes (Global Corporate Debt, Global Sovereign Debt, Global Real Estate, Global Energy and Global Equities).
Each asset class seeks the highest yielding global securities with 30 holdings in each basket (150 total holdings). GYLD follows a strict screening process with
quarterly rebalancing (dual-equal weighting process at and within the asset classes).
Dow Jones Global Composite Yield Index
Past performance is not indicative of future results. 12-Month Composite Yield is as of 9/30/2023 and is based on the average yield of the five sub-categories of the Dow Jones Global Composite Yield Index from the most recent 12-month period and is subject to change. Indexes are unmanaged, do not include fees and are not available for direct investment.
A Proven Track Record for Above-Market Yield
Arrow’s approach to global yield (NYSE: GYLD) has outperformed most sectors of the bond market for yield.
Past performance does not guarantee future results. For more information on the Morningstar categories see below. Index returns assume reinvestment of dividends, but do not reflect any management fees, transaction costs or expenses. Indexes are generally unmanaged and are not available for direct investment. Data Source: Morningstar, January 31, 2022, calculated by Arrow.
| About Arrow|
Arrow Funds is a company with a passion and energy for helping investors meet their investment goals. We believe in offering sophisticated, targeted portfolio solutions for ever-changing markets. Arrow Funds are deployed by advisors, businesses, endowments and foundations, family offices as well as qualified and non-qualified retirement plans.
are based on Morningstar category data. Category returns assume reinvestment of
dividends and are net of management fees, transaction costs or expenses. The
number of funds in a category will vary, subject to survivorship bias from fund
closure and recategorization. The driving principles behind the
Morningstar classification system is categories have enough constituents to
form the basis for reasonable peer group comparisons and portfolios within a
category invest in similar types of securities. The distinctions between
categories are meaningful to investors and assist in their pursuit of investing
goals. Here is a breakdown of each
Equity & 40% Bonds
portfolio invest 40% in Intermediate-government and 60% in Large-blend
portfolios have at least 90% of their bond holdings in bonds backed by the U.S.
government or by government-linked agencies. These portfolios have durations
typically between 3.5 and 6.0 years. The portfolios' returns are often similar
to those of the Barclays US Agg Bond Index. Large-blend
portfolios are fairly representative of the overall US stock market in size,
growth rates and price. Stocks in the top 70% of the capitalization of the US
equity market are defined as large cap. The portfolios' returns are often
similar to those of the S&P 500 Index. World-allocation
portfolios seek to provide both capital appreciation and income by investing in
three major areas: stocks, bonds, and cash. These portfolios typically have at
least 10% of assets in bonds, less than 70% of assets in stocks, and at least
40% of assets in non-U.S. stocks or bonds. Foreign large-value portfolios
invest mainly in big international stocks that are less expensive or growing
more slowly than other large-cap stocks. These portfolios typically will have
less than 20% of assets invested in U.S. stocks. Long-government portfolios
have at least 90% of their bond holdings invested in bonds backed by the U.S.
government or by government-linked agencies. Because these portfolios have
durations of typically more than 6.0 years, they are more sensitive to interest
portfolios primarily invest in floating-rate bank loans instead of bonds. In
exchange for their credit risk, these loans offer high interest payments that
typically float above a common short-term benchmark such as LIBOR. Corporate
concentrate on bonds issued by corporations. These portfolios hold more than
65% of their assets in corporate bonds, hold less than 40% of their assets in
foreign bonds, less than 35% in high yield bonds. Preferred
concentrate on preferred stocks and perpetual bonds. These portfolios hold more
than 65% of assets in preferred stocks and perpetual bonds. High-yield
portfolios concentrate on lower-quality bonds, which are riskier than those of
higher-quality companies. These portfolios primarily invest in U.S. high-income
debt securities where at least 65% or more of bond assets are not rated or are
rated at the level of BB (considered speculative for taxable bonds) and below. Emerging-markets
portfolios invest more than 65% of their assets in foreign bonds from
developing countries. The largest portion of the emerging-markets bond market
comes from Latin America, followed by Eastern Europe. Africa, the Middle East,
and Asia make up the rest. High-Yield Muni portfolios
typically invest a substantial portion of assets in high-income municipal
securities that are not rated or that are rated at the level of or below BBB
(considered high-yield within the municipal-bond industry) by a major ratings
funds invest a significant amount of their portfolio in energy master limited
partnerships. These include but are not limited to limited partnerships
specializing in midstream operations in the energy industry. World
Real Estate portfolios
invest 40% in Global real estate portfolios which invest primarily in non-U.S.
real estate securities & 60% in Real estate portfolios which invest
primarily in U.S. real estate investment trusts of various types.
The Arrow Dow Jones Global Yield ETF may not be suitable for all investors. The fund may not replicate the exact performance of the benchmark because of fees, expenses, trading costs and portfolio tracking error. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions which will reduce returns. Fixed income securities may be subject to risks associated with interest rate fluctuations. International investments may involve additional risks, including, but not limited to, currency fluctuation, accounting methods, and geopolitical instability. Emerging markets involve heightened risks related to the same factors as well as increased volatility and potentially lower trading volume. Changes in laws, domestically or abroad, could result in the inability of the fund to operate as described in the prospectus. Narrowly focused investments may be subject to higher volatility. High yielding stocks and non-investment grade bonds are often higher risk investments which may be subject to greater volatility. Master Limited Partnerships (MLPs) and Royalty Investment Trusts (RITs) have specific risks, including, among others, limited voting rights, energy demand, limited call rights of the general partner, and tax law changes. In order to qualify for the tax treatment of a regulated investment company (RIC) the fund’s exposure to MLPs can not exceed 25%, or may be subject to corporate taxes which would reduce performance. Investments in securities of real estate companies involves risks including, among others, adverse changes in real estate conditions domestically or abroad, availability or obsolescence of properties, cost and terms of mortgages, and changes of laws.
The Dow Jones Global Composite Yield IndexSM is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Arrow Investment Advisors, LLC (“AIA”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); “Dow Jones”, Dow Jones Global Composite Yield IndexSM and “Dow Jones Indexes” are trademarks of the Dow Jones Trademark Holdings LLC; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AIA. AIA’s affiliate ArrowShares is the exchange traded product line of Arrow Funds. These Funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones Global Composite Yield IndexSM.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that
shares, when sold or redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained by visiting www.arrowfunds.com or by
calling 1-877-277-6933. ETFs are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage fees will reduce returns. Index returns assume
reinvestment of distributions, but do not include fees or expenses. Indexes are not available for direct investment. Market returns are based upon the midpoint of the bid/ask spread at market close when NAV
is determined, and do not represent the returns you would receive if you traded shares at other times. The market price may be above (premium) or below (discount) relative to the NAV. *GYLD inception
date (first trade date): 5/8/2012.
To view the most recent performance data, visit Arrow Fund's website here.
Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risks, including the potential for loss of principal. An
investor should consider the fund’s investment objective, charges, expenses and risks carefully before investing. This and other information about the fund is contained in the fund’s prospectus, which can
be obtained by calling 1-877-277-6933.
Content reviewed by an affiliate, Archer Distributors, LLC.