CVY: INVESCO ZACKS MULTI-ASSET INCOME ETF
ETF Education Report: INVESCO ZACKS MULTI-ASSET INCOME ETF (CVY)
What this ETF is trying to do
The INVESCO ZACKS MULTI-ASSET INCOME ETF, trading under the ticker CVY, is an exchange-traded fund designed to provide income. It holds a variety of different assets to reach this goal. Based on the available data, the fund holds 150 different items in total.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only how much the share price has changed.
• Total Return: This includes both the change in share price *and* the money paid out through distributions.
For CVY, the numbers show:
• Year-to-Date (YTD): The price return is approximately 7.44%, while the total return is approximately 10.82%.
• One Year: The price return is approximately 8.99%, while the total return is approximately 13.59%.
• Three Year: The price return is approximately 34.17%, while the total return is approximately 51.74%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $26.44. The current price is $28.81.
Income and distribution explanation
This ETF focuses on providing cash to investors through distributions. The distribution yield is approximately 4.04%. This number describes the cash payments relative to the current ETF price. The fund usually pays these out quarterly, and over the last 12 months, there were 4 payouts.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price itself.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. Some investors worry that high payouts might cause this. However, for CVY, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are some of the top holdings in the portfolio (note that this is a partial list):
• FMC CORP: 1.12%
• SCORPIO TANKERS INC: 1.12%
• FS CREDIT OPPORTUNITIES CORP: 1.11%
• CF INDUSTRIES HOLDINGS INC: 1.10%
• TORTOISE ENERGY INFRASTRUCTURE CORP: 1.09%
• SM ENERGY CO: 1.08%
• TENARIS SA ADR: 1.08%
• CVR PARTNERS LP: 1.06%
• DORCHESTER MINERALS LP: 1.04%
• JACKSON FINANCIAL INC: 1.04%
Pros
• The fund has shown positive price returns and total returns over the one-year and three-year periods.
• The income rating score is 83, which is a grade of "A."
Cons
• The list of holdings provided is only a partial list of the 150 total items held.
• Holdings can change over time.
Beginner takeaway
When looking at CVY, notice the difference between the price return and the total return. The total return is higher because it includes the cash distributions paid to investors. Always remember that while distributions provide income, they are not a guarantee of how the share price will move in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | JPM-PRL | 1.73% |
| 2 | FMC CORP | FMC | 1.12% |
| 3 | SCORPIO TANKERS INC | STNG | 1.12% |
| 4 | FS CREDIT OPPORTUNITIES CORP | FSCO | 1.11% |
| 5 | n/a | BAC-PRL | 1.11% |
| 6 | CF INDUSTRIES HOLDINGS INC | CF | 1.10% |
| 7 | TORTOISE ENERGY INFRASTRUCTURE CORP | TYG | 1.09% |
| 8 | n/a | BA-PRA | 1.08% |
| 9 | SM ENERGY CO | SM | 1.08% |
| 10 | TENARIS SA ADR | TS | 1.08% |