MDIV Profile
MDIV is the ticker symbol for the First Trust Exchange-Traded Fund Multi-Asset Diversified Income Index Fund. This fund seeks to provide investors with current income and capital appreciation by investing in a diversified portfolio of income-producing securities from various asset classes, including equities, real estate investment trusts (REITs), and master limited partnerships (MLPs).
The fund's investment strategy is based on the NASDAQ Multi-Asset Diversified Income Index, which is a rules-based index designed to track the performance of a portfolio of income-producing securities. The index is designed to provide exposure to various asset classes that are expected to generate current income, including dividend-paying stocks, REITs, MLPs, and preferred securities.
Investors in MDIV should be aware that the fund's focus on income-producing securities means that it may be more sensitive to interest rate changes than funds that focus primarily on capital appreciation. Additionally, the fund's diversification across various asset classes may reduce volatility and potentially provide greater income stability.
The MDIV fund has an expense ratio of 0.70%, which is relatively low compared to similar multi-asset income funds. It is also worth noting that as an exchange-traded fund (ETF), investors can buy and sell shares of MDIV on an exchange like a stock, making it a convenient and flexible investment option.
In summary, MDIV is an exchange-traded fund that seeks to provide investors with current income and capital appreciation by investing in a diversified portfolio of income-producing securities from various asset classes. The fund's investment strategy is based on the NASDAQ Multi-Asset Diversified Income Index, and investors should be aware of its focus on income-producing securities and potential sensitivity to interest rate changes.
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