iShares Morningstar Multi-Asset Income ETF

What this fund is

iShares Morningstar Multi-Asset Income ETF is an exchange-traded fund (ETF) from iShares, traded under the ticker IYLD (ISIN US46432F8757). One trade buys a whole basket of holdings, so your money is spread out instead of riding on a single company. In plain terms it is about a ready-made mix of shares, bonds and sometimes other assets in a single fund, so the balance is managed for you, spread across its target market. It passively tracks the Morningstar Multi-asset index — mirroring that market instead of paying a manager to pick winners, which keeps costs low.

Investors often use a broad fund like this as a long-term 'core' holding — a single building block that covers much of a global portfolio in one trade. Its ongoing charge (TER) is 0.5% a year — about €50 a year on a €10,000 holding, taken automatically from the fund. Income such as dividends is paid out to you as cash (a distributing share class), and over the last year it paid out roughly 4.57% (its trailing yield). It holds the underlying investments directly (physical replication).

Its price has swung about 5.8% over the past year — a gauge of how much the value moves, not a judgement of quality. It launched in 2012. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from iShares.)