Insights


DIY Income: Using ETF Building Blocks to Generate Income

2020 was a difficult year for investors who rely on dividend income to support themselves financially. Central banks, including the European Central Bank and the Bank of England, ordered banks to suspend dividend payments when the pandemic struck and many other listed companies followed suit. How can investors generate income in the current climate? 


Overview

In our latest whitepaper, we explore the ways in which income-seeking investors can build their own portfolios through an allocation to indexed ETF building blocks. To illustrate this approach, we have developed a stylised tactical asset allocation model, for both US and European investors, that targets income-generating building blocks through a momentum strategy. 

This asset allocation approach will be known as the Dual Momentum Yield Approach (DMYA). In the whitepaper, we also compare the performance of this approach against active income funds.

Click here to read the whitepaper

Share