UYLD offers a compelling yield enhancement, delivering about 1% over Fed Funds with a 5.2% SEC yield and low volatility. The ETF's portfolio is 96% investment grade, focused on securitized products like ABS, CLOs, and agency MBS, with a 0.7-year duration. UYLD demonstrated resilience during the April 2025 risk-off event, outperforming similar funds in its asset class with minimal drawdown.
UYLD invests in a wide assortment of cash alternative investments, including T-bills, high-quality CLOs, and short-term MBS. It yields 5.4%, a bit more than T-bills, with a bit more in volatility and risk. Risk-return seems somewhere between that of T-bills and AAA CLOs, perhaps a bit weaker than the latter.