Multi-asset income fund-of-funds with a variable monthly payout — the fee above the §7 band holds the grade at warn. The fund holds 12 underlying ETFs — about 60% fixed income, 20% equities, 20% REITs and preferreds — and has paid monthly since April 2012. Distributions are variable month to month, from $0.053 to $0.203 over the last twelve payments, including a $0.203 December payment. The 5-year dividend CAGR is 2.62%, though the 3-year CAGR is −2.20%. The 0.50% expense ratio sits above the House §7 band (>0.30%) and is flagged below.
Key risk: Monthly distributions vary from $0.053 to $0.203 — budget on the average, not the best month.
Changes if: The expense ratio falls to 0.30% or below, or monthly distributions stabilize.
- !Expense ratio (§7) 0.50% exceeds the 0.30% fail line in the §7 band; flagged here, graded with the fund’s record as other library dividend ETFs are. Secondary sources show 0.49%–0.60%.
- !5-yr dividend growth (§7) 5-year CAGR 2.62% is positive, but the 3-year CAGR is −2.20% — mixed record, graded caution.
- !Distribution variability Monthly distributions ranged $0.053–$0.203 over the last twelve payments; variable, not steady.
- ✓Yield / trap review (§8) 4.91% yield, no trigger: under 8%, no cut, distributions are regular income.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.