CLOI - INCM: Decent Income ETF, But Not The Most Compelling

2025-03-25 17:36:47 ET

Summary

• Franklin Income Focus ETF offers a 5.25% yield from a diversified portfolio of debt and equity securities.
• There is no red flag in INCM’s risk profile and past performance, but its short track record is still unconvincing compared to some income ETFs.
• In particular, a junk bond ETF and a preferred ETF are more compelling based on yield and total return, while a CLO ETF looks a better choice for risk-averse investors.

INCM strategy

Franklin Income Focus ETF ( INCM ) is an actively managed ETF launched on 06/06/2023. INCM has 279 holdings of 184 issuers, a 30-day SEC yield of 4.83%, a distribution yield of 5.25% and a total expense ratio of 0.38%. Distributions are paid monthly. As described in the prospectus by Franklin Templeton :

the Fund invests in a diversified portfolio of debt and equity securities. The Fund may dynamically shift its investments from one asset class to another based on the investment manager's analysis of the best opportunities for the Fund’s portfolio in a given market.

For further details see: