This ETF Hogs Yield

While there may never be a "Pokemon" or "Elmo" ETF, we are starting to see some humor in the naming of these funds. Just look at the recently listed Claymore/Zacks Yield Hog ETF (CVY Quote).

In case it is not clear, the fund seeks yield and is going after the existing dividend ETFs. The prospectus states that in addition to domestic common stocks, the Yield Hog will invest in ADRs, REITs, master limited partnerships, closed-end funds and preferred stocks. This already makes it a different animal -- the other dividend ETFs own stocks, period.

The first inclination might be to conclude that CVY will not appreciate in value because of its willingness to take in things like preferred stocks and closed-end bond funds, which typically trade in a very narrow price range.

However, according to Claymore, the Zacks Yield Hog Index, the index underlying CVY, "selects companies with potentially high income and superior risk-return profiles ... the objective is to outperform on a risk-adjusted basis the Dow Jones U.S. Select Dividend Index, which underlies the iShares DJ Select Dividend Fund(DVY Quote)." ...