At a glance
MDIV charges 0.71% a year, above the 0.42% average of the 2 funds most like it (the most expensive of 3). It has $416.4M in assets, the largest of that group; it paid 7.69% of its price in distributions over the past 12 months, monthly. Over the past year it returned +9.8% with distributions reinvested (S&P 500: +11.5%), 2nd of those 3 funds; over three years it returned +11.9% a year. At its worst it fell 47.2% in the 2020 crash (S&P 500: 33.7%) and 12.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months and 4 months after the lows. Its ten largest positions make up 32.9% of the fund, out of 124 in all.
The short version
Multi-Asset Diversified Income Index Fund (MDIV) is a First Trust ETF that tracks the Nasdaq US Multi-Asset Diversified Income Index. The index puts 20% each into high-dividend stocks, REITs, preferred securities, master limited partnerships (MLPs) and a high-yield bond ETF. Its main draw is income: a 7.69% trailing yield, paid monthly, as of October 27, 2026. The trade-off is a 0.71% expense ratio, above the 0.42% average of similar funds.
Price history
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MDIV +9.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MDIV official prospectus, to Dec 31, 2025 | — | +3.94% | — | +7.23% | +4.74% | +4.39% |
| MDIV price data to Oct 27, 2026 | +8.8% | +9.8% | +11.9% | +6.1% | +5.2% | +4.8% |
- Over the year to Oct 27, 2026, MDIV returned +9.8%, 2nd of 3 among similar funds.
- Its 5-year annualized return was +6.1% and its 10-year +5.2%.
- In the 2020 COVID crash it fell 47.2% and regained its old high 14.5 months after the low.
- Its worst full calendar year was 2020 (-14.9%); its best was 2019 (+18.6%).
- The deepest fall in its price history was 48.5% (Jan 16, 2020 to Mar 18, 2020), recovered by Jan 11, 2022.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.8% | — |
| 2025 | +4.2% | +3.94% |
| 2024 | +10.0% | +9.97% |
| 2023 | +12.0% | +11.43% |
| 2022 | -3.9% | -4.20% |
| 2021 | +16.5% | +16.21% |
| 2020 | -14.9% | -14.35% |
| 2019 | +18.6% | +18.38% |
| 2018 | -5.7% | -5.75% |
| 2017 | +5.7% | +5.46% |
| 2016 | +11.2% | +11.18% |
| 2015 | -7.7% | — |
| 2014 | +8.0% | — |
| 2013 | +10.8% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 45.2% over that stretch · deepest drop along the way 47.2%, back to its old high 14.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9.7% over that stretch · deepest drop along the way 12.6%, back to its old high 4.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9800 | |
| 2025 | $1.0900 | +5.8% |
| 2024 | $1.0300 | +1.0% |
| 2023 | $1.0200 | +2.0% |
| 2022 | $1.0000 | +13.6% |
| 2021 | $0.8800 | -2.2% |
| 2020 | $0.9000 | -18.9% |
| 2019 | $1.1100 | -3.5% |
| 2018 | $1.1500 | -0.9% |
| 2017 | $1.1600 | -4.1% |
| 2016 | $1.2100 | -11.0% |
| 2015 | $1.3600 | +12.4% |
| 2014 | $1.2100 | 0.0% |
| 2013 | $1.2100 |
What's inside
As of Jun 30, 2026, the fund held 124 securities; the ten largest made up 32.87% of assets.
| Holding | Weight | |
|---|---|---|
| First Trust Tactical High Yield ETF | 19.65% | |
| PENNYMAC MORTGAGE INVESTMENT TRUST | 1.67% | |
| AGNC INVESTMENT CORP | 1.61% | |
| MFA FINANCIAL INC | 1.60% | |
| ICAHN ENTERPRISES LP | 1.53% | |
| MACH NATURAL RESOURCES LP | 1.50% | |
| TXO PARTNERS LP | 1.49% | |
| ANNALY CAPITAL MANAGEMENT INC | 1.47% | |
| RITHM CAPITAL CORP | 1.21% | |
| CROSSAMERICA PARTNERS LP | 1.13% | |
| KIMBELL ROYALTY PARTNERS LP | 1.09% | |
| APOLLO COMMERCIAL REAL ESTATE FINANCE INC | 1.05% | |
| DORCHESTER MINERALS LP | 1.03% | |
| BLACK STONE MINERALS LP | 1.01% | |
| ALLIANCE RESOURCE PARTNERS LP | 1.00% |
By country
United States 98.41%Canada 0.78%Ireland 0.33%Marshall Islands 0.03%By asset type
Stocks 80.02%Preferred stock 19.54%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $13.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.55%, -0.23%, +0.96%.
How it works
MDIV is an index fund. It aims to match, before fees, the price and yield of the Nasdaq US Multi-Asset Diversified Income Index, which Nasdaq, Inc. owns and maintains. It normally keeps at least 90% of net assets in the index's securities. The index has five equal 20% segments: dividend stocks; REITs (real estate investment trusts, which own property or mortgages); preferred securities (hybrids that pay set dividends ahead of common stock); MLPs (publicly traded partnerships, often in energy); and high-yield corporate bonds.
Each segment has its own screens. To qualify, stocks must have paid dividends for three straight years, have positive earnings, pay out no more than 80% of earnings, and stay within a volatility limit. The 50 highest yielders are picked. REITs follow similar rules, with payouts allowed up to 150%, and the top 25 by yield are picked. The preferred segment picks 25 securities that combine high yield with low volatility. Within each segment, weights follow dividend yield, capped at 8% per security.
The bond slice is a single fund, not individual bonds. It is First Trust Tactical High Yield ETF (HYLS), which made up 19.6% of assets as of June 30, 2026. That means MDIV holders also indirectly pay a share of HYLS's own fees. At that date the fund held 124 securities and no derivatives. Portfolio turnover was 68%, according to the prospectus, so holdings change fairly often.
What it really costs
- MDIV charges 0.71% a year, versus an average of 0.42% for the similar funds below (3rd of 3, cheapest first).
- Of that, 0.6% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.12% waiver from the adviser, which may end.
In a retirement portfolio
MDIV is built to collect high income from five yield-focused asset types and pays it out monthly, but it carries stock-like crash risk.
MDIV could serve as an income sleeve. It yielded 7.69% over the 12 months to October 27, 2026 ($1.24 per share), paid monthly. That income comes with real risk in a crisis. The fund launched in 2012, so it has no 2008 record. In the 2020 COVID crash it fell 47.2%. Its deepest drop, 48.5% from January to March 2020, took about 22 months to recover. Its worst calendar year was 2020, when it lost 14.35%. In 2022 it held up better: it fell 12.6% and recovered in about four months. A retiree who had to sell in spring 2020 would have locked in heavy losses. REIT and MLP payouts can also be cut in hard times. The 0.71% expense ratio reduces returns every year. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts. The trailing yield was 7.69% as of October 27, 2026, drawn from five income-producing asset types.
- Investors who want one fund spread equally across dividend stocks, REITs, preferreds, MLPs and high-yield bonds, with fixed 20% index targets.
- Holders who can stomach crash risk, like the 48.5% drop in early 2020, in exchange for high ongoing income.
Look elsewhere if
- Cost-focused investors. The 0.71% expense ratio is the highest of its comparison group, where the average is 0.42%.
- Anyone likely to need to sell during a crash. The fund took about 22 months to regain its January 2020 peak.
- Investors seeking long-term growth. Its 10-year average annual return was 4.74% through December 31, 2025.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Does MDIV pay monthly dividends?
Yes. MDIV pays distributions every month. Over the 12 months to October 27, 2026, it paid $1.24 per share, a trailing yield of 7.69%. The income comes from dividend stocks, REITs, preferred securities, MLPs and a high-yield bond ETF. Payments can change. The prospectus warns that companies don't have to keep paying dividends and could cut or stop them.
Is MDIV good for retirement income?
It can provide high monthly income, but the risk is closer to stocks than to bonds. The trailing yield was 7.69% as of October 27, 2026. But the fund fell 48.5% in early 2020 and took about 22 months to recover. Its 10-year average annual return was 4.74% through December 31, 2025. It may suit retirees whose overall portfolio can absorb that kind of drop.
What does MDIV hold?
MDIV held 124 securities as of June 30, 2026, split across five segments of about 20% each. The largest holding was First Trust Tactical High Yield ETF (HYLS) at 19.6%, which supplies the bond slice. Next came the mortgage REITs PennyMac Mortgage Investment Trust (1.7%), AGNC Investment (1.6%) and MFA Financial (1.6%), then Icahn Enterprises (1.5%). About 98% of assets were in US securities.
MDIV vs HEJD: what's the difference?
They own very different things. VictoryShares Hedged Equity Income ETF (HEJD) overlaps with MDIV more than any other fund, yet only 14% of their holdings match. HEJD costs less, 0.55% versus 0.71%. It returned 1.8% over the year to October 27, 2026, compared with 9.8% for MDIV. MDIV is much larger: $416 million in net assets as of June 30, 2026, versus about $36 million for HEJD as of December 31, 2025.
What is MDIV's expense ratio?
MDIV's expense ratio is 0.71%, according to its prospectus filed January 28, 2026. The prospectus lists a 0.60% management fee and a 0.12% fee waiver. That cost is above the 0.42% average of the two funds closest to it by holdings, which makes MDIV the most expensive of the three. About a fifth of the portfolio sits in another ETF, HYLS, so holders also indirectly pay a share of that fund's costs.