4 ETF Fund of Funds to Consider

So many exchange-traded products, so little time. With the number of ETFs and ETNs in the U.S. fast approaching 1,500, investors have a dizzying array of options, so it's not surprising that some indecision may creep into the selection process. For the indecisive among us, or for those that like the idea of owning multiple ETFs under one umbrella, an ETF fund of funds could prove to be a shrewd move. Also known as "multi-management," the fund of funds concept allows investors to have exposure to multiple asset classes under the tent of one fund. While this concept has proven desirable over time, many firms that sponsor ETF fund of funds don't actually advertise them as such, leaving investors to do some of the digging on their own. A good place to start is with

. With that, let's have a look at some of the more intriguing ETF fund of funds options on the market today.

Not even two months old, the iShares Morningstar Multi-Asset Income Index Fund is the epitome of an ETF fund of funds. The ETF features a small allocation to cash, but its other nine holdings are all other iShares products. The roster includes familiar funds such as the iShares iBoxx $ High Yield Corporate Bond Fund

, the iShares Barclays 20+ Year Treasury Bond ETF

, the iShares S&P U.S. Preferred Stock Index Fund

and the iShares Dow Jones Select Dividend Index Fund

. That quartet represents approximately 55% of IYLD's weight. IYLD has risen slightly since its early April debut and has raked in $22.8 million in assets under management. Income investors should note this fund will pay a monthly dividend.

Another new entrant to the ETF game, the SPDR SSgA Income Allocation ETF is one of State Street Global Advisor's new actively managed products and it should be noted that the actively managed space is another area where investors can find multiple ETF fund of funds. Just over a month old, INKM is home to 18 holdings, 17 of which are other SPDR funds. As is the case with IYLD, the roster is chock full of ETFs many investors are already familiar with. The SPDR S&P Dividend ETF

, SPDR Barclays Capital Long CorpTerm Bond ETF

and the SPDR Barclays Capital High Yield Bond ETF

account for over 43% of INKM's weight.

One of the pioneers of the ETF fund of funds concept, the Russell Equity ETF is also one of the more unique and unbiased plays in this space. That is to say, ONEF is not loaded with other Russell funds. ONEF is home to 10 other ETFs, but only one, the Russell 1000 Low Volatility ETF

, is a Russell fund. The other nine holdings are comprised of five Vanguard and four iShares funds with the iShares Russell 1000 Index Fund

commanding over 47% of ONEF's weight. The Vanguard MSCI EAFE ETF

receives an allocation of over 19%. With an expense ratio of 0.51%, ONEF is cheaper than the iShares and SPDR offerings highlighted above.

Want an actively managed ETF fund of funds heavy on emerging markets? There's an ETF for that and that ETF is the AdvisorShares Accuvest Global Opportunities ETF. ACCU isn't 100% allocated to emerging markets ETFs as the iShares S&P 500 Index Fund

currently accounts for 13.5% of the fund's weight. ACCU's other five ETF holdings are sure to conjure up mixed emotions among emerging markets investors. The iShares FTSE China 25 Index Fund

receives a weight of almost 20% and that's fine on the basis of potential Chinese economic stimulus and on the premise that investors will embrace Chinese stocks at some point because they're cheap. We also like an almost 23% allocation, the ETF's largest, to the iShares MSCI Thailand Investable Market Index Fund

. What's holding ACCU back is a combined weight in excess of 26% to the iShares MSCI Brazil Index Fund

and the iShares MSCI South Africa Index Fund

, two emerging markets that have been punishing investors recently. The iShares MSCI South Korea Index Fund

is ACCU's other holding. For more on asset allocation ETFs, please click

.