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08-04-2015 , 05:13 PM

homeboy604

veteran

Join Date: Jul 2006 Posts: 3,360

Any opinion on these?
did a search and they have never come up in BFI

seems like you would under perform in bull markets, but would outperform in a sideways market such as the one we find ourselves currently in.

http://www.etf.com/sections/features...n-vances-etmfs

http://seekingalpha.com/article/3395...osed-end-funds

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08-04-2015 , 07:58 PM

Mossberg

Pooh-Bah

Join Date: Dec 2005 Posts: 5,857

Quote:

Originally Posted by homeboy604

seems like you would under perform in bull markets, but would outperform in a sideways market

Can you please explain why you believe this to be true?

Just from reading that first article, I fail to see how they could be superior to regular ETFs.

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08-04-2015 , 11:30 PM

homeboy604

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Join Date: Jul 2006 Posts: 3,360

short answer is they use options to increase the yield. in a sideways market your index etf isnt growing in market value and is probably paying you 1-2% in yield. these ETMF's that track the same major indices pay 7-11% yield.
I know very little about them since i just started reading about them today but that etf.com article explains them pretty well.
anxious for someone with some knowledge of these to chime in.

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08-06-2015 , 06:18 PM

homeboy604

veteran

Join Date: Jul 2006 Posts: 3,360

nobody has an opinion here?
seems like a good way to collect some yield in a side ways market.

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