Setting reasonable expectations for dividend income is an aspect of investing that many retirees have yet to embrace. With 10-Year Treasury yields hovering in the low two percent range, there is generally a need for other investment options to supplement high quality fixed-income. This is often when investors turn to exchange-traded funds that track a basket of riskier assets to generate the income they desire or to chase a top-performing market sector.
In this month’s video, I look at the technical trends developing in growth versus value stocks. Chart review includes analysis of large-cap, small cap, international, Treasury bonds, and high yield bond ETF prices. Observations of risk and reward are noted throughout, with an emphasis on trend following and sensible portfolio management. Recorded on May 31, 2017.
I was fortunate enough to be invited to speak at the Las Vegas Money Show this week and chose to deliver an educational presentation on closed-end funds (CEFs). My focus was on the right way to analyze, select, size, and trade these unique investment vehicles.
There are a number of advantages to using CEFs in your portfolio – from bolstering your high yield exposure to tapping into an active investment managers’ prowess. Whatever your goal may be, these tools can be an effective way to generate income and alpha when used correctly. Below are the PowerPoint slides from my presentation that you can download to view.
The hot hand in the closed-end fund marketplace this year are global equity funds. These diversified portfolios own a mix of U.S. and international stocks with the added boost of embedded leverage. Some also employ options or other derivative strategies to generate a portion of the abundant income that is distributed to shareholders. Read more
Many investors are making the right choice to build their core portfolios around low-cost, liquid, and diversified ETFs geared towards dividend paying stocks and bonds. These funds provide transparent exposure to a broad range of asset classes without the drag of high expenses.
While this core exposure is important, there may also be a desire to further diversify your holdings towards alternative investment styles with a penchant for higher yields. This is the foremost objective behind ETFs that invest in a basket of closed-end funds (CEFs). Read more