FMD Capital Management

Posts Tagged: yyy

5 High Yield ETFs of CEFs For Tactical Income Investors

Written by David Fabian, April 07th, 2017

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

Are ETFs Made Up of CEFs Worth Owning?

Written by Michael Fabian, February 11th, 2016

While we are huge proponents of leveraging low cost and liquid ETFs for virtually every asset class; ETFs that invest in closed-end funds (CEFS) are a different story altogether.  The two funds that have garnered the most investor attention in this space are the PowerShares Closed End Fund Composite ETF (PCEF) and the Yieldshares High Income ETF (YYY).  Both contain a seemingly diverse array of underlying asset classes, sectors, and strategies. Read more

The Incredible Volatility of Closed End Funds

Written by Michael Fabian, July 10th, 2015

We are now past the halfway mark for 2015, and very little headway has been made for the vast majority of closed-end funds (CEFs).  Examination of the two most popular CEF indexes shows mixed results year-to-date.  The broadly diversified PowerShares Closed End Fund Composite ETF (PCEF) is only marginally higher, while the more narrow-focused YieldShares High Income ETF (YYY) has posted modest losses for 2015.  Read more

Capturing Yield with ETFs of CEFs

Written by David Fabian, June 05th, 2014

Many income investors are finding themselves in a conundrum that I have been talking about for some time now. The crux of the issue is that prices on dividend paying equities has risen to the point where generating a decent yield is tougher than ever. Right now the iShares Select Dividend ETF (DVY) pays a 30-day SEC yield of just 3.05% and many traditional fixed-income funds have seen their yields fall to that level or lower.   Read more

5 Key Strategies for ETF Income Investors

Written by David Fabian, April 02nd, 2014

Almost no other category of investing has experienced as much turmoil in the last 12 months as income investors have been subjected to.  Interest rates have been on a roller coaster ride that has churned the landscape for core themes in fixed-income, REITs, preferred stocks, and even dividend paying equities.  Years of low volatility in many of these categories had lulled income seekers into a false sense of security that led to jolting changes in a short period of time. Read more