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Garrett Beauvais

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  • High Yield ETFs May Soon See Attractive Entry Points [View article]
    Thank you for your comments and clarifications. A good article brief article covering qualified vs non-qualified dividends can be found on Schwab's site (bit.ly/bSov2Q). BlackRock also has a number of closed end high yield bond funds (look them up on cefconnect.com) that at times can trade at attractive discounts to NAV. One that I use frequently is HYV.
    Feb 8 03:44 PM | Likes Like |Link to Comment
  • 5%+ Dividend Yields in the S&P 500 [View article]
    Hmmm... which two major S&P industry groups have been laggards in the current rally that started in March? Telecom & utilities. How convenient!
    Nov 23 12:19 AM | 1 Like Like |Link to Comment
  • The Vital Few: ETFs Ranked by Average Daily Value Traded [View article]
    I continue to be surprised that the India ETFs lag so far behind the other BRIC country ETFs in volume and also that the EDC volume is so miniscule compared to EEM.
    Nov 12 08:43 PM | 1 Like Like |Link to Comment
  • 9% Yields Still Available on Municipal Bond Funds [View article]
    Why all longer term interest bearing vehicles (bonds) got hammered yesterday: tinyurl.com/yjjnulv (Bloomberg).


    On Oct 09 03:56 PM willydo wrote:

    > Garrett,
    >
    > Why are closed in Muni Funds selling off today? NZF is off 3.5%.
    > I see dividends are coming out next Tues but I have not seen these
    > funds drop this much before. Is anything else going on? (IMT, IIM,
    > NZF, MUA)
    > Thanks,
    > Willydo
    Oct 10 01:23 PM | 1 Like Like |Link to Comment
  • 9% Yields Still Available on Municipal Bond Funds [View article]
    On Yahoo! Finance choose "ETF profile" from the navigation in the right column: finance.yahoo.com/q/pr... -- look on the bottom left under "Fund Operations" -- LQD has an expense ratio of 0.15% which is among the lowest for ETFs (about the same as treasury ETFs and far less than 0.4% for JNK and 0.5% for HYG).


    On Oct 09 12:44 PM Dotcom wrote:

    > How can I see the fees/expenses for a specific ETF? I'm looking
    > at Yahoo Finance symbol LQD as an example. Thanks for any help.
    Oct 9 02:52 PM | Likes Like |Link to Comment
  • 9% Yields Still Available on Municipal Bond Funds [View article]
    Often times annuities are so restricted that they can be undesirable both in terms of liquidity and investment vehicles. Annuities look more attractive well into multi-year bull markets where a guaranteed minimum return makes more sense. A simple 50MA/200MA crossover is a reasonable (good but not perfect) bull/bear gauge (see markettrendadvisors.co...).


    On Oct 09 09:40 AM felixjj wrote:

    > Gotta ask, what investment pays 11% with principal protection? annuity?
    Oct 9 12:03 PM | Likes Like |Link to Comment
  • 9% Yields Still Available on Municipal Bond Funds [View article]
    Sure, the expenses can be high, they range from approx. 1.2%-2.2% for this list but the dividend yields are net of expenses so focusing on the expenses seems like a distraction. Liquidity is commonly an issue as you point out -- need to buy on dips with limit orders and use trailing stops to protect your principal. Occasionally a large shareholder will cash out of a fund all at once and there will be an abnormal drop in price as they flood the market with shares.


    On Oct 09 08:31 AM Living4Dividends wrote:

    > The leveraged Muni bond fund is an interesting concept.
    >
    > You forgot to mention several downsides:
    > 1.) The Expense Ratios are high - 1% or higher - this is 15% of a
    > 6% pre-tax yield (9% tax equivalent yield)
    > 2.) These are CEFs - the discount could get a lot lower. Because
    > CEFs do not trade at NAV, they can sometimes act like a roach motel.
    > They have poor liquidity.
    > 3.) These CEFs make their "high profits" while overcoming high Expense
    > by using leverage. The leverage strategy normally involves a maturity
    > mismatch. Not a bad idea to borrow short at 1% and lend long at 6%.
    > The problem is that when short interest rates rise above 6%, these
    > guys will be left holding the bag. Leverage is profitable, but risky.
    >
    >
    > I like your ideas. If you can show me a low cost ETF that employs
    > a leveraged strategy, I would be very interested.
    Oct 9 11:56 AM | 2 Likes Like |Link to Comment
  • Muni Bond Funds Look More Expensive but Demand's Still Strong [View article]
    Hi Joe, one of the attributes that we actively monitor in our newsletter are the funds that have increased their dividend over the prior 12-month period. Last time I checked (a couple of months ago) 21 out of the 107 that we actively follow has increased their dividend. We have found a fairly strong and not surprising relationship between the increase in dividends and the capital appreciation of the funds.


    On Aug 24 11:42 AM Joe Eqcome wrote:

    > Garret
    >
    > I’ve been looking at CEF distributions based on net investment income.
    > I was surprised to learn that a significant segment of muni CEFs
    > have increased their dividends in the past 12 months.
    >
    > I’m not sure whether this is a function of a change in the composition
    > or cost of leverage—some of the ARPS have some pretty low default
    > rates. Or whether it is a function of a temporary suspension of the
    > distribution of the underlying munis that have been reinstated? Or,
    > lastly, the net investment income characterization of the distribution
    > may be temporary and might be changed at fiscal year end.
    >
    > I guess the point is that distributions have risen for the muni CEFs
    > which can have an impact on the distribution yield expectation and
    > capital appreciation of the underlying shares.
    >
    > Whether the distribution increases will continue is subject to additional
    > study.
    >
    > Joe Eqcome
    Aug 25 11:47 AM | 2 Likes Like |Link to Comment
  • Closed End Funds Lag the Market Advance [View article]
    Hi Joe, thanks for the great overview of the recent CEF action and changes. What do you use for your data feed / source if I may ask? Also, as I follow the national muni CEFs pretty closely, I have noticed that a not insignificant number (around 37 out of 107) are now trading at a premium to NAV which tends to portend a return to historical discount levels despite the relatively high yields. Have an opinion on this? Thanks.
    Aug 24 07:57 PM | 1 Like Like |Link to Comment
  • U.S. Natural Gas ETF: What You Need to Know [View article]
    Natural gas is cheap by almost any historical measure and ~59% of natural gas is used for industrial production and power generation making an increase in the base price likely as the economy resumes growth. Still, as the author points out, UNG is trading at a 14% premium to NAV which is enough reason in itself to stay away from UNG.
    Aug 24 12:29 PM | 3 Likes Like |Link to Comment
  • McKinsey: 28% of Asset Managers Suffering from 'Depression and Denial' [View article]
    Our AUM has suffered despite our strong 2008 performance as clients took hits from all directions: job losses, weak 401k returns, real estate losses etc. And now many advisors are focused on how to hide their poor results... no wonder they are depressed. BTW, feel free to contact me for our historical performance - we have nothing to hide.
    Aug 24 12:18 PM | Likes Like |Link to Comment
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