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Ron Rowland

 
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  • DVHI: New ETRACS Diversified High-Income ETN An Attractive Offering [View article]
    Yes, as stated in article, CVY, MDIV, and IYLD are competitors. I haven't performed a detailed comparison yet, but the major difference is that DVHI is an ETN where as the others are ETFs.

    I forgot to mention in the article that UBS ETRACS has many 2x leveraged monthly pay ETNs, and DVHI could be laying the groundwork for a future leveraged version.
    Sep 21 02:23 PM | Likes Like |Link to Comment
  • UBS Mortgage REIT ETP Yielding 27% [View article]
    Bad news folks: today's +7.3% price gain of MORL to $20.66 drops its current yield from 27.0% to just 25.2%.
    Sep 18 04:58 PM | 1 Like Like |Link to Comment
  • UBS Mortgage REIT ETP Yielding 27% [View article]
    explained in article
    Sep 18 01:44 PM | 1 Like Like |Link to Comment
  • UBS Mortgage REIT ETP Yielding 27% [View article]
    MORL's underlying Market Vectors Global Mortgage REITs Index is a float-adjusted, market-capitalization weighted index of publicly-traded mortgage REITs.
    Sep 18 12:07 PM | Likes Like |Link to Comment
  • UBS Mortgage REIT ETP Yielding 27% [View article]
    The UBS website does not mention anything about options. MORT, the unleveraged version (link in article above) states that options are expected. You would need to contact Van Eck Global as to an anticipated launch date for those options.
    Sep 18 11:06 AM | Likes Like |Link to Comment
  • UBS Mortgage REIT ETP Yielding 27% [View article]
    Yes, the sector is (perhaps was) in a bear market. Another performance data point would include its 5-week total return of +20.0% (8/19-9/17/13).
    Sep 18 10:54 AM | 1 Like Like |Link to Comment
  • UBS Mortgage REIT ETP Yielding 27% [View article]
    Everyone I know uses ETP to refer to the superset of ETFs and ETNs, including most ETF & ETN sponsors. I would take objection to the Investopedia definition, as I don't know anyone who uses the ETV terminology. I have heard of ETCs though, which they seem to miss.

    I used ETP to make the point MORL was the highest yielding "product" among both ETFs and ETNs. I apologize if I confused you.
    Sep 18 10:26 AM | 1 Like Like |Link to Comment
  • MLP ETF Expenses Hit The Fan [View article]
    Regulated Investment Companies ("RICs") are limited to a maximum of 25% allocation to MLPs. Beyond 25%, they cannot operate as pass-through entities.
    Sep 13 03:12 PM | Likes Like |Link to Comment
  • EGShares Sticking Shareholders With Cost Of Closing 12 ETFs [View article]
    Representatives of EGA contacted me to inform me that although shareholders remaining in the funds will bear the costs of closing, those costs will not exceed the annual expense ratio cap of 0.85%.
    http://bit.ly/18RZhlJ
    Sep 10 12:31 PM | Likes Like |Link to Comment
  • MLPX: New Global X ETF Not An MLP ETF [View article]
    Not sure what you mean by "suitable". All ETFs and ETNs can be held IRAs. If you are referring to the UBIT that is associated with holding MLPs directly, that is not an issue when the MLPs are wrapped inside of an ETF or ETN.

    MLPs are tax-sheltered investments to begin with. You are much much better off holding them in a taxable account. Holding them in an IRA or in a C-corp (like MLP ETFs do) destroys their tax-efficiency.

    EMLP has significantly underperformed MLP ETNs. Its performance has been more closely aligned with the AMLP C-corp performance. My belief is that it is due to the tax drag - in one case (AMLP) it comes from the fund structure, from the other (EMLP) it comes from holding taxable C-corps. Neither gives you untaxed MLP exposure.
    Sep 9 12:55 PM | 1 Like Like |Link to Comment
  • MLP ETF Expenses Hit The Fan [View article]
    All of the MLP ETFs and ETNs are indexed. MLPN is based on the Cushing 30 MLP Index, which happens to be equal weighted and therefore weights some of the smaller MLPs more heavily than the various Alerian indexes.
    Sep 8 12:17 PM | 1 Like Like |Link to Comment
  • MLPX: New Global X ETF Not An MLP ETF [View article]
    I think it was only AMLP's 6th consecutive increase (plus its only been in existence for 3 years = 12 quarters).

    Even holding until you die, your distributions will become taxable to you after about 14 years once your cost basis goes to zero. Your heirs will likely be eligible for a step-up in basis, even though it could be lagging its index by 140% after 20 years (assuming the 7% per year lag continues).
    Sep 2 02:50 PM | 1 Like Like |Link to Comment
  • MLPX: New Global X ETF Not An MLP ETF [View article]
    "Question: Does this ETF pay corporate income taxes on distributions the are Return of Capital?"

    Answer: Eventually, but not in the current year. AMLP's current "reported" expense ratio of 11.73% does not include any taxes paid on the ROC distributions it received. However, since the ROC reduces the cost basis, the tax liability is merely deferred until time of sale (not tax free) to the best of my knowledge. Additionally, once the cost basis of any MLP holding reaches zero, then all future ROCs received will be taxable in the year received.

    Yes, you are getting a 6% yield, but if you read my other article, then you are aware that it is costing you more than that in the capital appreciation it is taking from you.
    http://seekingalpha.co...
    Sep 1 11:42 AM | 2 Likes Like |Link to Comment
  • MLPX: New Global X ETF Not An MLP ETF [View article]
    No. Funds like MLPX (whether ETFs, CEFs, or Mutual Funds) that keep their MLP holdings to 25% or less do not pay any taxes at the fund entity level.

    However, MLPX's other 75% of holdings are C-corps that do pay taxes while the MLPs constituting 25% of the portfolio do not. Therefore, you as an MLPX (or any 25/75 fund) shareholder have double-taxation on 75% of your position and single-taxation on 25%. This is nothing new, even though the MLPX marketing makes it sound like it is.
    Sep 1 11:27 AM | 1 Like Like |Link to Comment
  • Market Vectors Russia Small-Cap ETF Now Trading [View article]
    Yes, this is troublesome from a number of perspectives:
    1) Quindell does not fit their requirement of being "incorporated in Russia, or that generate the majority of their revenue in Russia."
    2) The underlying index does not contain Quindell
    3) Van Eck stated their management strategy for this fund is "replication" which is incorrect if the index and holdings do not match

    It could be the result of a typo in RSXJ's holdings, but whatever it is, Van Eck has some explaining to do.
    Aug 29 05:11 PM | Likes Like |Link to Comment
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