Elliott

ETF Update: Japan Goes Global; PowerShares Clean Energy; Is the Worst of the Market Chaos Over?; Endangered Internet ETF; Dividend Based ETFs

Dividend ETFs: this is where I think closed end funds have an advantage. ETFs always trade at NAV, so whatever dividend yield they pull in is what you get. OTOH, if you buy a CEF at discount to NAV, that has the effect of raising the yield. In other words, for a CEF at NAV with yield 5% would have a yield of 6% if the CEF is trading at a 10% discount. Same income stream divided by a smaller principal.

ETF PHJ has a yield of only 1.9%. CEF BDJ, Blackrock "Enhanced Dividend Achievers Trust," trades at a discount of -7.6% (close $12.94 and NAV is 14.01). BDJ's yield is 9.4%.