Toby

Treasury Inflation Protected Securities ETF

When you look at the holdings of the iShares TIP ETF, the fund appears to be leveraged. You have to look at the annual or 6-mo reports to find this information. For example the annual report shows:

$6.35 B in actual TIP bonds
$2.85 B in Money Market Funds
______
$9.20 B Total investments
-$2.79 B Liabilities
______
$6.41 B Net Investment

Can anyone explain what's going on with these 'liabilities'? Their other gov't bond funds appear to be run similarly.

TIP ETF: A High Dividend Stock and Inflation Hedge?

Anyone know when TIP will pay its next dividend?

Global High Income Fund Offers Up a Juicy 13.7% Yield

Marol,

Yes, you're correct that the stock theoretically drops by the same amount of the dividend. You gain from the dividends because they're in your pocket and spendable, rather than the company or fund retaining the funds to increase inherent value. My understanding is that CEFs are required to pay out all of their income from dividends, though this may not entirely correct. Probably most holders of CEFs want the dividends to provide current income, and are willing to sacrifice this for longer term capital gains.

Global High Income Fund Offers Up a Juicy 13.7% Yield

ETFConnect.com shows GHI's latest monthly dividend at $0.1065 per share, for at yield of 8.4%, considerably below 13.7% indicated by the author. The same website also reveals that GHI has paid out year-end capital gains distributions only four times since their inception in 1993, so it's not something one should count on to increase the 'yield'. That being said, the average annual return since inception has been 13.7% (based on share price) and 12.8% (based on NAV)......not too shabby for a fixed-income fund.