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User 86999 » Comments » BSR

  • Yes, Virginia, There are High Dividend ETNs  [View article]
    Unfortunately, there are tedious taxation issues (think K-1) involved in owning currencies or commodities with "partnership" and "grantor trust" types, that these vehicles are not suitable for individual investors. Various fund issuers sometimes don't even have the prospectus available on their site (I remember having trouble with Barclays), and if you find one, you cannot clearly gain proper taxation information. You are advised to consult some tax advisers to "explain" the prospectus to you. If the fund issuers themselves are unable to clearly explain the basic taxation (no individual special cases), implying that the taxation is too complicated under all the novel "schemes", you can imagine the nightmare for a back street individual. Even your tax adviser may not be a specialist in such cases, you need to find someone who is actually familiar with these issues. Yahoo boards have more information on K-1 issues.
    Aug 27 09:41 am |Rating: 0 0 |Link to Comment
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