Here's How We Get Free Shares

Summary

• Our Tactical Income portfolio gained +10% of free shares of ECC in 2 months.
• This was equivalent to DRIPing 1 year's worth of the fund!
• Join us to get updated CLO numbers and real-time trade alerts.

Our membership is exceptionally popular because we help you:

• (1) Identify the most profitable CEF and ETF opportunities.
• (2) Earn a ~8% dividend yield together with capital appreciation.
• (3) Avoid the overpriced funds that can sink your portfolio.

The great news is that we’re currently offering a limited-time-only free trial so there's no better time to try us out! Start generating safe and reliable 8% yields from our portfolios today!

Best Present Ever!

====================

Here's How We Get Free Shares

We made another great move on our swap strategy of "compounding income on steroids" that saw us gain 10% of free shares in ECC in only two months' time!

These alerts are exclusive to members of the CEF/ETF Income Laboratory. However, we are sharing the trade from last Monday (February 22) to show how easy it is and how others can replicate the same success.

Not to mention, this trade was a continuation of gaining free shares two months prior to this as well!

Here was our trade alert:

------------------------------------

Tactical Income-100 portfolio

Two months (Dec. 18, 2020) ago, we did this...

Sold: Eagle Point Credit Company (ECC) at $10.14 (~7% allocation, 1110 shares)

Added: OFS Credit Company (OCCI) at $12.07 (~7% allocation, 930 shares)

Today, we're swapping back to grow our share count in ECC by +10% in 2 months.

• Sold: OFS Credit Company (OCCI) at $15.01 (~sold 12% allocation, 1216 shares)
• Bought: Eagle Point Credit Company (ECC) at $11.48 (~10% allocation, 1220 shares)

With CLO equity prices increasing significantly since our last trade, together with compulsory DRIPs from three quarters of OCCI's distributions, our OCCI position had grown to nearly 12% of our entire portfolio. This was probably too high a level for a single position in a CLO equity fund (the riskiest tranche of the CLO structure), hence it made sense to drop the allocation back to the ~10% level. Remember, we also own a ~5% allocation to Eagle Point Income Fund (EIC), which is mostly focused on CLO debt but which also has a small CLO equity position.

Data by YCharts

How did we arrive at the +10% increase of ECC shares? Two months ago, we sold 1110 shares of ECC at $10.14 ($11255) to buy 930 shares of OCCI at $12.07 ($11225). Today, we're selling those same 930 shares of OCCI at $15.01 ($13959) to buy 1220 shares of ECC at $11.48 ($14006). Hence, we got 110 shares of ECC "for free", equivalent to DRIPing over one year's worth of distributions from the stock! See this guide on how our "double compounding" strategy works: How Would You Like Your Free Shares To Be Served? (Double-Compound Your Income!).

Since April 2020, this is how our share counts of the ECC/OCCI pair have grown:

• ECC: 860 (Apr. 21, 2020) --> 1060 (Jun. 11, 2020) --> 1110 (Dec. 16, 2020) --> 1220 (Jan. 22, 2021)
• OCCI: 750 (May 28, 2020) --> 785 (Jun. 24, 2020) --> 930 (Dec. 18, 2020)

This means we have grown our position in ECC by +42% in less than one year, purely through CEF rotation. Yes, you read that right, an outperform of +42% vs. purely buy-and-hold. Remember, no DRIPing was required at any time as all distributions were received in cash! 

The reason for swapping from OCCI to ECC was simple: valuation. As you will see from our CEF Watchlist, OCCI's +6.79% premium puts makes it over 10 points more expensive than ECC which sports a discount of -3.92%. Whereas historically, ECC had been the more expensive fund, so we thought we would harvest this differential now and grab our +10% of "free shares" of ECC with this swap. Note that these premium/discount are computed from the latest NAV numbers from the end of January for both funds, so are comparable (at other times, you have to be careful when you only have the latest NAV update for one of the funds, with the other being more stale). This is why I always remind our members: valuation matters when buying CEFs - even for CLO funds!  

We track the CLO pricing because Morningstar/CEFConnect does not update the pricing when new NAV reports are posted monthly. Yet another feature worth considering for any CLO CEF investor!

====================

Take advantage of our annual membership and free trial

Take us for a free trial! That allows you to test out our service on a no-risk, commitment-free basis. You'll also get to experience our vibrant community of over one thousand income-orientated CEF and ETF investors, counting numerous full-time and professional traders and investors amongst our ranks.

If you're not satisfied, simply cancel before your 2-week period is over and you won't be charged a single penny.

With an annual membership, you save 25% versus the monthly membership. There's no better time to try us out!

The CEF/ETF Income Laboratory membership normally costs $588 per year (on a monthly plan). That gets you 1000's of research hours conducted on your behalf each year by our team of experts which we share with our members at only a fraction of the cost. Today, you have the opportunity to access a discounted price of $439/year (25% off) by joining us on an annual plan.

All members are grandfathered for life at the membership rate that they signed up at (note: excludes any introductory discounts). So I highly suggest that you lock in the current rate while you still can.

Remember, "time = money", so being able to save hundreds of hours of time of CEF and ETF research each month with what amounts to the price of a cup of coffee every few days is truly an incredible bargain. And our members agree!

====================

"Don't head into retirement without Income Laboratory!"

Consider reading some of the reviews that members of the community have left us!

====================

CEF/ETF Income Laboratory: Profitable CEF and ETF Income and Arbitrage Ideas

Whether you're a novice or experienced closed-end fund ("CEF") and exchange-traded fund ("ETF") investor, the "Income Lab" is the right place for you. Our goal is to help you benefit from income and arbitrage strategies in CEFs and ETFs, all without having to be an expert, because we do the heavy lifting for you. If that sounds like something you'd be interested in, we hope you'll consider joining us here at CEF/ETF Income Laboratory.

We would love for you to join us. We are sure that you will enjoy our service and benefit from what we have to offer!

Sincerely,

Stanford Chemist, Nick Ackerman, Juan de la Hoz and Dividend Seeker