High Yeild -Income Streams

The primary income trading vehicles for this blog are the Yeildshares High Income ETF YYY and the Etracs Monthly Pay 2x Leveraged Closed End Fund ETN CEFL

The Big Three leveraged ETN are:

CEFL – Etracs Monthly Pay 2x Leveraged Closed-End Fund ETN Yield – 16%. Pays a monthly dividend coupon payment.

BDCL – Etracs 2x Leveraged Business Development Company Index . Current Div Yield 17% – Pays quarterly

MORL – Etracs Monthly Pay 2x Leveraged Mortgage REIT ETN 20.11% – pays quarterly

These Three ETN’s also have market cap over $200 Million and spot Yields 15-20%.

The un-leveraged ETF’s:

YYY – Yeildshares  High Income ETF.

BIZDBusiness Development Company Income ETF

REM – ishares Mortgage Real estate Capped ETF
The Goal is $2,000 monthly income from coupon payments.

Here are few articles help you better understand some of these products why the distributions are so high.

Excessive Dividends – Seeking Alpha

 


* If you thought (and I do) that interest rates and economic conditions will  remain relatively stable and thus CEFL would continue to yield 18.8% on a compounded basis, the return on a strategy of reinvesting all dividends combined with a trend following timing model would be enormous. An investment of $100,000 would be worth $236,305 in as few as five years. More interestingly, for those investing for future income, the income from the initial $100,000 would increase from the $18,800 initial annual rate to $44,425 annually.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s