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.
BIZD – Business 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.