TWO NEW INCOME FUNDS
Global X Funds is a master of niche ETFs, and they have two new funds of interest for yield investors. Canada Preferred (CNPF) holds 58 Canadian TSO-listed preferred stocks which, as you would guess, are primarily bank issuances with 25% in other categories such as energy and utility stocks. Canadian banks withstood the havoc in US bank stocks partly due to more conservative personal real estate leverage, taxes, and a regulatory structure which did not favor the excesses of US homeowners, banks, and regulators. Looking at the lineup of holdings I'm guessing CNPF would pay approximately 5.25% annualized on a quarterly basis. http://globalxfunds.com/Fact_Sheet/Fund138.pdf One could build a sector in preferreds with CNPF and PFF. Most preferred funds of the past have been closed-ends or open-end mutuals.
The second new Global X fund is SuperDividend ETF fund (SDIV). This one is billed as holding the world's 100 highest dividend-paying stocks. http://globalxfunds.com/Fact_Sheet/Fund142.pdf Two-thirds of the holdings are US, Australian, and UK stocks. There are US mortgage REITs, business development stocks, telco and utilities and a wide range of other sectors. This I view as a high yield stock and as such it will have a lot of the characteristics of high yield bond funds. I'm guessing this one will pay somewhere around 8%.
As with other Global X funds, the annual fund costs are reasonable given the fact of the non-US stocks held. I bought initial positions in both of these new funds for tax-deferred accounts on Friday's down move. I may add to both funds which may permit me to downsize my position in Anworth Mortgage REIT (ANH) after it goes ex-dividend. If SDIV works out it would provide better diversification. Also both of these funds give some currency diversification for US
Global X Funds is a master of niche ETFs, and they have two new funds of interest for yield investors. Canada Preferred (CNPF) holds 58 Canadian TSO-listed preferred stocks which, as you would guess, are primarily bank issuances with 25% in other categories such as energy and utility stocks. Canadian banks withstood the havoc in US bank stocks partly due to more conservative personal real estate leverage, taxes, and a regulatory structure which did not favor the excesses of US homeowners, banks, and regulators. Looking at the lineup of holdings I'm guessing CNPF would pay approximately 5.25% annualized on a quarterly basis. http://globalxfunds.com/Fact_Sheet/Fund138.pdf One could build a sector in preferreds with CNPF and PFF. Most preferred funds of the past have been closed-ends or open-end mutuals.
The second new Global X fund is SuperDividend ETF fund (SDIV). This one is billed as holding the world's 100 highest dividend-paying stocks. http://globalxfunds.com/Fact_Sheet/Fund142.pdf Two-thirds of the holdings are US, Australian, and UK stocks. There are US mortgage REITs, business development stocks, telco and utilities and a wide range of other sectors. This I view as a high yield stock and as such it will have a lot of the characteristics of high yield bond funds. I'm guessing this one will pay somewhere around 8%.
As with other Global X funds, the annual fund costs are reasonable given the fact of the non-US stocks held. I bought initial positions in both of these new funds for tax-deferred accounts on Friday's down move. I may add to both funds which may permit me to downsize my position in Anworth Mortgage REIT (ANH) after it goes ex-dividend. If SDIV works out it would provide better diversification. Also both of these funds give some currency diversification for US
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