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PCEF > A Fixed Income ETF With Decent Capital Appreciation Down The Road
A Fixed Income ETF With Decent Capital Appreciation Down The Road
“This fund kicks out a decent yield, and I wouldn’t be surprised to see some decent capital appreciation down the road. We have heard of closed-end funds buying exchange-traded funds as part of their portfolio; it only makes sense. After all, it is a fast way to invest in the market or a market segment quickly, cheaply and easily,” Richard Lehmann Reports From Forbes.
Lehmann goes on to say, “Turnabout is fair play, and ETF creators have come up with a twist, an ETF that buys closed-end funds. The PowerShares CEF Income Composite Portfolio ETF (PCEF) invests in income-producing closed-end funds that use three different investment approaches. The broad classes are investment grade, noninvestment grade and buy-write option funds. The fund sponsors claim the benefit of the new ETF is that it offers diversification by asset class, investment strategy and investment manager. In addition to such diversification, the fund offers high current yield and a high discount to net asset value in its holdings.”
“We like this ETF for the same reasons we like closed-end funds: the opportunity to buy $1 worth of stock for 90 cents. The fund is buying a significant portion of the closed-end income fund universe, giving the holder instant diversification. We would prefer an entry point with a deeper discount than is currently available, but we like the idea of the fund and will keep an eye on it as a possibility for future investment. Now all we need is a closed-end fund that buys this ETF, and we have a snake-eating-its-tail situation,” Lehmann Reports.
See The Full Story: HERE
Here are some details on the PowerShares CEF Income Composite Portfolio ETF (PCEF) below:
The PowerShares CEF Income Composite Portfolio ETF (PCEF) is based on the S-Network Composite Closed-End Fund IndexSM (Index). The Fund will normally invest at least 80% of its total assets in securities of funds included in the Index. The Fund is a “fund of funds,” as it invests its assets in the common shares of funds included in the Index rather than in individual securities. The Index currently includes closed-end funds that invest in taxable investment grade fixed-income securities, taxable high yield fixed-income securities and others utilize an equity option writing (selling) strategy.
| PCEF – CEF Income Composite Portfolio |
| As of 3/11/2010 |
| Fund Holdings are subject to change |
|
 |
Current Income
53.50% |
|
| (EVV |
Eaton Vance Limited Duration Income Fund |
5.21% |
| (ACG) |
AllianceBernstein Income Fund Inc. |
4.14% |
| (AWF) |
AllianceBernstein Global High Income Fund Inc. |
2.83% |
| (JPS) |
Nuveen Quality Preferred Income Fund 2 |
2.50% |
| (PPT) |
Putnam Premier Income Trust |
2.35% |
| (WIW) |
Western Asset/Claymore Inflation-Linked Opportunities & Income Fund |
2.18% |
| (BLW) |
BlackRock Ltd. Duration Income Trust |
1.98% |
| (PTY) |
PIMCO Corporate Opportunity Fund |
1.96% |
| (JSN) |
Nuveen Equity Premium Opportunity Fund |
1.85% |
| (HCF) |
Highland Credit Strategies Fund |
1.59% |
| (EFT) |
Eaton Vance Floating Rate Income Trust |
1.58% |
| (MMT) |
MFS Multimarket Income Trust |
1.54% |
| (TEI) |
Templeton Emerging Markets Income Fund |
1.47% |
| (BKT) |
BlackRock Income Trust Inc. |
1.44% |
| (PSY) |
BlackRock Credit Allocation Income Trust II Inc. |
1.38% |
| (JTP) |
Nuveen Quality Preferred Income Fund |
1.37% |
| (MCR) |
MFS Charter Income Trust |
1.37% |
| (EMD) |
Western Asset Emerging Markets Income Fund Inc. |
1.25% |
| (FTF) |
Franklin Templeton Ltd. Duration Income Trust |
1.18% |
| (EVG) |
Eaton Vance Short Duration Divirsified Income Fund |
1.07% |
| (BHK) |
BlackRock Core Bond Trust |
0.98% |
| (HYV) |
BlackRock Corporate High Yield Fund V Inc. |
0.96% |
| (WIA) |
Western Asset/Claymore Inflation-Linked Securities & Income Fund |
0.96% |
| (GHI) |
Global High Income Fund Inc. |
0.91% |
| (BNA) |
BlackRock Income Opportunity Trust Inc. |
0.89% |
| (HIO) |
Western Asset High Income Opportunity Fund Inc. |
0.85% |
| (EFR) |
Eaton Vance Senior Floating-Rate Fund |
0.82% |
| (PCN) |
PIMCO Corporate Income Fund |
0.82% |
| (PIM) |
Putnam Master Intermediate Income Trust |
0.75% |
| (FAM) |
First Trust/Aberdeen Global Opportunity Income Fund |
0.75% |
| (MSD) |
Morgan Stanley Emerging Markets Debt Fund Inc. |
0.73% |
| (HYB) |
New America High Income Fund Inc. |
0.64% |
| (DUC) |
Duff & Phelps Utility & Corporate Bond Trust Inc. |
0.53% |
| (BGT) |
BlackRock Floating Rate Income Trust |
0.52% |
| (SBW) |
Western Asset Worldwide Income Fund Inc. |
0.52% |
| (VBF) |
Van Kampen Bond Fund |
0.46% |
| (MGF) |
MFS Government Markets Income Trust |
0.45% |
| (MHY) |
Western Asset Managed High Income Portfolio Inc. |
0.44% |
| (JGG) |
Nuveen Global Government Enhanced Income Fund |
0.28% |
|
|
Equity Income
11.60% |
|
| (ETY) |
Eaton Vance Tax-Managed Diversified Equity Income Fund |
4.13% |
| (IGD) |
ING Global Equity Dividend & Premium Opportunity Fund |
2.20% |
| (BTZ) |
BlackRock Credit Allocation Income Trust IV |
2.17% |
| (JPZ) |
Nuveen Equity Premium Income Fund |
1.32% |
| (EOI) |
Eaton Vance Enhanced Equity Income Fund |
1.03% |
| (ETB) |
Eaton Vance Tax-Managed Buy-Write Income Fund |
0.75% |
|
|
Growth
0.93% |
|
| (JLA) |
Nuveen Equity Premium Advantage Fund |
0.93% |
|
|
Growth and Income
20.98% |
|
| (NFJ) |
NFJ Dividend & Premium Strategy Fund |
5.39% |
| (BOE) |
Blackrock Global Opportunities Equity Trust |
2.80% |
| (ETW) |
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund |
2.70% |
| (BGY) |
Blackrock International Growth & Income Trust |
1.90% |
| (ETV) |
Eaton Vance Tax-Managed Buy-Write Opportunities Fund |
1.47% |
| (EOS) |
Eaton Vance Enhanced Equity Income Fund II |
0.98% |
| (BDJ) |
BlackRock Enhanced Dividend Achievers Trust |
0.97% |
| (JGV) |
Nuveen Global Value Opportunities Fund |
0.95% |
| (FFA) |
First Trust Enhanced Equity Income Fund |
0.78% |
| (JPG) |
Nuveen Equity Premium & Growth Fund |
0.65% |
| (IGA) |
ING Global Advantage & Premium Opportunity Fund |
0.56% |
| (MCN) |
Madison/Claymore Covered Call Equity Strategy Fund |
0.54% |
| (LCM) |
Advent/Claymore Enhanced Growth & Income Fund |
0.47% |
| (QQQX) |
NASDAQ Premium Income & Growth Fund Inc. |
0.39% |
| (DPD) |
Dow 30 Premium & Dividend Income Fund Inc. |
0.24% |
| (RCC) |
Small Cap Premium & Dividend Income Fund Inc. |
0.19% |
|
|
Sector Funds
3.93% |
|
| (BGR) |
BlackRock Energy & Resources Trust |
1.99% |
| (BCF) |
BlackRock Real Asset Equity Trust |
1.94% |
|
|
Total Return
9.06% |
|
| (JPC) |
Nuveen Multi-Strategy Income & Growth Fund |
2.71% |
| (GIM) |
Templeton Global Income Fund |
2.02% |
| (ESD) |
Western Asset Emerging Markets Debt Fund Inc. |
1.69% |
| (MIN) |
MFS Intermediate Income Trust |
1.67% |
| (SGL) |
Strategic Global Income Fund Inc. |
0.67% |
| (EGF) |
BlackRock Enhanced Government Fund Inc. |
0.30% |
|
Related posts:
- PowerShares Set To Begin Trading The “PowerShares CEF Income Composite Portfolio” (PCEF) Friday
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