Nuveen ETF's

[73ss454]

Can anyone who has experience with Nuveen investments vehicles comment on them.
I was thinking of putting some money into a new issue coming out on January 24th. The symbol is JSN.
The yearly fee from the fund is .70 for the first 5 years.
But what is confusing is how they charge the commissions that are paid when the money is put in. I think that it's 4.5% but some how comes out of the ipo price.
When I spoke to the guy a Nuveen he said it should pay about 8 1/2 to 9% yearly.
I smell a rat, any help would be great.
Thanks,
JOE

 

[John Galt]

Hello JOE. I would stay away.

JG

 

[ak4195]

73ss,after a quick scan of about half of the prospectus theres a few things that you need to know.You need to know that MOST new closed end funds drop immediately after being "sold".its sorta like a stock IPO i havent figured out what the "recievers" get unless they get some sweet initial deal.They can easily lose 10-20% in price in a period of say 1-3 weeks.From what i read,this is an option based trend following system,based on the premium or discount of the value of index options both calls and puts.An interesting idea,but i would shy away from it personally,give it some time to wash out.A bit disturbing but i couldnt find how they generate the 8-9% yield.Generally this is done with leverage,which depending on your risk aversion needs to be given some attention.IF your looking to put "safe" money here personally i would think twice.If you want to take on the risk perhaps with a small allocation for kicks i would wait a few weeks at the minimum as i said,the tendancy is to sell off and then stabilize.Keep in mind that with closed end funds "CEFS" that current price can vary from net asset value,ive done well by buying a small handfull at times of steep discount.Good luck and think about the points ive brought up.ak

 

[73ss454]

AK,
Thanks for the response.
I think that I'm going to put the money into a few VanGuard funds and call it a day.
Hoping to retire the end of this year and just want to invest the money for income and forget it.
ESRBOB helped me out with some good reading a few months ago and with all the other reading of posts here I think VanGuard funds would be best for me.
It didn't hit me until I read about the amount these brokers are taking from investors. If they take 1% it doesn't sound like much until you think that if your averaging 5% and they get only 1% it's ac tually 20% not 1%.
Thanks to all the posters for making it eaiser for me to leave the rat race.
Regards,
JOE