Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
I have some PGX, PFF and CPXCX that I bought back in 08-09, at dirt cheap levels in a full service broker account. I believe these funds also use some leverage to juice their returns and they might be holding some junk stuff, too. Although they do provide some diversity, I also decided in 2014 to create my own "preferred fund", purchasing below par preferreds and holding until they're called or I die. Created in 10/14 at FIDO, with $100,000, it is currently $121,000 as I reinvest my divvies in other issues. I generally buy only 200 shares of each issue but on occasion I have DCA downward. I have also moved about $10,000 of that account to a Roth.
I'm very happy with my results, no panic, no worries, steady as she goes.
Yes, I knew once you buy, you get married, so that was why I was teasing you. These leveraged funds are going to face head winds with the compression of the yield curve happening. Some of these actually “protect” the divi by returning capital instead of actual preferred divi payments. A different type of investment. Not my thing, but that doesnt mean its bad. I just prefer to stay unlevered and eat my own cooking.