Freedom56
Thinks s/he gets paid by the post
You called them ETFs the funds call themselves ETFs. If they are true CEFs, you should be able to compute the liquidation price.
Just be aware of what you bought:
The PowerShares BulletShares® 2020 Corporate Bond Portfolio (Fund) is based on the Nasdaq Bulletshares® USD Corporate Bond 2020 Index (Index). The Fund will invest at least 80% of its total assets in corporate bonds that comprise the Index. The Index is designed to represent the performance of a held-to-maturity portfolio of US dollar-denominated, investment-grade corporate bonds with effective maturities in 2020. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a "sampling" methodology to seek to achieve its investment objective. The Fund and the Index are rebalanced monthly. The Fund has a designated year of maturity of 2020 and will terminate on or about Dec. 31, 2020. See the prospectus for more information.
Fluctuation of Yield and Liquidation Amount Risk. The Fund, unlike a direct investment in a bond that has a level coupon payment and a fixed payment at maturity, will make distributions of income that vary over time. Unlike a direct investment in bonds, the break down of returns between Fund distributions and liquidation proceeds are not predictable at the time of your investment. For example, at times during the Fund’s existence, it may make distributions at a greater (or lesser) rate than the coupon payments received on the Fund’s portfolio, which will result in the Fund returning a lesser (or greater) amount on liquidation than would otherwise be the case.The rate of Fund distribution payments may adversely affect the tax characterization of your returns from an investment in the Fund relative to a direct investment in corporate bonds. If the amount you receive as liquidation proceeds upon the Fund’s termination is higher or lower than your cost basis, you may experience a gain or loss for tax purposes
Liquidity and Valuation Risk. It may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price, or the price at which it has been valued by the Adviser for purposes of the Fund’s NAV, causing the Fund to be less liquid and unable to realize what the Adviser believes should be the price of the investment. Valuation of Fund investments may be difficult, such as during periods of market turmoil or reduced liquidity, and for investments that may, for example,trade infrequently or irregularly. In these and other circumstances,an investment may be valued using fair value methodologies,which are inherently subjective, reflect good faith judgments based on available information and may not accurately estimate the price at which the Fund could sell the investment at that time.These risks may be heightened for fixed-income instruments because of the historically low interest rate environment as of the date of this prospectus.
Last edited:
