Just came across an offering from Powershares that provides an ETF of all CEF funds of funds--essentially all debt type issues--PCEF. It has a mix of domestic and international and currently yields 7.8%. Price has been reasonably stable since it came to market in 2010. Average discount to market in portfolio is 7.5% according to Kiplinger article that is the source of my interest.
Major downside is 1.9% expense ratio but then they are managing a basket of funds. Largest position is PIMCO Dynamic Credit Income Fund (3.6%). Top 10 largest positions total around 25% of portfolio.
Thinking of putting in my IRA to enjoy the 7.8% yield but am struggling with the expense ratio. Still not much out there I can hold as a single position, get diversity and still carry a 7+% yield.
Comments, please
Major downside is 1.9% expense ratio but then they are managing a basket of funds. Largest position is PIMCO Dynamic Credit Income Fund (3.6%). Top 10 largest positions total around 25% of portfolio.
Thinking of putting in my IRA to enjoy the 7.8% yield but am struggling with the expense ratio. Still not much out there I can hold as a single position, get diversity and still carry a 7+% yield.
Comments, please