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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (3486)	1/25/2010 5:16:26 PM
From: JimisJim	Respond to of 34328

Many of them are in the high range vs. mutual funds... however, that is not the only slippage that occurs in terms of fees as the leveraged ETFs incur lots of daily fees that are counted separately from their stated annual fee/expense -- fees for trading futures and other paper instruments that make it possible for them to ATTEMPT to match 2X or 3X the daily movement in price of the underlying index. And these fees are deducted daily (from ETF NAV, not directly from investor as I understand it) as they clear their sheets for the next trading day. Jim

To: Elroy who wrote (3486)	1/25/2010 9:00:21 PM
From: Steve Felix	Read Replies (1) \| Respond to of 34328

"and potentially make lots of money" Potentially for investors, guaranteed for the funds. At a friends, talking about dividends, he told me he was invested in a dividend fund. AIM Diversified Dividend A \| LCEAX When I got home I had to look it up. invescoaim.com Expense ratio for the class A shares he owns is 1.01%. Everything I wanted to see was on page 12. Dividends: 37,727,065. Total expenses: 12,438,224. Fully 31% of their income went to fees and expenses. Advisory fees alone were 16.8% of income. Puts their 1.01% expense ratio in a new light.