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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (40561)	12/13/2010 4:19:09 PM
From: Madharry	Respond to of 78702

the real question is what sort of positive real interest rate are you getting on your money? and what are the risks? i dont know those etfs at all, but as an ex banker I'm always suspicious that the loans may not be as stellar as one would hope when the *** hits the fan. myself i would rather be in a reit or mlp if i am looking for income.

To: Wallace Rivers who wrote (40561)	12/14/2010 12:14:17 AM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78702

What I wonder about FRA and VVR (less FRB) and FLC/FFC mentioned on Dale's thread is the leverage. Assuming the rates go up, doesn't the interest expense for the fund go up faster than the rates of securities in it? Maybe that's not true for floating rate funds? Maybe it depends how steep is the yield curve? I still hate the fees in these funds. FRA is cheapest at 1.22%, but even with that you lose ~20% of the yield to fees. It seems all these funds are cap gain trading vehicles and not really yield vehicles. If you don't get cap gains, you're getting subpar yields.