THE MONTH AHEAD (IRA): EX. CANADA/U.S. ETF'S FOR DIVIDENDS
Updated
It shouldn't come as a massive shocker to anyone that the U.S. market has been and has gotten even more expensive. For an investor that is just starting out, it is enormously frustrating, since virtually everything is at the top of a very long term trajectory with the broad market yet again knocking at the door of all-time-highs.
Here are a few acquisition ideas for ex. U.S./Canada exchange-traded funds that pay in excess of SPY (1.90%), IWM (1.33%), QQQ (.84%), and DIA (2.21%) and TLT (average 20-year maturity treasuries) (2.22%). To put things in some additional context: HYG (High Yield Corporate Bonds) is paying 5.29% (paid monthly), EMB (Emerging Market Bonds) -- 5.45%, XLU (Utilities) -- 2.93% (paid quarterly), and IYR (REIT) -- 2.63%.*
EEM: Emerging Market. It gets huge volume (79 million 90-day) and is extremely liquid on the options side of things. The downside is that you get about TLT is currently paying in yield -- 2.22%, paid out quarterly, and fund managers had to muck it up by sticking a whole bunch of China in there. If I wanted to play a Chinese exchange-traded fund, I'd play one (e.g., FXI).
EFA: Behind the funky acronym (MSCI EAFE), this is basically a world excluding the U.S. and Canada exchange-traded fund. Sporting a 3.18% yield, it pays dividends every six months, trades healthy share volume (90-day average 18.3 million), and has good options expiry availability and liquidity, a must for investors looking to go short put/acquire/cover.
EWA: Australia. Granted, the share volume isn't great (1.7 million 90-day), but the yield is 5.54%. Expiry availability isn't fantastic and neither is option liquidity. Dividends pay out twice a year. 21.82/share as of Friday close.
EWG: Germany. 90-day 1.98 million shares average. 2.83% paid once a year. Decent expiry availability/liquidity. 26.44/share as of Friday close.
EWI: Italy. 90-day 1.90 million shares on average. 4.63% paid out once every six months. Expiry availability/liquidity isn't great, with the general solution being to be "fill picky." 26.95 as of Friday close.
EWW: Mexico. 90-day 3.20 million shares traded on average. 4.17% paid out twice a year. Good expiry availability and option liquidity. 43.64 as of Friday close.
EWT: Taiwan. 90-day 5.80 million shares traded. 2.74% paid out once a year. Expiry availability isn't great and neither is options liquidity. 36.71 as of Friday close.
EWZ: Brazil. 90-day 21.58 million shares traded. 2.71% paid out every six months. Excellent expiry availability/options liquidity. 42.11 as of Friday close.
RSX: Russia. 90-day 5.58 million shares traded. 4.31% yield paid out once a year. Expiry availability/options liquidity decent and decent. 22.51 as of Friday close.
The general play on these would be short put, acquire, then cover. Naturally, you'll probably want to drill into the charts on each of these to determine which ones might be trading at a discount.
* -- IYR, XLU, and EMB have ripped higher recently, so are kind of out of range of prices at which I'd like to acquire. Forever the optimist, however, I've got a couple "not a penny more" short puts hanging out there in XLU and HYG. (See Posts Below).
Here are a few acquisition ideas for ex. U.S./Canada exchange-traded funds that pay in excess of SPY (1.90%), IWM (1.33%), QQQ (.84%), and DIA (2.21%) and TLT (average 20-year maturity treasuries) (2.22%). To put things in some additional context: HYG (High Yield Corporate Bonds) is paying 5.29% (paid monthly), EMB (Emerging Market Bonds) -- 5.45%, XLU (Utilities) -- 2.93% (paid quarterly), and IYR (REIT) -- 2.63%.*
EEM: Emerging Market. It gets huge volume (79 million 90-day) and is extremely liquid on the options side of things. The downside is that you get about TLT is currently paying in yield -- 2.22%, paid out quarterly, and fund managers had to muck it up by sticking a whole bunch of China in there. If I wanted to play a Chinese exchange-traded fund, I'd play one (e.g., FXI).
EFA: Behind the funky acronym (MSCI EAFE), this is basically a world excluding the U.S. and Canada exchange-traded fund. Sporting a 3.18% yield, it pays dividends every six months, trades healthy share volume (90-day average 18.3 million), and has good options expiry availability and liquidity, a must for investors looking to go short put/acquire/cover.
EWA: Australia. Granted, the share volume isn't great (1.7 million 90-day), but the yield is 5.54%. Expiry availability isn't fantastic and neither is option liquidity. Dividends pay out twice a year. 21.82/share as of Friday close.
EWG: Germany. 90-day 1.98 million shares average. 2.83% paid once a year. Decent expiry availability/liquidity. 26.44/share as of Friday close.
EWI: Italy. 90-day 1.90 million shares on average. 4.63% paid out once every six months. Expiry availability/liquidity isn't great, with the general solution being to be "fill picky." 26.95 as of Friday close.
EWW: Mexico. 90-day 3.20 million shares traded on average. 4.17% paid out twice a year. Good expiry availability and option liquidity. 43.64 as of Friday close.
EWT: Taiwan. 90-day 5.80 million shares traded. 2.74% paid out once a year. Expiry availability isn't great and neither is options liquidity. 36.71 as of Friday close.
EWZ: Brazil. 90-day 21.58 million shares traded. 2.71% paid out every six months. Excellent expiry availability/options liquidity. 42.11 as of Friday close.
RSX: Russia. 90-day 5.58 million shares traded. 4.31% yield paid out once a year. Expiry availability/options liquidity decent and decent. 22.51 as of Friday close.
The general play on these would be short put, acquire, then cover. Naturally, you'll probably want to drill into the charts on each of these to determine which ones might be trading at a discount.
* -- IYR, XLU, and EMB have ripped higher recently, so are kind of out of range of prices at which I'd like to acquire. Forever the optimist, however, I've got a couple "not a penny more" short puts hanging out there in XLU and HYG. (See Posts Below).
Note
Got a chance to look at most of these "live" today. Unfortunately, a lot looks good on paper, but not so good when you go to get filled. EWW, EWZ, and EEM were nicely liquid; the higher yield stuff (EWA, EWI, RSX) wasn't. The best of the most liquid was EWW, so went with a short put there, got filled at the mid immediately.
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