This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Don Dion's Weekly ETF Blog Wrap

NEW YORK ( TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next.

In the following three blogs from the past week Don offered cautionary advice on a new closed-end ETF, explained why gold-backed ETFs are good to hold for the long term, and advised investors to keep a certain bellwether agriculture ETF in their long-term holdings.

Wait for This Closed-End ETF to Prove Itself

Posted 02/19/2009 12:09 p.m. EST

Today, PowerShares launched the first exchange-traded fund of closed-end funds (CEFs), the PowerShares CEF Income Composite Portfolio ETF (PCEF).

On paper, PCEF looks like an innovative, tax-efficient income option for investors looking to gain exposure to a broad spectrum of CEFs. Where the rubber hits the road, however, this fund may not have the goods to appeal to ETF investors.

Since CEF's have "pass-through" tax structures, like open-end mutual funds, they do not pay taxes at the fund level on amounts distributed to investors. The taxation is said to "pass through" to the shareholders.

Shareholders of PCEF will receive this income and tax benefit in the form of dividends. PCEF consists of CEFs across three income categories: taxable investment-grade fixed-income, taxable high-yield fixed-income and equity option writing (selling).

PCEF's methodology is also designed to screen and weight funds according to their discount to NAV. Funds trading at a discount have a higher potential for yield.

> > Bull or Bear? Vote in Our Poll

The top five holdings in PCEF are currently the Eaton Vance Limited Duration Income Fund (EVV), NFJ Dividend & Premium Strategy Fund (NFJ), AllianceBernstein Income Fund (ACG), Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) and the BlackRock Global Opportunities Equity Trust (BOE).

Sounds good, right?
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IAU $11.94 -0.75%
MOO $42.70 1.14%
PCEF $19.70 -0.16%
DE $78.27 2.43%
AAPL $93.99 0.31%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs