Wednesday, December 11, 2013

Idea for an Income ETF

How about an ETF that pays around 1% interest/dividends a month?

To do this, we'd have to include: mortgage REITs, like AGNC.
We'd want foreign government bonds, and the highest yielding stocks and puts and calls.
This fund could perhaps buy GIM with leverage.

Another idea would be to buy non U.S. currencies which earn much higher interest than the U.S. dollar.

To keep interest income near 1% a month, a big weighting would have to be in MREITs.
But I'd diversify and use options and leverage.

I wouldn't include U.S. treasuries as interest rates in the U.S. are so low.