Comments on: Interest, dividends, capital gains – an all-in-one investment strategy, Part 1 http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/ Investing for beginners Mon, 28 Dec 2009 16:51:12 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: a1-fan-fun » Bloggers Are Not Interested In Free Stumbles http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/comment-page-1/#comment-1404 a1-fan-fun » Bloggers Are Not Interested In Free Stumbles Sat, 05 Jan 2008 01:11:46 +0000 http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/#comment-1404 [...] * Interest, dividends, capital gains - an all-in-one investment strategy, Part 1 [...] [...] * Interest, dividends, capital gains – an all-in-one investment strategy, Part 1 [...]

]]> By: moneyrelations http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/comment-page-1/#comment-1312 moneyrelations Wed, 26 Dec 2007 13:39:05 +0000 http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/#comment-1312 Hi Max, Regardless of the ETF in question (or any company for that matter), if it declares a dividend and you are the shareholder of record, you will receive it on payout date. This is central to the strategy. I had to know what the dividend was to evaluate the risks in the swing trade. In essence, I am "locking in" this dividend - I will receive it. The question now is how much I'd gain/lose from selling the shares. Hi Max,

Regardless of the ETF in question (or any company for that matter), if it declares a dividend and you are the shareholder of record, you will receive it on payout date.

This is central to the strategy. I had to know what the dividend was to evaluate the risks in the swing trade. In essence, I am “locking in” this dividend – I will receive it. The question now is how much I’d gain/lose from selling the shares.

]]> By: max http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/comment-page-1/#comment-1310 max Wed, 26 Dec 2007 06:38:52 +0000 http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/#comment-1310 there is another question that I have about these funds QID & QLD - especially the short ETF funds and that is does a dividend get taken away from a fund that is short some index. If you are shorting a stock and a dividend gets paided, you have to fork up the dividend if you are a short holder. Amd it appears that EFTs are paying dividends on the long side, my question has to be, do you loose a dividend by holding a short fund? Example, did QLD holders loose a 5 percent dividend while QID holders gain one? there is another question that I have about these funds QID & QLD – especially the short ETF funds and that is does a dividend get taken away from a fund that is short some index.

If you are shorting a stock and a dividend gets paided, you have to fork up the dividend if you are a short holder.

Amd it appears that EFTs are paying dividends on the long side, my question has to be, do you loose a dividend by holding a short fund?

Example, did QLD holders loose a 5 percent dividend while QID holders gain one?

]]> By: max http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/comment-page-1/#comment-1306 max Wed, 26 Dec 2007 04:49:52 +0000 http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/#comment-1306 I've heard this before that - Derivative contracts are priced to reflect the underlying index yield and will not generate dividend income. Because ProShares invest in derivatives, they will not have dividend distributions that reflect those of their applicable indexes I’ve heard this before that – Derivative contracts are priced to reflect the underlying index yield and will not generate dividend income. Because ProShares invest in derivatives, they will not have dividend distributions that reflect those of their applicable indexes

]]> By: moneyrelations http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/comment-page-1/#comment-1284 moneyrelations Sun, 23 Dec 2007 01:04:40 +0000 http://www.moneyrelations.com/2007/12/17/interest-dividends-capital-gains-an-all-in-one-investment-strategy-part-1/#comment-1284 @ max Interesting question because it confused me. This is good as I get to learn. :) The QLD which you speak of tracks twice the performance of the Nasdaq-100 while the QID I bought tracks twice the inverse. What confused me is that when I looked up the ProShares distributions, I first thought the QLD had a dividend of 0.07221, UNTIL I added up all the S.T. Cap Gain, L.T. Cap Gain which totalled $5.088. Hrm. So you call it a capital gain, I call it a dividend :) It must be a Canadian/American tax law thing. Let's just call it a distribution. In any case, I bought the QID at $40.32 and it closed Friday at $36.95. If you add back the distribution of $0.47 I'm down $3.84. You did give me something to think about with the QLD. The distribution was certainly unexpected given its previous quarters and it does illustrate that it didn't drop $5 on Ex-dividend date. Still, it is a bit cost prohibitive at $100 /sh. And it's not as liquid as the QID. Not that QID is all that liquid to begin with. And in a volatile market... @ Ellesse Hah! Thanks. This blog certainly is helpful as sometimes I go back to read my own definitions. Seeing that I wrote them, they make all kinds of sense to me :) I've never kept any sort of diary before so it has been fascinating reading my thought process at certain points in time. And thanks for the suggestion of the comments feed. I guess it's not prominent enough in the corner. I will add a link under my posts. I actually won a blog design and he has delivered but there's still some customization I want to do. But there just isn't enough time in a day... @ max

Interesting question because it confused me. This is good as I get to learn. :) The QLD which you speak of tracks twice the performance of the Nasdaq-100 while the QID I bought tracks twice the inverse.

What confused me is that when I looked up the ProShares distributions, I first thought the QLD had a dividend of 0.07221, UNTIL I added up all the S.T. Cap Gain, L.T. Cap Gain which totalled $5.088. Hrm. So you call it a capital gain, I call it a dividend :) It must be a Canadian/American tax law thing. Let’s just call it a distribution.

In any case, I bought the QID at $40.32 and it closed Friday at $36.95. If you add back the distribution of $0.47 I’m down $3.84.

You did give me something to think about with the QLD. The distribution was certainly unexpected given its previous quarters and it does illustrate that it didn’t drop $5 on Ex-dividend date. Still, it is a bit cost prohibitive at $100 /sh.

And it’s not as liquid as the QID. Not that QID is all that liquid to begin with. And in a volatile market…

@ Ellesse

Hah! Thanks. This blog certainly is helpful as sometimes I go back to read my own definitions. Seeing that I wrote them, they make all kinds of sense to me :) I’ve never kept any sort of diary before so it has been fascinating reading my thought process at certain points in time.

And thanks for the suggestion of the comments feed. I guess it’s not prominent enough in the corner. I will add a link under my posts.

I actually won a blog design and he has delivered but there’s still some customization I want to do. But there just isn’t enough time in a day…

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