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9 comments:
The YOUTUBE message stopped for me
after 46 seconds. I don't know if the
problem is at your end or mine. I will wait for other comments to tell
me.
Anonymous...I was able to view it in its entirety.
I can't view it...or even see the preview. I can't access YouTube.com either. They might be having server problems.
the first comment was a one off. The YouTube site appears to be down now, I just tried to go to the site.
My model's top ranked U.S. sectors as of this week.
U.S. Telecommunications 6.5
U.S. Pharmaceuticals 5.5
U.S. Banks 3.5
U.S. Financials 3.5
U.S. Consumer Goods 3.5
U.S. Health Care 3.0
U.S. Technology 3.0
U.S. Semiconductor 3.0
My timing model is still 100% equities.
My country model's top ranked ETFs.
MSCI Netherlands Index Fund EWN 3
MSCI Spain Index Fund EWP 3
MSCI Belgium Index Fund EWK 3
MSCI Mexico Index Fund EWW 3
MSCI Singapore Index Fund EWS 2
MSCI Switzerland Index Fund EWL 2
MSCI EMU Index Fund EZU 2
MSCI Sweden Index Fund EWD 2
S&P Latin America Index Fund ILF 2
Almost forgot - model weights
U.S. 60%
EAFE 40%
Emerging Markets 0%
Roger, I read your blog every day.
You told a viewer that if he shorts a dividend paying stock he has to pay the dividend. Actually, he pays an amount equal to the dividend. Otherwise someone who shorted a stock that paid a qualified dividend would then have to pay a qualified dividend which makes no sense.
Which leads to a question about dividend ETFs: MarketWatch has a story by John Spence that tells how most ETFs lend shares to enhance return. The story is titled "Qualifying heat" and it came out on the 16th. The link is too long or I would post it. These funds effectively lend the stock in the ETFs to entities that sell it short. They lose title. The short sellers pay PIL or Payment In Lieu of Dividend which does not qualify as "qualified" dividend. From the article: "Securities lending, which is a common practice among index funds and ETFs to enhance returns, can also have an effect on QDI. Since managers of indexed portfolios tend to hold stocks for the long-term, they often earn extra income for the fund by loaning shares for a fee to other financial institutions, which become the registered owners while the stock is on loan, Sauter explained."
Should investors consider this? Does it make sense to own an ETF that receives its dividends primarily from stocks that pay qualified dividends, i.e., not trusts?
Thank you,
Bidrec
i was not technical but you are correct. I read that article too. Later on in the article someone was quoted as saying that there are only pennies involved with this also per the article this was more of an issue in 2004.
Taxes tends to be a very subjective thing, some people care more than I would think and some don't care at all. This would not be my first consideration or even my second.
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