CEFL October Monthly Dividend Will Be Sharply Lower, But Don't Be Alarmed

The UBS ETRACS Monthly Pay 2x Leveraged Closed-End Fund ETN (NYSEARCA: CEFL) and YieldShares High Income ETF (NYSEARCA: YYY), which is based on the same index and thus has the same components as CEFL, but without the 2X leverage, will soon declare monthly dividends for October 2014. There are 30 closed-end funds that comprise the ISE High Income Index upon which CEFL and YYY is based. As is shown in the table below, of those 30, there are now only 3 that pay dividends quarterly, while the other 27 pay dividends monthly. Last month there were 8 of the components that paid quarterly. The change is the result of the decision by 5 BlackRock funds to switch from paying dividends quarterly to monthly. One of the components, BlackRock Global Opportunities Equity Trust (NYSE: BOE) had switched from paying quarterly to paying monthly earlier. All of the 3 component closed-end funds that pay dividends... Read more