Dividend Update – PCEF

Hello, on May 29, I received $24.56 goess dividend from my investment in POWERSHARES CEF INCOME COMPOSITE PORTFOLIO (PCEF). Although my investment in PCEF is now $416.49(-10.46%) out of the money, it is still profitable because I have kept this monthly dividend paying ETF for 24 months. YOC is 6.8% and the yield as of May 29 was a juicy 7.92%. This is not dividend growth ETF at all. Since I bought this shares, dividend per share has been fluctuating. The reason why I bought PCEF was 1) high yield, 2) as a non-resident alien, it is difficult to buy closed end funds because they are not necessarily open to non-resident aliens. I may add more PCEF shares to my portfolio on the dip going forward. PCEF’s strategy is to seek investment results that generally correspond (before fees and expenses) to the price and yield of the S-Network Composite Closed-End Fund IndexSM (the “underlying index”). The fund generally invests at least 90% of its total assets in securities of U.S.-listed closed-end funds that comprise the underlying index. It is a “fund of funds,” as it invests its assets in the common shares of funds included in the underlying index rather than in individual securities (the “underlying funds”).

Although Morning Start gives it three stars, its expense ratio is 1.88% outrageously high. I see it as a necessary cost because I am a non-resident alien.

With PCEF’s dividend, my gross dividend income for May 2015 has reached $918.92.




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