Really? In less than a day I can write the software to run this fund for arbitrarily many investors. It takes one trade per day and a once a month rebalance. Might have to spend a little longer getting the program to put out correct 1099's.
What's the issue? You are paying someone else to do a swap for you. Since you probably can't do the swap yourself, this is a reasonable plan if you want 2X S&P dividend return.
The monthly compounding has some of the issues of daily compounding but is much more like entering the straight up swap. I can tell you that in hedge funds I have managed, I do monthly rebalancing and everyone seems to like that fine.
This is an incredibly complex question to be asking on Yahoo Answers. I would ask this on a investing forum.
It is a very good idea
It is a very good idea
you know how they say "2x leveraged ETFs like SSO might not go up 2X over the long-run because the daily compounding could hurt it".....
well instead of daily-compounding.......
this is a vehicle that does monthly-compounding.......
so it compounds less often and therefore should come a lot closer to meeting the 2X goal over the long-run.
DVYL and SDYL
they have lower expense ratios than the traditional leveraged ETFs.
they also have higher yields.
supposedly, DVYL is based on 2X DVY (Dow Jones Dividend etf)
and SDYL is based on 2X SDY (S & P Dividend etf)
DVY and SDY both yield about 3%.........
DVYL and SDYL yield about 6%, I guess they are programmed to double the yield since it's 2X leverage.
So far seems good...........
but the one downside: DVYL and SDYL are low-volume.
I don't know if the low-volume should necessarily be cause for concern.......could low-volume cause abnormal activity that may cause these things not to work the way they are programmed to work?
they've been in existence for about 2 years now, and thus far, they have been producing the promised returns quite accurately.
