Tech Talk: So You’re Looking For Income

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In a recent post I talked about VanEck Vectors India Small Cap (SCIF), which remains in breakout mode. I own several VanEck ETFs, and I am pleased so far. The problem I have with the franchise is that its website makes so little information available about their offerings.

Don’t despair, however. There’s a great site that provides a lot of useful information about their offerings, and those of other ETF issuers.

On the matter of YMLP (chart above), you will see that the only marks I have made are in red. The circle in February shows when VanEck took over this operation. The X last month shows a golden cross – the bullish signal which occurs when the 50-day moving average definitively crosses up through the 200-day MA.

If you believe that the markets might slip into the doldrums between now and Halloween, when the usual big year end surge is likely to begin, then you might consider unloading some of your losers and putting them in this vehicle for a month or so. I have done so.

VanEck Vectors turned YMLP into a master limited partnership (MLP). That means it now combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. Since distributions are taxed at the corporate level before being passed on to investors, this structure underexposes unit holders to its index by an amount equal to its corporate tax rate.

Of course, I am just guessing that this is right for me. I’m certainly not recommending it as either a buy or a sell.

Disclosure: None.

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