On Mar 2, 5:04 am, Chris Fasano <ChrisFas...[at]verizon.net> wrote:

<snip
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That does not make sense to me, but I am unfamiliar with the
accounting of UITs. It sounds like they invested $100K when interest
rates were around 7.8% = (12*650/100000), but if that were the case,
the value of the principal should now exceed $100K (there have been
capital gains as interest rates fell) and should now be gradually
FALLING to $100K because of the "pull-to-par" effect of bonds.

On Tue, 27 Feb 2007 08:35:31 -0600, darkness39 wrote:

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Thank you all so much. I've read in this group before an explanation of
how not to be duped by funds which payout "income" when what they're doing
is actually returning part of the principle along with interest &
dividends.

This Claymore Series 6 UIT my parents have is paying right around $650 per
month consistently every month on a $100,000 purchase, and the value of
the UIT shares seem to be increasing slightly and consistently. So for
their retirement we're pleasantly surprised, but still leery about not
understanding something which the broker hasn't been forthcoming about.
So perhaps ETFs aren't the way to go, but in this group and elsewhere I
read about them being low cost if they're bought and held, which
presumably translates into higher earnings or NAV increases somewhere.

So, again, thanks all for your help.

On Feb 27, 10:03 am, Chris Fasano <ChrisFas...[at]verizon.net> wrote:
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http://www.etftrends.com/2007/01/more_fixed_inco.html discusses bond
ETFs.

I am not familiar (in an American context) with a Unit Investment
Trust, so I can't directly answer your question.

http://www.sec.gov/answers/uit.htm reading that, they sound very much
like CEFs.

http://www.closed-endfunds.com/FundS...sDetailResults

is a selector which can help you pick out Closed End Bond funds.

Particularly with bonds, risk and return are highly correlated. A
fund which is giving a higher yield, is *normally* doing something
riskier. Exceptions are during market panics or slumps (closed end
fund discounts to NAV increase) *or* if a fund is small (and therefore
illiquid).

On Feb 27, 2:03 am, Chris Fasano <ChrisFas...[at]verizon.net> wrote:
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I would wait a few months--Vanguard is planning on some new bond ETFs
this year that should suit your needs I've read.

RL

On Feb 27, 4:03 am, Chris Fasano <ChrisFas...[at]verizon.net> wrote:
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How about a leveraged dividend and income fund from Nuveen. The
current distribution rate is 7.5%,payable monthly.

Frank

On Feb 27, 5:03 am, Chris Fasano <ChrisFas...[at]verizon.net> wrote:
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Must it be an ETF? There is exist "target maturity" open-end bond
mutual funds, which like UITs and unlike conventional bond funds, have
a maturity date.

I'm trying to find an ETF which throws off reasonably consistent interest
income similar to that of a Unit Investment Trust which owns bonds. Can't
seem to track this down; anyone?