MLPA: Another C-Corp Double Taxation ETF
And then there were three. The listing of Global X MLP ETF (MLPA) today (4/19/12) makes it the third ETF structured as a C-corporation, thereby subjecting its shareholders to the heavy burden of double-taxation on taxable income received from the fund and all capital gains. Like its two predecessors,...
YMLP: Another Abomination of the ETF Wrapper
There are 1,441 ETFs and ETNs listed for trading today. 1,439 of them are not structured as C-corporations and, therefore, generally not liable for any federal or state taxes. The other two ETFs do have a C-corporation structure, which is costing their shareholders millions of dollars (more than...
New ETRACS VIX ETNs With 5.35% Annual Expenses
UBS on September 8 rolled out a dozen ETNs targeting long and short (inverse) exposure to VIX futures at six monthly maturity intervals. The new exchange-traded notes are anticipated to mature in 30 years. The inverse versions include an “Event Risk Weekly Hedge Cost” that saddles investors with...
New Guggenheim Funds Are Not New
Despite what you may have read, Guggenheim did not launch any new ETFs last week. You can safely ignore the headline in the Guggenheim press release. What really happened is buried deep within that press releasewhose headline is totally wrong: as of June 1, 2011, some already-existing ETFs received...
Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds
If you think the “2 and 20” fee structure of most hedge funds is astronomical, then wait until you hear about the “1 and 37” structure of Alerian MLP ETF (AMLP). The “2 and 20” structure refers to fees and expenses computed from 2% of the assets and 20% of the profits. For AMLP, the fees...
Are Airlines Toast?
Like a lot of people, I used to enjoy flying. Packing up, going to the airport, standing in line, and jetting off to exotic places like Chicago was a welcome break in my otherwise non-adventurous life. No more. Now I view airline travel as an occasional necessary evil. New security measures resulting...
Totally Obscene UMM DMM Expense Ratio
In the ETF world, which MacroShares strives to be a part of, low expense ratios are expected. Those in excess of 1% typically receive harsh criticism. Most sponsors recognize this fact and work tirelessly to reduce fees and cap expenses for their shareholders. MacroShares took a different route,...
SEC Tries To Get Efficient
Under criticism for letting Bernie Madoff’s scheme drag on for years, the Securities & Exchange Commission is trying to improve itself and rebuild its image. This is an excellent idea, and good timing too, given that the people who ignored Madoff for so long have now moved on to bigger and...
Deflation Means No COLA for Seniors
Sorry, senior citizens: there will be no cost-of-living adjustment in your Social Security payments this year. You are victims of deflation. Today the Labor Department reported that the Consumer Price Index rose 0.2% in September and fell -1.3% in the last twelve months. This was no great surprise,...
Bankrupt Deadbeat Banks Stiff Taxpayers
Only a few weeks ago, We The People seemed to be turning a profit on the U.S. Treasury’s investment in banks via the Troubled Asset Relief Program, or TARP. Not so fast. Yes, a few banks repaid the government with interest. As I noted at the time, their main motivation was probably to escape...
