01-26-2015, 07:04 PM
I own the following leveraged ETNs: DVYL, HDLV, MLPL, MORL. This does not involve any borrowing by me, so I can own these in my IRA, and I do.
Margin rates are based on 3 month LIBOR. A fixed margin is added to LIBOR, ranging from 0 (MLPL) to 0.60% (DVYL).
Current markets are a bit scary for any large commitments to these, with the exception of MLPL, in my opinion. MLPL tracks the Alerian MLP Infrastructure Index, which is composed entirely of midstream MLPs. These do not have direct exposure to commodity prices, but they have been sold off along with the upstream MLPs. This in my opinion makes little sense, so I have a bit more in MLPL than the others.
Another way I use leverage is with mortgage REITs. I do not leverage these directly, but they have high leverage built in. My position in MORL is about 0.10% of my portfolio. I keep it as an experiment, not as a meaningful source of income.
I use all of these positions to fund income from my IRAs. I am at the RMD age so I need the income, and the hope is that the income will stay ahead of the ever-rising RMD percentage.
Margin rates are based on 3 month LIBOR. A fixed margin is added to LIBOR, ranging from 0 (MLPL) to 0.60% (DVYL).
Current markets are a bit scary for any large commitments to these, with the exception of MLPL, in my opinion. MLPL tracks the Alerian MLP Infrastructure Index, which is composed entirely of midstream MLPs. These do not have direct exposure to commodity prices, but they have been sold off along with the upstream MLPs. This in my opinion makes little sense, so I have a bit more in MLPL than the others.
Another way I use leverage is with mortgage REITs. I do not leverage these directly, but they have high leverage built in. My position in MORL is about 0.10% of my portfolio. I keep it as an experiment, not as a meaningful source of income.
I use all of these positions to fund income from my IRAs. I am at the RMD age so I need the income, and the hope is that the income will stay ahead of the ever-rising RMD percentage.