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Eaton Vance Tax-Advantaged Glob Message Board

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  • walsingmalinda walsingmalinda Jun 7, 2010 8:13 PM Flag

    The problem with ETG

    When you're comparing ETG and JLA, don't overlook what kind of dividend is being paid each fund. ETG has a dividend consisting of 100% income; whereas JLA consists of a lot of ROC. See for yourself on Good luck anyway. We still own ETG but dumped JLA because of excess ROC.

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    • What is wrong with ROC? Simply lowers your cost basis. In the meantime, ROC is not taxed. This is not an issue in tax-deferred account (IRA, for example). For taxable account, cap gains are still only 15%, same as dividend.

      But let's look at ETG vs JLA over the past two years. PPS for ETG has declined 37% (19.90 to 12.53) over that two year period. Over the same 2 year period, JLA pps declined on 13% (14.70 to 12.73). So much for the adverse effect of ROC on share price.

      Besides ROC is primarily the result of buy-write activities.

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