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Author: globalist2013 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Bond Substitutes Date: 5/12/2013 12:15 PM
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Bond investing is mainly an ord-inc game (as opposed to a cap-gains game) until one gets fairly far down the credit-spectrum. Those looking for yield often consider REITs. So I was poking around in some real estate ETFs just now and noticed RWX.

Ticker Underlying Div-Rate
SPY US stocks 2.03
IYR US REITs 3.52
RWX Int’l Real Estate 6.20

Now comes the perennial question: How much principal are you willing to trade away for an income-stream?

By my eye, to bet on IYR is to bet on the broad market and pick up a bit more yield. http://finance.yahoo.com/echarts?s=IYR+Interactive#symbol=iy...

If RWX is added into the chart, almost the same bet is being made, but with twice the yield (per the table above). However, the run for RWX looks to be rolling over. http://finance.yahoo.com/echarts?s=IYR+Interactive#symbol=iy...

So, let’s look at IYR and RWX in more detail.
http://stockcharts.com/h-sc/ui?s=IYR&p=D&yr=0&mn...
http://stockcharts.com/h-sc/ui?s=RWX&p=D&yr=0&mn...

RWX would be harder to trade, right? on a short-term basis. But how does it look on a chart as an investor might plot it? http://stockcharts.com/h-sc/ui?s=RWX&p=W&yr=1&mn...

Charlie
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The Standard Disclaimers apply to this post. Do your own due-diligence.
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