Bond ETF...is there a catch here?

D

dac8555

Hi guys. I am starting to exclusively trade ETFs. I shouldnt advertise this...but it really sems to be too good to be true.


Check out SHY. this is the lehman 1-3 year bond ETF.

-what do you see there?
on the last day of each month it takes a drop of between 20 and 75 cents before it starts the next month. I am gussing becuse it is a coupon adjustment. not a lot...i know...but seemingly quick and easy.

am i missing something? is that just too easy?
 
Quote from dac8555:

Hi guys. I am starting to exclusively trade ETFs. I shouldnt advertise this...but it really sems to be too good to be true.


Check out SHY. this is the lehman 1-3 year bond ETF.

-what do you see there?
on the last day of each month it takes a drop of between 20 and 75 cents before it starts the next month. I am gussing becuse it is a coupon adjustment. not a lot...i know...but seemingly quick and easy.

am i missing something? is that just too easy?
More...

I would guess the coupon payout is not re-invested.
 
right, i would assume the same thing on the coupon...but if you look at the other bond funds...IEF, TLT..they dont take that monthly drop.

maybe if i contacted Ishares and asked for a prospectus?
 
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