Author's note: This article was released to members of the Cambridge Income Laboratory one week ago.
The year-end rebalancing of ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFL)/YieldShares High Income ETF (YYY) is upon us! Both funds track the ISE High Income Index [YLDA], which is a basket of 30 high-yielding CEFs that is rebalanced annually. CEFL is 2x leveraged while YYY is unleveraged (excluding the leverage of the underlying CEFs). CEFL and YYY are popular instruments for income investors because they pay high monthly yields. CEFL has a trailing