RE:FTN vs. FFN?canoehead wrote: There are some posters on these boards who are obviously more knowledgable than me about these split shares. If any have a few minutes could you outline your pros and cons and what you think the risk reward ratio is for different units. TIA, much appreciated?
I do believe for those investors who want a split fund common with decent income FTN is the safest, and porbably not one you have to watch or trade.
FFN on the other hand is a higher yield, at almost exactly 19% , but is trading at a premium, and has only about $1.40 of safety. It is my biggest holding, and i am in at an average price of about $5.50 with trading . If the premium gets too high tho , i will trade out and go into another split close the threshhold with the big 20% + yield and watch and trade.
Everyone has different perspectives.
If you are not an active trader and want to just forget about it and watch the account grow, FTN is the one for you, and still a very decent yield of 13.5 % today....