Cycle Trading

[Duma]

First of all I mistook your CY to mean current year, not current yield.

Now I understand what you are doing, but you are leaving out part of the actual gain of the etf not having to do with dividends. When they pay the interest they don't bring the price of the etf back to what it was 1 month ago, so there is gain or loss there also.

Not taking into account the dividends, the absolute price (without dividends) of the eft has risen from 50.64 from 12/29 to 50.865 yday. That is a .44% rise that needs to be accounted for. The yield from dividends would be on top of this.

It is just like calculating the gain for a stock that pays dividend. The dividend is only part of the gain. The difference is that for stocks, the dividend is a small part of the overall gain whereas for a MM etf the dividend is the biggest part, but not all.

I would think that the yield you calculated for Jul1 dividend would be over stating the actual yield for Jun, because they over paid the dividend and brought the price of the eft down from what it was when the dividend was paid a month earlier. This is a real loss for your account.