Q: Thanks for answering my question regarding Premum/Discount for TCSH canadian money market ETF. In your answer you stated "Indicated Yield" of 2.63%. I looked at the TD web site and could not find this metric. Can you tell me where I can find this important metric as well as help explain what "Indicated Yield" means? TD only provides current yield to maturity on their web site. Many thanks.
5i Research Answer:
For a bond ETF, “indicated yield” is a forward-looking estimate of the ETF’s income yield based on its most recent distribution, annualized, divided by the current market price. It is not a guarantee, but a snapshot of what one would earn in income if that latest distribution level continued for a year. TCSH lowered its payment to 11c, from 13c, for the December 04 payment. Thus, indicated yield is = price divided by (12 x 11 cents) = 2.63%.