Looking For A Core Holding? Consider This Fund Of CEFs With A 7.41% Yield

The PowerShares CEF Income Composite Portfolio (PCEF), rolled out in February 2010, now has a brief record to give investors a better idea of how it performs. This fund of closed-end funds' distribution yield is currently (7.41%). Is that beauty only skin deep? A detailed look at the fund's holdings universe and other relevant issues sheds more light. PCEF normally invests 90% of its total assets in securities included in the S-Network Composite Closed-End Fund Index. The Index serves as a benchmark for closed-end funds listed in the U.S. that seek to produce taxable annual yield. The Index divides these into three sectors: a) Investment Grade Fixed Income Funds; b) High-Yield Fixed Income Funds; c) Option Income Funds. Sector breakdown is currently: Investment Grade Fixed Income 40.47%; High Yield 19.35; and Option Income 38.00%. The Investment-Grade Income portion includes government and corporate bonds,... Read more