ETF Month 2019 No. 1: Global X SuperDividend ETF Coverage Improves, But Is A Heavy Bet On Real Estate
ETF Month Begins!
I've recently received some member feedback saying that they weren't only interested in closed-end funds. I do admit that our service has been devoting more attention to CEFs recently, due to the attractive opportunities offered by the December sell-off. However, with CEF valuations back to a 14-month high and in fairly valued (equity CEFs) to even slightly overvalued (fixed income CEFs) territory, it might be prudent to consider whether there are any alternatives to CEFs that could be worth your attention.
Just like last March of last year, I'm designating this month as "ETF Month" where I will focus on profiling different exchange-traded funds. Some of these will be income-focused, whereas others may not be. Additionally, I may profile some higher risk sector-specific or leveraged ETFs that I can find particularly interesting. Hence, none of the ETFs profiled this month should be automatically considered to be "buy" recommendations!
I will also be taking ETF suggestions, so do let me know if you have any ETFs on your horizon.
What are the advantages and disadvantages of ETFs compared to CEFs?
Most ETFs are passively managed. The advantage of this is lower fees compared to CEFs, which are actively managed. The disadvantage is that a passive fund will simply own everything in the index indiscriminately. ETFs will nearly always trade close to their net asset value (NAV). The advantage of this is that one does not have to worry about premiums or... Read more