Columbia Seligman Premium Technology Growth Fund - Nice Yield But Outperformed By Other Similar Funds

Columbia Seligman Premium Technology Growth Fund (STK) is a fund that offers investors the opportunity to benefit from the long-term growth potential of technology and technology-related stocks. It focuses on capital appreciation and current income. Besides owning equity in technology-based stocks, the fund also writes call options on the Nasdaq 100 Index or its exchange-traded (ETF) fund equivalent.
Investment Thesis
STK provides investors access to a diversified portfolio of technology-based stocks and in addition, it has a quarterly distribution program. In that past three years, the fund performed significantly better than the S&P500. However, in 2018 the fund underperformed the S&P North American Technology Sector Index, returned 2.88% in 2018 whilst STK only returned -14.42%.

Source: Ycharts.com
One big advantage of STK is that besides its quarterly distributions, it also has capital appreciation. This makes it stand out from other closed end-funds which usually are focusing on income first, then on capital preservation and rarely on capital growth. For this makes the fund attractive to own for income seekers that also want to see capital growth.
Overview
The funds objective is to achieve "Growth of capital and current income". As such the fund’s investment program will consist primarily of investing in a portfolio of equity securities of technology and technology-related companies. In addition, the fund also writes call options on the... Read more