EXG: 10% Yielding CEF, Earlier Than Expected Vaccine For COVID-19 Can Support The Rebound

The key bullish catalyst is a potential, earlier-than-expected available vaccine for COVID-19.
The second wave of coronavirus infections remains the key near-term risk.
The fund has underperformed the Vanguard Total World Stock ETF over the last decade.
This time we will present our readers with the Eaton Vance Tax-Managed Global Diversified Equity Income Fund (EXG), which was incorporated in February 2007. It is a closed-ended fund that is primarily focused on global dividend-paying companies while using the strategy of writing index call options to protect shareholders in the case of a bearish market environment. It pays a regular monthly distribution of $0.0616 per share and offers a 10.62% dividend yield as of May 19, 2020. This fund has recently experienced a sharp market price decline of 44% in a month, as a result of the crash of global stock markets between the end of February-March 2020. In terms of the key bullish catalysts, we find the following: (1) an earlier than expected vaccine for COVID-19 available for the global population, and (2) no second wave of coronavirus infections.
About the Fund

(Source: Annual Report)
This fund has similar portfolio contents as our previously analyzed fund from the same issuer - the Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY).
The fund can invest under normal market conditions:
up to 80% in a combination of domestic and global dividend-paying stocks and written covered call options;
at least 40% of its assets in securities from international issuers;
less than 10% of its assets in emerging markets; and
less than 25% in issuers from a single industry.
(Source: Prospectus)
The fund is required to write call options on the S&P 500 index and at least one broad-based foreign stock index. It is also allowed to write on other domestic and foreign stock indexes as well.

(Source: The Options Guide)
In general, this particular strategy of writing index... Read more