10% Sale On Closed-End Dividend Funds

Value investors should check different markets and financial instruments to find the best available deals. Closed-End funds (CEFs) trading at a discount to net asset value (NAV, the net value of fund holdings) are a source of potentially attractive investment ideas. In a sense, they are on sale. How do CEFs work? CEFs are mutual fund companies that buy and sell investments from a fixed pool of capital. Shares in CEFs are sold by current owners, often at prices that are lower than the sum of their holdings. When you buy a CEF, your investment pays expenses to the fund manager. The hope of CEF investors is that the return on their assets will exceed the fund manager’s expenses. Below is a table of CEFs with discounts of more than 10%, dividend yields over 4%, and expense ratios lower than 2%: Closed-End Fund (Ticker) Strategy Discount Expense Ratio Dividend Yield... Read more