We compare three approaches to closed-end fund investing: Opportunistic trading, the buy and hold income factory, and a systematic approach of selling closed-end funds after 5% gains. We also explore the pros and cons of closed-end funds relative to open-end mutual funds and ETFs. Show Notes The Closed-End Fund Market, 2023—Investment Company Institute The Income Factory: An Investor’s Guide to Consistent Lifetime Returns by Steven Bavaria—McGraw-Hill Companies Retirement … [Read more...]
490 Plus: Accredited Investors, David’s Private Capital Allocation, Closed-End Funds and BLW
In Plus episode 490, we continue the discussion on accredited investors. David breaks down his private capital allocation and discusses potential substitutes. We answer several questions about closed-end funds. Finally, we analyze the Blackrock Limited Duration Investment Trust (BLW). … [Read more...]
488 Plus: Portfolio Trades, Pershing Square USA Follow Up, and CEF Premiums
In Plus episode 488, David reviews changes in his portfolio, including adding a fixed-income bullet ETF, an equity buffer ETF, and increasing his allocation to CLOs. We discuss why Pershing Square didn't move forward with its closed-end fund IPO. Finally, we revisit why it is advantageous for closed-end funds to sell at a premium even though most do not. … [Read more...]
474 Plus: Who Really Owns Our Stock Shares, a New Private Tech Company CEF, and a Canadian Cash Equivalent
In Plus episode 474, we review what it means that investors who purchase stock through a brokerage firm don't really own the stock but are only entitled to the dividends. We explore a new closed-end fund, DXYZ, that invests in private technology companies like SpaceX. Finally, we review a Canadian cash equivalent ETF, HSAV, that allows investors to avoid paying income tax. … [Read more...]
466 Plus: When ETNs Mature, Long Angle Community, and a Long Duration Credit Muni CEF
In Plus episode 466, we review the exchange offer for the JP Morgan Alerian MLP ETN (AMJ). The original ETN is set to mature in May 2024. David shares his experience and thoughts on the Long Angle community. Finally, we analyze the Nuveen Municipal Credit Income Fund (NZF). … [Read more...]
462 Plus: Immediate Annuities, More on Closed-End Funds, and Currency ETFs
In Plus episode 462, we review why one might want to buy an immediate annuity to help fund retirement expenses. We consider the Cohen & Steers Closed End Opportunity Fund (FOF). Finally, we discuss using an ETF to speculate on currencies. … [Read more...]
459 Plus: TIPS Liquidity, a new MBS ETF, Closed-end Fund ETFs, and MLP Data
In Plus episode 459, we discuss who is on the other side of the TIPS trade. We analyze the Simplify MBS ETF (MTBA) and learn what mortgage-backed TBAs are. We review the performance and risk of ETFs that invest in closed-end funds. Finally, we explain why MLP data is no longer included in the monthly investment conditions and strategy report. … [Read more...]
437 Plus: Federal Home Loan Bank Bonds and an Advantage of Closed-End Fund Premiums
In Plus episode 437, we explore the history of the 90-year-old Federal Home Loan Bank, and why its bonds can be attractive to individual investors. We also explore how closed-end funds that sell at a consistent premium to net asset value can pay a higher dividend, partly funded by issuing new shares. … [Read more...]
417 Plus: Which Assets Now, How Much in Real Estate, Disinflation, Foreign Taxes, and CEFs
In Plus Episode 417, we consider whether there is an optimal price to renter the S&P 500 Index or other asset classes. We discuss what disinflation means. We consider what is a reasonable allocation to public and private real estate. We consider the impact of foreign withholding taxes on dividends. Finally, we look at the current closed-end fund landscape. … [Read more...]
386 Plus: Outperforming the Market, Financial Condition Indices, and Reducing Gold Exposure
In Plus episode 386, we explore what the phrase "outperform the market" means. We review several financial condition indices produced by Federal Reserve branches to understand what they mean and what they are currently showing. Finally, we review David's recent trade to reduce gold and provide an update on his other recent trades, including why DSU fell more than a Fidelity Floating rate mutual fund. … [Read more...]
