If you're looking for yield with price upside, these CEFs might be just the ticket
How a Closed-End Fund Works (Investopedia)
While a closed-end fund has several unique characteristics that distinguish it from an open-end fund, such as a mutual fund or exchange-traded fund (ETF), it also shares several similarities with those two securities.
Both closed-end funds and open-end funds are run by an investment advisor, through a management team that trades the portfolio. Both also charge an annual expense ratio and can make income and capital gain distributions to shareholders.
A closed-end fund is created when an investment company raises money through an IPO and then trades its shares on the public market like a stock.
Closed-end funds often offer higher returns or better income streams than their open-end fund counterparts.
The price of a closed-end fund fluctuates according to supply and demand, as well as the changing values of its portfolio's holdings.
Why are CEFs so attractive right now?
When the stock market takes a beating like we're seeing right now, CEFs tend to decline more than mutual funds or ETFs because most CEFs use leverage to boost returns.
Leverage is great in a rising market but it can bite investors in the behind when things go south. That's exactly what's happening now.
My top 5 CEF picks for 2019
I maintain a watch list of CEFs that have solid records for price performance and payout consistency. There are 40 names on my watch list, and today I'm highlighting 5 of them that I think are exceptionally attractive.
All 5 of these names are trading at discounts to their net asset value and paying at least a 5% yield. There is no guaranty that these CEFs will rise in price from here, but the odds are compelling, in my view.
My full list - 40 CEFs that deserve attention
How to use these lists
I have screened the universe of more than 600 CEFs that are available to investors, and winnowed it down to just 40 names. These 40 finalists can be purchased today, under one condition - that you do your due diligence and/or consult your advisor before pulling the trigger.