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Why I’m NOT Buying DXYZ: Major Red Flags Most Investors May Be Missing
Comparison tool b/w ETFs, MF, CEF That Goes Back *More* Than 10 Years?
Utilizing a self directed brokerage account I need to sell my position and am concerned about how many shares to sell and frequency.
Pimco PTY 3.70% Expense Ratio -- Am I reading this right?
Do you have CEF’s as part of your retirement portfolio?
Why not maximize Roth IRA with closed-end-funds at 7-12% yield with DRIP? (I already max 401k + 457b with SPY/VTI)
Company trading below net asset value (no debt, pure cash)
Company trading below net asset value (no debt, pure cash)
Question. BSTZ CEF Did you receive your June dividend?
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you don't have to be growth or dividends. You can do both in one portfolio. In my taxable account I have FAGIX for growth. For dividneds I have QQQI 13% dividned yield, SPYI 11%, KGLD 11%, EMO 8%, UTF 7%, UTG 6% PFF 6%. This portfolio currently generates 5K a month that covers all of my living expenses. I does generate a bit extra about 1K which I reinvest for more income. These dividend funds pay monthly and produce qualified dividned to minimize my taxes. Since i started investing for dividends just before 2020 I have not seen any dividend cuts or any significant problems. Automatic dividend reinvestment is turned off for all these funds so the cash is in a money maker account and I keep a minimum of 6 months in the money market. FAGIX is the market holding with some individual growth stock picks. Otherwise every thing is in ETF or CEF funds. The growth is mainly long term savings for major emergencies or inflation adjustments. And I have 401K mainly growth and roth IRA which is a mix of growth and dividend. But since the Roth is tax free I have other dividend funds that are not tax efficient. Since dividends are very stable I don't worry about the volatility and risk of my growth funds. If I sell growth it is only in the ammount necessary for the emergency or inflation adjustment For example sell 4% of the growth once every 4 years to insure I never run out of growth.
Any recommendations on CEF's? Not wanting to shortcut the book recommendation - just want to rather be encouraged rather than discouraged when looking at data.
Have you read the book “Retirement Money Secrets”. It’s all about investing for income using CEF’s. If you haven’t read it I highly recommend it. You can find out more about the author at https://steveselengut.com. There is also a link to join his community of like minded income investors.
Same here. Retired using CEF’s for income
Yes using CEF’s. I currently own 100 of them paying me a steady distribution every month. I didn’t quite believe it either until I started following the authors methodology. And the best part is that you no longer care which way the market goes. If it goes up great, time to look at taking profits, if it goes down that’s great too as it’s a buying opportunity. I no longer sweat the day to day or month to month fluctuations in the market. I just keep collecting the income.
> Those CEF’s are averaging 10% monthly income per month. You mean 10% annually, paid monthly, surely....
CEF Connect is a great source of information. I recently read a book by Steve Selengut called “Retirement Money Secrets”. It’s all about investing for income utilizing CEF’s. I now follow his plan of diversifying and profit taking as he outlined in his book. I highly recommend reading it. I liked it so much I went on to join his paid community where he provides you with the actual monthly t list of funds that pass his methodology outlined in the book. If you want to find out more about the book and the author go to https://steveselengut.com. He also includes tax free munis in his lists. I currently have over 100 CEF’s paying me a steady monthly income. It’s a great system for anyone looking for realized cash flow for retirement or cash flow to reinvest and watch how compounding works to keep increasing your monthly income.
Thats an interesting idea, I always forget about CEF's but in this case the leverage they can have on the very safe underlying muni portfolio may make it worth looking into. Any thoughts on the [https://www.cefconnect.com/](https://www.cefconnect.com/) as CEF screener?
I have laddered T-Bills. I may just liquidate everything, put the cash in my brokerage and buy muni CEF’s paying over 5 1/2%.
Capital devoted to selling options varies between 200k to 250k. In addition, 50% of realized income from premiums are not put back into options but used to buy dividend paying CEF’s. Those CEF’s are averaging 10% monthly income per month.
No, the CME is worried bc Hyperliquid is 24/7 and can do 200,000 transactions in less than a second. Someone built a light crude and Brent oil perp for it and it has become very popular. It’s a very token holder friendly business with 99% of fees going into buying back coins “burning them”. It’s written into the protocol and can’t be changed by vote. They also have PURR which trades on NASDAQ and is currently trading at 0.85 to Net Asset Value. Should be at minimum .9 to .95 like a CEF when you add in expenses for running the digital treasury instrument. Most of the coins are staked, earning 2.25% APY & the constant inflow of millions per day of fees has made HYPE one of the best performing coins YTD. Goldman sold all their XRP and SOL and bought a 3% stake in PURR. Real time data: https://defillama.com/protocol/hyperliquid https://hypestrat.xyz Could be huge, could lose its market dominance idk but I bought Purr into the close all the way to $6.19 (around 300 shares total plus covered calls). I own maybe $400 in HYPE directly as well. If I see institutional selling in 13f Q2 filings I might trim but it’s in the Russell 2000 so Vanguard and all the other big ETFs hold it.
My rule of thumb is I never have more than 5% of my working capital (total cost not market value) in any stock, ETF, or CEF. Most of them are 1% or less. But I invest for income not growth. During a major market downturn the growth disappears but the income remains fairly steady. Even if several cut their dividends because I’m so diversified it hardly makes a difference.
No, they primarily lend to MJ companies. If you pull up Chicago Atlantic’s website they discuss their various funds including LIEN, and if you pull up their SEC filings you can go through their loan portfolios. It’s a BDC/CEF however so liquidity is low (which is why there are no options). They trade at a discount to NAV because of the inherent risk baked into the sector (MJ companies do not have access to traditional banking, have to deal with unfair tax treatment, have an overhang that the feds could technically pull the plug on them at any moment, etc.). They also traded down along with the private credit fears even though they do not have the exposure to software companies that is a driver of those fears. If you go through their loan portfolio and the terms they extracted you probably won’t find anything else like it on the market. They also currently have very low debt leverage for a BDC. If there is anything that is a red flag it is that they filed for a large shelf offering several weeks ago. The CEO has already come out and said they are not issuing new shares under NAV, that they are focused on increasing leverage where it makes sense, and that it’s to give the company optionality to be ready to capitalize on rescheduling. Could just be typical Wall Street BS, but haven’t seen anything instance in which the CEO contradicted his statements from my research into it. FWIW, I am holding 5600 shares that I bought when it dipped to $9.04/share. I also made a post on the dividend subreddit to gather feedback, but didn’t see anything that stopped me from pulling the trigger.
Check out some Closed End Funds (CEF's) like BST, UTG. Good dividends and my share value has gone up since purchase. I live off dividends after retiring at 56 using CEF's
Normal for many established dividend companies Note this line assumes all companies re regulated the same. Which is not the case. Some companies are required by lay to pay dividned while most are not. This legal requirement to pay means the dividend is often higher than other companes. For example Business Development companes typically have yield of around 8% with some at 11%. Master limited partnerships tyicpally have yields in the 6 to 8% range. REITs can have yield of5% to about 8%. And then you CEF invesment companies hat invest in equities, bonds, Credit, CLO and investments that are not companies. These often have yield of 4% to 10%. and higher. So over all 0 to 10% yield worthy to invest in but investigate and understand how the company earn m money. For 10 to 20% may have issues investigate before buying. Above 20% most investments have issue. Verify no issues before investing.
BDJ. CEF that pays a fixed dividend of 6.19 cents per share monthly. 8% ish yearly depending on share price.
The easy answer here is probably diversification. First, diversify in asset classes you already have. For example, if you already have stocks then you can add exposure tor different sectors, industries, or countries. Second, diversify in asset classes you don't have yet. For example, if you already have a wide range of global stocks you could also add corporate and sovereign bonds, preferred stocks, or commodities like gold. Finally, you can also diversify in terms of investment *strategy*. Diversifying your investing strategy comes in many different flavors. For example, you could hold cash on the side to buy significant market pullbacks only, or at a certain market valuation level. Or you could use trend following rules with moving averages or new highs/lows over X trading days to adjust your market exposure to hedge out the possibility of being invested during a crash. Or you could buy insurance, like put options, although like any insurance it's easy to overspend since on average it won't pay for itself in the long run. Finding funds for this purpose is often easier than doing it yourself. As an example, consider one of the systematic futures trend following funds run by CTAs. Most of those are pretty uncorrelated to stocks and offer decent returns with moderate fees. There are lots of things like this that offer reasonable returns and some level of reduced correlation to the overall stock market, from systematic stock momentum and value strategies to activist CEF arbitrage. In theory all this diversification protects you from being overexposed in a single asset which crashes. By rebalancing your assets periodically it can sometimes even produce a better overall return than being 100% stocks because you're always selling some hot asset to buy something that's out of favor and reaping the rewards of it returning to favor sometime later. I also have a few tips for you if you decide to pursue this. First, cash is also an asset class. That includes cash savings instruments like money markets and CDs. The upside to cash as a position is it generally holds its value the best when everything else is crashing. The downside is it generally has very bad returns, often negative due to inflation. You could try to hold foreign currencies with higher interest rates but at that point you might be better off finding a fund that trades and invests in currencies. Buying foreign stocks or bonds also naturally gives you foreign currency exposure to some degree. Second, different asset classes have different levels of volatility. On the one hand, bonds being low volatility is what makes them useful when the market is crashing. On the other hand, it's also part of why they have worse average returns than stocks. You'll have to decide whether you'd prefer to weight your assets by equal value (so for example each is $100,000), by expected returns (so for example stocks get more money than bonds get more money than gold or cash), or so that their contribution to your portfolio volatility is equal (so stocks get a smaller position than bonds, etc.). Each has its pros and cons which are too long to explain here but you can look into it using an AI tool or web search. Third, not all asset classes are simple buy and hold. Collectibles (like fine art, nice cars, NFTs, or beanie babies) and commodities (like wheat, live cattle, copper, and oil) are often specialized markets which take a lot of work to understand and rarely produce good returns with a buy and hold strategy. If you aren't confident you know how to trade these assets you're probably better off outsourcing that to a fund manager who does. Some assets aren't even a buy at all: there are many ETFs out there which promise to do something special with options to produce income or reduce volatility or whatever. Most of them are useless wastes of money. Fourth, When you buy an asset be sure you buy a sufficiently representative group of it. If you were alive in the 1860s and bought bonds you did well. If you were alive in the 1860s and bought Confederate government bonds specifically you were wiped out. US treasury bonds are probably an exception. Given the way the world financial system is set up if US treasuries default your portfolio value will be the least of your problems. Fifth, if you do choose to hold more cash and buy market pullbacks I'd recommend looking to deploy about a third of what you have saved on a -10% correction, another third around a -20% correction, and your final third can be divided up below that. Markets often go years without a -20% correction so you don't want to save too much money just for that. But when you do get one it's a coin flip whether it'll stop there or continue to get worse so you don't want to be totally out of cash by the time we hit -20%. Finally, if you decide to implement some kind of market timing strategy yourself (whether it's something as simple as periodically rebalancing different assets or something more complicated like dip buying, trend following, and so on) it's very important to write down the rules you will follow in advance when nothing interesting is happening. When things get interesting you'll be tempted to improvise and that's generally a bad idea. If you think you can value assets effectively yourself that's also an option you can consider. If you're buying great companies at a cheap price with management who will distribute earnings to you in the event of a prolonged bear market it's hard to lose. But being an excellent stock picker is definitely a lot harder than buying some of each major asset class, holding some cash on the side, and engaging in a little market timing in an attempt to reduce portfolio losses without sacrificing too much in the way of profits.
It's a bit more complicated than that. You have to look at the yield relative to the capital risk. And if there is any growth opportunity. Also - you have to compare the yield relative to the risk-free rate. Also - a CEF is a kind of fund. Both GAB and USA are CEFs. You cannot evaluate a CEF's dividend in the same way that you evaluate the dividends derived from different types of funds or companies. If you are interested in CEFs - my strong suggestion is to understand how they work under the covers and how the dividend is derived. Take USA for example - the fund holds a lot of companies that don't actually produce a dividend. It's closed-end and holds a lot of growth tech equities like Nvidia, Microsoft, Alphabet, Amazon. It distributed dividends by selling it's holdings. And because it's closed-end - it's value goes down unless the growth companies it holds appreciate in value. So think about this way - if you don't have a reason to hold a CEF like USA - won't it make more sense to hold the actual underlying names or a fund that indexes to those same names? Plus there is a tax drag if your goal is long term appreciation.
You are kinda comparing apples and oranges. You have to understand the underlying reason for why a dividend is being issued. Both T and KO are companies with a business which generate income and that income is returned to shareholders in the form of a dividend. However - GAB is a CEF - ie. a closed-end fund. It's an income fund which where the investment style is to invest in companies that the fund managers believe are under-valued. But the fund has a 10% distribution policy so the dividends are guranteed. So if the fund's investments are poor - it will get reflected in the NAV. Dividends aren't free money - those distributions will always impact the fund or company distributing the dividend.
If you actually want to own space-x now before the ipo then buy DXYZ. As a bonus this ~ETF (technically CEF) also has a stake in Anthropic.
OP, Might want to think about setting a hard limit on how much tech you are exposed to. Just today I was selling some slow ponies (poorly performing stocks). With the proceeds, am looking at dividend paying CEF's & ETF's that performed well (relatively speaking) during the 2008 GFC and also 2020 Covid fandango. The dividends I am looking at are 6% and more. Already trimmed WMT, CAT, DE, & D (they are overweight winners) as well as GBDC, BRSP, and several other slow ponies. Part of my buying will be looking at existing holdings and bringing them up to a full 3% of the portfolio if they seem worthy. Total tech across all CEF's totals less than 5% (don't hold any individual names in Tech except for HTGC). Survived the stock market & thrived from 1986 forward. Trying to put the lessons learned to work, play some defense, and still win.
Don’t get discouraged by the $10M portfolio number. The majority of my portfolio is not involved in my option trades at all. Many of my holdings like all my high yield REITs, BDC’s and CEF’s either have poor option premiums, low liquidity, or simply don’t fit the way I use CCs and CSPs. The active option sleeve is much smaller. For example, the roughly 20 open option trades I currently have is the largest number I’ve ever had open at the same time, and the capital needed to support those trades is not even $500K. So the way I would think about it is not “I need a $10M portfolio.” It’s more about slowly building an option-capable part of the portfolio where the stocks have decent premiums, good liquidity, and are names you would actually be happy to own or trim anyway.
IF your growth investor Using growth index funds there is one group of energy companes that are not included in your growth index funds. Master Limited Partnershps (MLPs) VTI should have hen but doesn't. Some may be big enough fro S& P500 but still they are not there. Why MLPs generate K1 tax forms which means this complicates the funds taxes and thus increases expenses. But that said MLP also pay a higher dividend than most companes and and some have growth. Soif you OWN VTI or other growth index you might consider adding theseA ETF or CEF that holds these companes. I hav EMO 9% yeild. Note since the fund has to handle and pay any tax related to the K1 tax forms. So you don't have to. There are many funds that invest in MLP. MPLs gernallly own oil and gas pipelines and some oil and gas refinereses.
Yeah there's no way a 50 year old Wall street worker doesn't know what a CEF is. That's like an EPA worker not knowing what DDT is.
VOO is a fund not a single stock. Single stocks have the potential for much higher growth than a fund can deliver. But it is nearly impossible to know which ones will have higher grwoth. You might end up investing in a stock that eventually goes bankrupt. And you have no way of knowing howling you will need to hold the stock for the grwoth to occur. ETF , CEF, and mutual funds like VOO are designed to address these risks of owning single stock risk. but there are other assets you can invest in that are not stocks. yes there are government bonds, but there are also ETFs loan obligations, corperate bonds, dividend, credit, and CLO funds. they generally will not have grwoth. But they often distribute there earning through cash payments directly into you brokerage account (typically quarterly or monthly payments). Most of the time people just call these dividends. While banks typically pay 3% interest you can get dividend yields of 10%. Which means 100K in a bank can generate at 3% interest 3K a year. 100K invested at a dividend yield of 10% will genrate 10K a year or about $900 a month. if you build up a dividend fund to 400K invested you could get 40K a year of income . to do that with government bonds you would need about 1.1 million. So there are benefits of investing in none growth ETFs. yet the total return is generally lower and taxes may be higher than growth funds But they can be used to allow you to retire comfortably at age 40 with a taxable account.
A site like CEF Connect can give a breakdown on how the company pays the dividend each time, e.g., from income, long-term gains, short term gains, or return of capital. If some or all of the dividend comes from income, that's profit sharing.
Many growth investors have large cash buffers to survive 1 or 2 years or more to supply money during market down turns so they can avoid selling shares at a loss. Many dividend investors don't have large cash buffers. Instead they build adeversified portfolio of dividend payers that reliably pay dividneds through stock market crashes. Every year theS&P500 pays about 1.2% dividned yield. Index funds have payed though all market crashes yes the dividend may drop a little bit but not much. In most recessions the dividend drop is about2% while means 98% of the total dividend is still payed out in market crashes. Yes dividned cuts do occur but they are not common.. So some investors may not see one in ther life big enough o effect them. And with dividend ETF today ou can have a fund with 400 stocks paying a 6% yield and you might never notice the one stock int he portfolio that cut its dividned. UTG is a CEF that pays 6.4% in monthly installments. it has never had a divided cut in 20 years and it has gradually increase the dividend over time.
Robinhood Ventures Fund I (RVI) is seeing significant upward movement today primarily due to a "halo effect" from SoftBank's latest earnings and its bullish stance on OpenAI. Here is the breakdown of why RVI is surging: **1. The OpenAI Connection** RVI recently made a high-profile **$75 million investment in OpenAI** (announced April 22, 2026). Today, May 13, SoftBank reported strong profits from its own Vision Fund and specifically highlighted the rising valuation and future potential of its stake in OpenAI. Because RVI is one of the few ways retail investors can get direct, liquid exposure to OpenAI, it is acting as a proxy for the AI giant’s valuation. **2. Market Sentiment & Narrative** * **SoftBank Catalyst:** SoftBank’s commitment to further aggressive AI investing has signaled to the market that late-stage private AI valuations are likely headed higher. * **FOMO and Momentum:** After crossing the **$1 billion market cap** threshold last week (as noted by CEO Vlad Tenev), the fund has gained significant momentum among retail traders who are using it to "bet" on AI companies that haven't hit the public markets yet. **3. Expansion Plans (RVII)** Just two days ago (May 11), Robinhood announced it had confidentially filed for **Robinhood Ventures Fund II (RVII)**. This news has validated the success of the first fund (RVI) in the eyes of investors, suggesting strong demand and a successful proof-of-concept for this new asset class. **4. Portfolio Concentration** Unlike a broad index, RVI is a concentrated "closed-end fund" (CEF). Significant moves in its top holdings—which include **Databricks, Stripe, Revolut, and SpaceX**—can cause the fund’s share price to trade at a premium relative to its Net Asset Value (NAV). Today’s move suggests investors are willing to pay a high premium to hold these private "unicorns" during an AI-driven market cycle.
[BST](https://www.blackrock.com/us/individual/products/270141/blackrock-science-and-technology-trust-fund) (Blackrock Science and Tech CEF) has about a 3% weight of Anthropic Zoom (ZM) also has some exposure to Anthropic
The audacity of you assuming that I don’t understand what I’m buying, given you know nothing about me or my overall investment strategy(s)! These CC ETF’s are just 8 of my portfolios holdings of some 37 that includes BDC’c, CEF’s, MLP’s, REIT’s and dividend growth stock. I, like most here, have made my share of investment mistakes, but I am a well-seasoned investor at this point. And my investment strategy fits MY needs, not yours. Thank you for the comment.
The fact you made this post is a good indication you need to reevaluate your investment stratagy. Young investors typically have much more risk tolerance than old investors. yes bear markets typically last 18 months. but there have been 3 occasions i the last 100 year were the bear market lasted 10 to 15 years. Now most people plan to sell stock according to the 4% rule in retirements. But this will only generate inocme for about 30 years with sequence of return risk and and inflation risks. And these risks look very high right now. But there is another way to get income in retirment that most overlook and it significantly reduces the sequence of return risk and inflation risk and the risk of running out of money before you die. it is called divinedinvesting. Divdneds are essentially profit sharing cash payment you they occur monthly or quarterly automatically and you are not selling shares so sequence of return risk is greatly reduced. And if you select dividend ETF or CEF that pay a yeild of 6 % or more inflation risk is greatly reduced. And since you are not selling share you significantly reduce the risk of ever running out of money. You should read the book the income factory and look at armchair investor on YouTube. Both are about investing for dividends. Armchair incomefocusese on review of fund that pay dividends. Surprisingly a lot with yields 6%. And both offer additional tips for dividend investors. a well deversified portfolio will provide income in a recession with minimal risk of divdend cut and and probably will provide income right up to your death. At that point you children will inherit the money. With 1 million in good dividend portfolio you could easily get 60 to 100K of income . With the 4% rule you get about 40K from 1 million and the income will last about 30years. which is fine if you retire at age 60 because you will likely die before you run out of money.
I am starting to get a kick of how much this fund is annoying and confusing people, lol Come September I won’t be selling any of my 3200 shares that were gotten for a bit under $50k. I bought the max $10k preIPO offering and did a limit sell for those 500 shares at $500, so I’m up $190k minus my initial investment and $10k ipo buy. At 45 I have zero interest in even thinking about selling in September. This represented less than 5% my portfolio when it was in Fundrise so this has been a massive win for me. I love how many people are crying about how overvalued it is bc they look at the NAV, like that has anything to do with a CEF with privately held companies that everyone wants a piece of. The fund has shown resilience in falling below $110 even with close to $100k extra shares being released every week and institutional buyers snagging up more and more shares every time it dips below $110.. The smart people are buying and holding, especially if they got it in the low $100’s.
Appreciate the post OP. Global instability is a headwind and I think valuations were inflated as well. Like to hear more of your thoughts. Thanks I went into cash / took profit the moment we entered the Middle East conflict (except for a heavy position in OXY., 42$ average and sold out of that recently). Sold a highly speculative minor loser as well. I expect a few quarters of earnings misses due to margin constriction (increase in oil prices = higher cost of moving / shipping / trucking = higher cost of everything). Added 25% of capital and still adding to a position in BDJ, a CEF (closed end fund) that pays a 0.0619 / share every month. +8% yearly but compounds monthly. Have it set on drip (divy reinvest). Share price is less volatile, but a decrease in share price is positive. Dividend buys more shares every month as share price decreases. Divy stays 0.0619 / share. Holding cash to buy my favorite stocks at a discount. I also expect a crypto run back to ATH in the next 2 years. Aware of the 4 year cycle, so adding but cautiously. Appreciate the thoughts, thanks for the perspective.
Straight from the mouth of Cursor. Do with it what you will, IMO if you missed the tech giants in the late 90s/2000s buy AI with what you can afford and forget you did it. Yes, I watched my $5400 turn into \~$270k, calmly, with a bottle of Blanton's. I'm old enough to remember saying to a friend "Why would I buy books on the computer and wait for them to be mailed to me when I can just go to Barnes & Noble and buy them" LOL... and sad at the same time :) The holdings are genuinely elite: * Anthropic (21%), Databricks (18%), OpenAI (10%), Anduril (7%), SpaceX (5%), Ramp (5%), Epic Games (4%) * These are arguably the most valuable private tech companies in the world. The thesis is real. But the math is broken at current prices: * NAV (actual asset value per share): \~$19 * Recent trading range: \~155−155−213 (after crashing from $575 peak on March 25) * That's an \~800-900% premium to NAV * To justify 173/share,thefund′sassetswouldneedtobeworth 173/*share*,*thefund*′*sassetswouldneedtobeworth* 5.9 billion, not the actual \~$650 million * Citron Research (well-known short seller) has already taken a bearish position The September lockup is a ticking time bomb: * \~100,000 pre-listing investors with cost basis around $9-19 are LOCKED until \~September 2026 * When those shares unlock, there will be enormous selling pressure * Even if every holding appreciates 50% by then, NAV goes to maybe \~$28 -- still nowhere near current prices # VCX -- Updated Breakdown & Recommendation Your Position: ||| |:-|:-| |Shares|514.097| |Cost basis|\~5,400( 5,400( 10.50 avg)| |Current price (3/31)|$130.95| |Current value|$67,324| |Paper gain|\~$61,924 (+1,147%)| |Tax treatment|Long-term capital gains (main lot held since Oct 2024)| |Lockup expires|September 14, 2026| The Premium Problem: ||| |:-|:-| |Actual NAV per share|\~$18.97| |Current stock price|$130.95| |Premium to NAV|\~590%| |Price at which you break even|$10.50| |Price at which you still 5x|\~$52| Even after crashing from 575to575*to*131, the stock is still trading at nearly 7x its actual underlying value. What Could Push NAV Higher Before September: * Anthropic (21% of fund): Valued at 380BasofFeb2026,upfrom380*BasofFeb*2026,*upfrom*183B in Sept 2025. Rapidly growing revenue ($14B run rate). If they IPO or raise again, NAV gets a direct boost. * SpaceX (5% of fund): IPO expected \~June 2026 at $1.75 trillion valuation. This is a massive catalyst and could occur BEFORE your lockup expires. A SpaceX IPO would likely boost VCX sentiment and NAV simultaneously. * Databricks (18% of fund): IPO expected H2 2026, valued at $134B. Timing could overlap with your lockup expiration. These catalysts could realistically push NAV from 19to19*to*25-35+ by September, especially the SpaceX IPO. What Happens September 14: \~100,000 investors with cost basis around $10-19 become free to sell. This creates massive supply pressure. The stock doesn't go to zero -- the holdings are real and valuable -- but the insane premium compresses hard. Likely price scenarios on/after unlock: |Scenario|Premium|Price/Share|Your Value|Your Gain| |:-|:-|:-|:-|:-| |Hype holds (unlikely)|500%+|$130+|$67K+|\+1,147%| |SpaceX IPO boost + moderate premium|200-300%|$60-80|$31-41K|\+470-660%| |Premium compresses to typical CEF|50-100%|$30-40|$15-21K|\+185-280%| |Reverts near NAV (worst case)|0-25%|$19-25|$10-13K|\+80-140%| My Recommendation: Sell most of it in the first week after September 14. Here's the specific plan: 1. Late August: Transfer your shares from Computershare to a real brokerage (Fidelity, Schwab). Computershare is slow for sell execution. You want limit order capability on day one. 2. September 15 (first trading day): Sell 75-80% of your shares (\~385-410 shares) via limit order. Don't market sell -- set a price you're happy with. Even at 40−50/sharethat′s40−50/*sharethat*′*s*15-20K locked in profit on those shares alone. 3. Keep 100-125 shares as a long-term position. The underlying companies are genuinely world-class. If you strip away the premium insanity, owning Anthropic + SpaceX + OpenAI + Databricks at a $10.50 cost basis is a fantastic long-term hold. Once the premium normalizes and the stock stabilizes, it becomes a legitimate venture capital fund. 4. Watch the SpaceX IPO timing closely. If it happens in June-August, VCX could spike again before your lockup expires. That changes nothing about the plan -- still sell the bulk -- but it might mean a higher exit price. Bottom line: You turned 5,400intoatminimumaverylikely5,400*intoatminimumaverylikely*15-40K+ after taxes, with the potential for more. Don't get greedy chasing the premium. Secure the life-changing gain on the bulk, keep a small position for the long-term thesis, and let September take care of itself.
I think the overall market has another 5-10% correction to price in the macro environment (extended war and increase in fuel costs impacting margins) and deflate inflated valuations. If you are selling now, I think you may be late and may be selling closer to the bottom than the top. I took profit and actualized 1 small loser about a week after the US involvement in the war. Global instability is a headwind. Held onto a heavy OXY position bought between 38-44 a share for a bit longer… 40$ a barrel is below Saudi production cost… 60 is break even. Hate that war made that trade play out… Strategic positioning… Increased and adding to a position in a CEF (closed end fund- BDJ) that pays a 0.0619 dividend per share per month set on drip (dividend reinvest). As share price declines, the dividend buys more shares. Dividend is fixed, so share price decline is a positive (cheaper share price = more shares every month). Have 20% cash position to buy my favorite blue chips at a discount. While the war is the main catalyst, certain areas of the market were overbought / inflated and due for a correction. Looking to dca into NVDA and Amazon. Just my opinion… If you sell now, I think you are reacting late. When retail get to the point of selling to preserve capital (fear) it is a signal we are closer to the bottom than the top. If you don’t need the money, just sit on it. Certain asset classes will see the impact of increased energy prices / shipping costs in the next two quarters. Consumer non discretionary will be impacted by decreased margins due to increased cost of transport (increased oil prices) and targets will miss. All companies will see margin compression. Earnings will miss or hit low end of targets. I think we are entering an inflationary environment. 6-9 months unless the Middle East conflict ends tomorrow. Then only 2 quarters / 4-6 months. I also think capital will move into crypto and crypto adjacent companies. NFA and I don’t know shiz. Just sharing a perspective i haven’t seen anyone posting about. Good luck 🍀 All that said, the entire market could crash tomorrow and never recover…. But that bet has never worked out for anyone ever in the long term.
As an investor of VCX before its IPO & sitting on restricted shares, the fund was growthing parallel to its NAV. Unfortunately, fortunately for some, psychology and irrational emotional investors took over after its IPO. You're really dealing with emotional investors controlling the price. Sadly, majority of these investors lack any true investment knowledge and the basic pillars of investing, causing this CEF to behave outside the norms of a how close end fund normal behaves after it's IPO.
I’m not leaving this reply posted for very long. I will delete it. Reply so I know you saw it. The time to exit and get into cash was 1-2 weeks ago unless you own oil stocks. This is a longer answer and some background to my strategy. I have a pension and contribute an additional 24% of my income into an investment that pays 7% fixed return (not affected by the stock market). That is separate from my self managed trading account. That is what I share below. What you do in the (this unstable) market depends on so many factors. Do you need the money? Do you have retirement accounts or is this money that money? What is your investment time frame? When do you want to take profit? Short summary- I invested all spare cash every few weeks for over a year in one company and 5x’d (about 6 figures profit). Original investment plus long term capital gains tax removed from the market. The remaining capital is what I am talking about in this reply. It’s not money I need or expect to get back…. …didn’t like the unpredictability of the global environment and adjusted my self managed account a couple weeks ago. I went to 20% cash and added to a couple positions. sold out of OXY (heavy +20k $ position with 44$ average, last purchase was in June) and sold out of a slightly less heavy position in Target (90 average, sold at 118 a share). Exited a small loser as well. What I see as smart… Moved 10% of that capital / added to a CEF (closed end.fund) that pays .0619 / share dividend monthly (BDJ). I have it set on drip / reinvest dividend. Decrease in share price is a positive. Dividend pays same amount, buys more shares when price declines. The position is about equal to my original investment and now pays about 150$ a month. Anticipating capital to shift into crypto and crypto adjacent assets. Added and still Adding to a highly speculative company. 2 sides of the company - 1. mines bitcoin, 2. data center / ai. Extremely high risk and is technically a penny stock (current share price is 1.84). The position is down, but I don’t need to sell and have unshakable conviction (having done extensive research). If I’m wrong and I lose the entire investment, it’s not a biking deal. Beyond that… I am watching for discounts on my favorite blue chip stocks to buy with capital I pulled out two weeks ago. As an example, I like Amazon. Bought one share a few days ago at 210. Have owned 80 shares at 216$ share average and sold at 230$ a while back (months ago). I am watching for p/e to drop to 20 or below before buying in. I would like to own NVDA as well. I will delete this in a few hours, if you see it, reply. Happy to talk about the market and how to grow wealth.
It was on the Fundrise platform before it converted to a CEF. People with an account could buy in early.
I’ve been living off dividends since retiring 2 years ago. Primarily I use CEF’s. BST and UTG are 2 of my favorites. I do have a small amount in a CC etf for a small income booster.
It could impact retail for sure, and I'd assume by extension institutional. A good example would be investors in CEF's (closed end funds). A lot of those credit sector products own pieces of this stuff.
The first think you shoulddo is max out your 401K. to get teh tax protection from your investments. As to savings anything above 6 month ofyour living expenses should be invested But i would not put the money in grwoth index funds. I would invest it in dividend ETF. A dividned ETF invests your money and it sends cash profit charing payments to your brokerage account. Much like a bond fund pays interest into your brokerage. A fund like SPYI has a 11% dividend. meaning if you have 100K invested in SPYI it will pay you $11,000 per year. you can use this cash to keep your saving account full and then Use the money to pay bills or reinvest it. Eventually ou could build up multiple Deviend ETFs and get enough passive income to cover your bills or pay for vacations or health insurance. you might want to look at Armchair income on you tube. He is retired and investing his money in dividned ETFs and CEF fund. He does detailed reviews of the funds he is i invested in.
A lot of metal ETFs don't have a redemption option. So the metal may just as well not be there. And in some cases, it is in fact not there, because they have purchased futures and swaps to synthetically replicate the price of metal. So you're not really investing in metal, not even by proxy, but in paper. The difference is that the paper in the case of futures is tied to COMEX rules, which have force majeure or act of God exceptions and cash settlement options for delivery. So the fund risks not getting their metal when it matters most, eg during a bull run and exceptional circumstances. Sprott offers CEF's with a redemption option. These are trusts which are fully backed by metal but they can often trade below NAV. Additionally some gold ETFs do give the option for delivery but not GLD to my knowledge. We also know from Wikileaks cables that the metal futures market was designed to depress metal prices, so you're really just hurting yourself by partaking in such ETF's that do synthetic replication.
As others have said it's not easy to buy South Korea names in the US. Some of the ETFs are highly concentrated in Samsung/SK Hynix, but it's not easy to buy individually - there's no US ADR/foreign ordinary (that actually trades) for either. KF in the US is a Korea focused CEF that still surprisingly is at a pretty decent discount to NAV.
for starters Exchange traded fund come in my different varieties. you are currently investing in grwoth index funds. There are also many ETFs that invest in government bonds, corperate bonds. loan obligastions, and funds that specifically invest for dividends. And all of these make cash dividend payments to you on a quarterly or monthly schedule. While growth index funds produce a lotto growth they produce a tiny dividendOf 1%. ARDC, PBDC, EMO, or AC RE are all funds that pay a dividend of 9% or more. Much higher than the interest of high yield savings account. With your current investing stratagy what is the one thing that limits your ability to grow the protfolio quickly? Money! after all our bills and living expense most have very little left to invest. If you put dividend funds in your account you can use the dividend to buy more growth than you can currently can. Also in a taxable account you can use the dividend income to cover regular monthly bills. I retired early at 55 with 5k a month of income from my ETF and CEF funds. I was late to realize what dividends could do. If I had learned this 10 years earlier I could have retired much earlier. Now there is down side. You ow taxes on the dividned received. But it is almost always less than 34% of the income, and is for many people taxed at 24% or less. Do you know of anyone that has turned down pay raise due to the additional tax?
Mutual funds are not traded on the open market. So if you invest in a mutual fund all your money must be sent to the company that runs the fund. So often they only sell full shares. ETF CEF and stocks are traded on stock excanges that have been dealing in fractional shares for a very long time. ETF are the modern equivalent to mutual funds and today may mutual funds are being replaced by ETFs. Preserving share count can bean many things but when you are selling shares for income. If you run out of shares to sell you are out of money. And no retiree want to run out of money.
That's a good response. I wonder if it's only the Stripes and Databricks, or if those are used to grab the headlines and drive up demand at launch. If they are also looking at the next Stripes and Databricks then it could be interesting. Again this seems highly dependent on management's choices. At least with a CEF the market price doesn't matter as much, if it's making money they will pay it out. A little less dependent on investor sentiment. Curious how hard they will leverage through debt and preferred shares. I have some shares of TRIN which is a technology lender but in some of their deals they get equity kickers too in addition to interest. They have had a very consistent return and some big wins like ASTS and others they lent money to. They do both private and public companies. I'm curious at least since this is playing in a similar space. I don't feel the need to jump in at IPO though.
>Do you have any bond exposure? The fixed income is split is between three silos. One is a bond ladder that runs through 2034, using a mix of defined maturity corporate bond ETFs, nominal Treasuries and, towards the end, TIPS. This will cover our withdraws during that period. Our planning includes a bond tent, and this ladder winding down will be the machinery to make that happen. Second is a sleeve given to Schwab/Wasmer Schroeder to manage. That was fairly recent, but so far they are doing OK with it. Third is what I call "greed corner" (my wife prefers "cash generators"). A modest allocation to preferred stocks and Closed End Funds (CEF). Small enough that if it blows up our world does not end, but large enough to generate income that takes some pressure off the rest of the portfolio. >...the guys I used to seek guidance from have mostly aged out. They’re still rich, have just been watching them make late age mistakes and think they should hang it up. We talk about investing risks, but cognitive decline gets ignored. And it is indeed the elephant in the room. I plan to give it over to professional management by age 75. It is not about dementia, is just losing the edge as we age, and financial management seems to be one of the first things to fade. >Guys get so focused on never paying taxes.... It is a mistake to look at a portfolio's value and not mentally subtract the taxes, but it seems to be a mistake that most people make. Then they become irrational/angry when having to deal with them. I have spent time in countries with low and even no taxes -- and with just a few exceptions they are miserable places to live. So, I pay my taxes and I don't bitch about it.
So… I need some advice I bought CEF (gold & silver trust) last Thursday near the peak and I’m now down about $9,000. Looking at past silver cycles, there are times it took close to 10 years to break even after major highs, which is honestly stressing me out. I know: • Precious metals are volatile • A lot of people are in the same boat I’m torn between two options: 1. Do nothing — accept the drop, hold long-term, and stop watching (but I really don’t want to wait 10 years 😭) 2. Sell now — take the ~$9k loss and move the money elsewhere , just looking for level-headed advice from anyone who’s held metals or CEF through downturns.
There are two ETFs that have done this with lackluster results: IPO and FPX. There usually is no special buy-in for funds, CEF or otherwise before an offering goes public - they enter the scrum along with the plebes.
Nice discounts to NAV on CEF and PSLV
Yeah, I like CEF from Sprott which is 60/40 gold to silver if you just want broad exposure vs 1 or the other.
Can you educate me on ROC with CEF's, and taxes?
What type of account do you hold your CEF's in? For CEF's & REITS is there any scenario where you shouldn't hold them in a tax advantage account?
Canadian here! I am in CEF, ZGLD, & PSLV.
PSA: You can get SpaceX exposure before the IPO. Don’t have to wait for the IPO. You can already get indirect, pre-IPO exposure through publicly traded stocks/funds that have already entered into ownership stakes within SpaceX. • $DXYZ (Destiny Tech100 – closed-end fund) Holds private tech unicorns. SpaceX has historically been one of its largest positions (often cited in the 20%+ range, depending on reporting). Trades at a premium/discount to NAV, so it’s volatile — but very real exposure. • $XOVR (ERShares Private-Public Crossover ETF) One of the cleanest ways to get SpaceX exposure in an ETF. Roughly ~9–11% of the fund has been allocated to SpaceX private shares via SPVs. Daily liquidity, no CEF premium risk. • $SATS (EchoStar) EchoStar entered a spectrum-for-equity deal with SpaceX that results in EchoStar owning billions of dollars worth of SpaceX stock. This makes SATS a legit public-company proxy with SpaceX equity on its balance sheet. • $GOOGL (Alphabet) Google invested in SpaceX years ago and still owns a small but real stake (~8% at the time of investment). It’s not a SpaceX play, but SpaceX upside is embedded.
Bought CEF at 56.70 ( after it ran up from 49) then after being down a few hundred it finally went back to break even. Sold, its currently at i believe $71. All this happened under 2 months. Shout out gold/silver.
Investing in individual stocks is the riskiest way to Invest. At any time a company may suddenly go bankrupt and you loose your entire investment in that company.The safer way to invest is to use ETF and CEF fund. With these funds your money is invested in a large number of stocks. So if one fails it has a minor impact on you. That is true for growth and dividend investors. Buying on the dip is great when you have money and the market dips. But let's face thee facts,When the market dips most don't have cash available to invest. And you may have to wait years for a dip to occur. And often while you are waiting for a dip the market gradually goes up. So it may be better to buy without a dip than waiting for years for a dip. So it is often better to countinously buy a little bit each month over time too. So don't wait for a dip just buy.
Oh, if we are limiting discussion to SCHD, brute force selling VOO shares will win every time, there's no question here. SCHD is not a good investment imo. I went single company as an example of quality dividend stock. In income community both MAIN and ARCC are as well established and known as VOO or VXUS in index investing. My point was that it is not hard to create an income portfolio using BDCs, CEFs, and/or MLPs that will provide sufficient income. If you are interested, I can replace the ticker with an income CEF that will produce similar results.
Although I would add - if I've already sold a CEF I like at a 52 week high, I will start buying back at 15% below what I sold it at instead of waiting for a 52 week low. I both buy and sell in steps ever since commissions went away. This strategy requires lots of limit buys and limit sells to be in place but you never know what might happen - a ridiculous example is NXDT on Wed Jan7, a limit Sell hit at $4.33 then later in the same day limit Buys hit at $3.53, $3.47 and $3.46 - now most people won't touch NXDT because of it's high Beta and horrible track record, but right now it's at $3.78 and distributes at 17% - but that 17% is not all cash, most of it is returned in new shares - last time the new shares were distributed at a value of $3.94 - so if the Market Price goes above $3.94 you can sell the new shares and receive more than you would have in cash. For high beta it's best to sell when the opportunity arises as NXDT will probably go back down below $3. Other CEF's like CET or STEW are so incredibly dependable that you can go for years without a buy because the Market Price never dips, but if you bought it 10 years ago when it was paying out at 8%, you're still getting 8% on your investment and can cash out whenever you need the cash.
Imo don't sell and have the willpower to hold. With new investment money. Buy something else. Maybe like CEF ETF (Gold & Silver) or BTC related to diversify your portfolio.
CEF stock is both combined
At 75/78, adequate Income, we don't need to invest. Moving some HYSA cash to MYGA for yield. I figure why take Market risk if I can get +5% near risk free savings. I have some $ in CEF but yields will reggae rapidly.
maybe a combination of CEF and SPP
Because I do not like all the dross that is in an index fund. Pretty much also true for CEF's, BDC's, and REIT's. And I think I can do just as well if not better on my own.
It’s more of how much are your expenses. House is paid off, car bought with cash. My monthly nut is only 2k. Now just waiting for access to IRA’s with no penalty withdrawals. Mostly invested in CEF’s like BST, UTG, BIT, JQC, GOF and a little bit of ULTY.
Physical is better, but it's a PITA if you're trapped in a 401k/IRA. For paper silver, check out Sprott - they have audited, physical bullion and vault in Canada. PSLV or CEF if you want a mix of gold and silver with a lower expense ration.
Additionally having MLPs in a Roth can force you to owe taxes on the income. on solution is to use a ETF or CEF that invests in MLPs. These funds convert the K1 to 1099 forms which are normal for most ETFs. I am using EMO in my roth.
Nice I didn’t know about CEF, thanks!
CEF is another solid investment from SPROTT if you believe in both gold and silver but want to hold both in a 2:1 ratio in one fund. Can also be cashed in like PHYS and PSLV. The writing is on the wall and I’ve been riding this train up the last year+ as the fed rack up an insurmountable debt load.
I've been retired for over 20 years and have using CEF's to supplement our pensions for years. By buying at 52 week lows and selling at 52 week highs I've been able to generate a portfolio that distributes over 10% per year while also increasing the overall value of the portfolio. You need to be patient but pounce when the time is right. It also requires holding cash in your account so you can set lots of limit buys. I generally only buy CEF's that are trading at 15% discount or more and make distributions at a least 8%. Sometimes you have to hold the shares for years before selling, but if they're generating >8% that's OK. You must also pay attention to the YTD NAV to make sure the CEF will be able to cover the distribution. Right now approaching year end is important. Some CEF's only pay a year end distribution - which can be huge if the NAV has gone up a lot creating either buying or selling opportunities considering when the distribution announcement is made and the date of the ex-div. Other CEF's that have not covered their monthly or quarterly distributions this year may be decreasing their distribution after the first of the year which might mean sell now and rebuy later. An announced drop in distribution may initiate panic selling. Good luck, there may be buying opportunities soon. btw, I tend to use [cefa.com](http://cefa.com) rather than [cefconnect.com](http://cefconnect.com)
Stock is portion of a company you buy you effectively become part owner of the company. The share price you paided for the stock moves up and down with he performance of the company. Profitable companes often pay out a portion of their profits as a dividend that pays you monthly or quarterly. ETF is basically a collection of stocks wrapped up in stock that is bought and sold like regular stock. Some ETF only invest in growth company stock that doesn't pay dividend or a very small one. Others invest only in stocks that pay a dividned. And some of dividend ETF don't invest in companes at all, they invest tin bonds (government and corperate), loan obligations (there are several types) And ETF are not the only investment fund type. There are also CEF and mutual funds.
CEF and SGOL are gold. GLD is more paper gold. I like GDXY for gold exposure plus yield. The gold royalty companies are great FNV WPM etc.
I use 3 and think it ends up being pretty close to the same, unless you have over 100m in the accounts. Where a fee might be .05 less on a CEF or maybe a mutual fund. You may also get options for different funds that aren't available for ppl from another brokerage. So basically pick your favorite interface and tools unless you have way to much money to even care. As long as it's one of the big 3 or 4.
Vol like equities returns like bonds - not something to be too crazy about in a core mix https://totalrealreturns.com/s/VFINX,VBMFX,USDOLLAR,CEF — unless you’re macro trading. There’s some fed papers floating around showing it’s not great unless you have 100 year horizons and others that break down recent events like why it didn’t buffer in 2020 and why it held up in a more recent downturn. But yeah investment wise for a mix - does it hold value ? Does it have expected returns? Ok. Momentum trading strategies and whatnot can capture this upside somewhat but that’s a tax heavy and tricky space even in public funds. I think the managed futures strats are still underperforming due to chaos (although not sure about carry which is frequently used as a low correlation hedge)
Same here, I have a little ETF called CEF that combines gold and silver and did some DCA action with it today. This dip in metals is going to turn out like the aftermath of liberation day was for stocks, a few get spooked then come back at it and run it up to new highs with a vengeance.
This site lists their "sell to us price": [https://www.moneymetals.com/pre-1965-90-silver-quarters/1394](https://www.moneymetals.com/pre-1965-90-silver-quarters/1394) Currently, they are buy 90% silver coins at $48.15 per ounce ($34.43 per $1 face value; divide the 34.43 by 0.715 (number of ounces in $1 of 90% coins) to get the price paid per troy ounce. Spot is at $52.16 (all numbers as I type) so they are 93% of spot. (I'm assuming you bout a $100 face value bag of 90% silver coins.) Physical is illiquid in that it is hard to sell, but it can still be sold but often with quite a bit more work. ETFs are most liquid. CEF is two thirds gold, one thid silver. You can also buy mining stock ETFs like RING.
FWIW, I'm retired. So half my money is in CDs aka fixed income. Then 25% money market. But I read here about the YouTube channel Armchair Income. Long story short, he invests in Closed End Funds ,(CEF) and BDC paying at least 8% dividend yield. So I have 25% in CEFs and BDCs. He shares his portfolio . I just pick the ones I like to invest. i will get $20k this year just from that.
I have been adding to THQ. A health care CEF selling at a discount with a 12% interest rate and monthly payouts. There is some return of capital in their distributions, but considering how poorly the sector has done in past year there should be more ST and LT gains in the future. Also adding opportunistically to BMY and MRK positions to include short puts and calls. Selling calls on PFE to unwind the big bag I have been holding since COVID.
Wow yesterday after hours was a perfect time to put my savings into CEF
Most of the CEF's universe is fixed income orientated and they benefit from \- Diversification against equities AND high yield at the same time \- Leverage and ability to tap into low interest rates and use that money to invest in higher yielding securities \- Ability to invest in more esoteric assets (aircraft financing, private debt, etc) Cons (as many have pointed out) \- Hard to find free sources that have good data on them \- Fees (as they are actively managed) \- Many good CEFs trade with a premium to discount \- Leverage \- Some Cefs can have ROC embedded in the distribution yield
Daily NAV is public for ETFs, and intraday indicative value as well, but it's essentially the same as their market price because they are open end funds. Side note, many CEFs publish daily NAV, but some publish less frequently. Sites like CEF connect don't highlight that lag; you need to take a look at the NAV history.
i maybe totally wrong here, based on my limited research, it's possible to gauge CEF's NAV (Net Asset Value), you want to get them while the price is trading with a **DISCOUNT** to the NAV. i dunno/not sure about NAV is offered for ETFs. And 1 more friendly suggestion, don't buy CEF only if yield is high, it's high for reasons.
I am not a fan, from my understanding it may allow the manager to raise cash and keep an investment in a company for a long period , meaning they want to raise cash and buy 10% of company ABC , enough to influence the BOD or even maybe get a BOD seat Its easier to do with a CEF as people cannot with draw, they can simply sell their shares . However they mostly seem to attract people chasing dividends , not saying all are bad but I would really need to have a compelling case to invest in one
I'm not sure you can generically assess the relative risk of a CEF vs. an ETF, as the holdings and strategy of every particular equity are always unique. One distinction of a CEF is the concept that its shares are traded according to market demand, which may be at either a discount or a premium to the internal, calculated value (NAV) of the CEF's assets. This is unlike a fund whose constituent components directly influence its share price. Other than this, CEFs span all industry sectors and may use different degrees of leverage to produce their distributions. They are fundamentally income oriented, even though they often show considerable long term capital appreciation as well. As such they naturally appeal to income investors rather than Boglehead types.
You can get equity like returns in credit (using structural leverage at the fund level) in BDC's and CEF's. Here are some websites that have that data to my awareness 1. Morningstar 2. [Latticetech.co](http://Latticetech.co) 3. [cefdata.com](http://cefdata.com)
I have a bunch of this too at a cost basis of around $82. I've been buying on the way down for the last year. Im thinking the payoff is four to seven years out. It isn't for the weak of heart, big declines and big increases. Ive also started buying SQM with the dividends Im getting from an energy CEF.
Appreciate the tip — UTG does look solid for income, though as a CEF it’s a bit different from ETFs like VOO/SCHD (leverage + premium/discount to NAV). I’d see it more as an income satellite, while keeping VOO as the core.
I hear you loud and clear. I hope the OP sees this. Here's a VIABLE alternative and if u do this u will make money. Take what you have and INVEST in CEF's. (closed end funds) There's 400- 500 of them out there. They all pay really good dividends. Acuire the book "Retirement Money Secrets" by Steve Selengut. It changed my life.
Buy BST for exposure to Anduril. Had a FA recommend to me almost a decade ago. Great CEF, with investments in private companies. A little pricey expense ratio though but worth it to me for steady payout, growth and exposure.
Would be nice, although coinbase was the last one, they may want to do something non crypto. Plus CEF and investment companies are excluded, one could make the argument that strategy is more like a CEF. Then again, BRK is on the SP500 and operates the same way.
RSG, ABBV, WMT Fund-wise BRW (Saba Capital Income & Opportunities Fund) is an interesting CEF that has done pretty well since Saba Capital took it over and changed the fund entirely in 2021. It lost 4% in 2022 when the market was tanking and lost comparatively less than the market when the market was tanking in 2025, yet has also done pretty well when the market has.
Sold gold etf too early this year. Nice profit but could have been much bigger. (Off set by knowing I sold pharma CEF before medical stocks tanked this year so not all sell decisions are bad)
If I could write to Roaring Kitty today, here is what I'd say. I've got a thesis for you that is ripe for the crowd-sourced creative disruption that was made famous with the GameStop short squeeze.There's a very small corner in the market that is unappreciated, overlooked and largely unknown. That is the \~500 traded issues called Closed End Funds. Unlke indiviudal stock issues, ETF's or mutual funds with huge volumes of share counts which in the case of Open End Mutual funds and ETFs can expand share count dynamically and daily, the total share count of every CEF is capped and fixed. CEFs were designed this way when introduced almost 100 years ago. Furthermore they typically sport very high yields, which are mostly paid monthly and historically trade at a discount to Net Asset Value. Think of buying $100 of assets for $80. 4 factors come into play in my thesis to make these CEFs a perfect storm to exploit for profit. (1) Knowing that the FED is predicted to lower interest rates between 1 and 3 times yet this year, we know for yield instruments, as yield goes down, NAV goes up. If the FED acts, this is built-in upside. (2) Who are the fastest growing group of investors? I'd posit that group is retirees stating to collect social security and rolling over there company 401K plans into their IRAs. For monthly cash hungry retirees, CEFs are TINA. (3) The Bull market is booming and P/E multiples are reaching nosebleed levels. All Bulls ccorrect or crash at some time. For long-time readers of Barrons know, when the well heeled investors cash-out they park their profits in CEFs. It's smart to grab a discounted asset, paying a high cash yield and wait for the Bear to finish his work. (4) Given the fixed share caps of CEFs, they are very hard to borrow. While there is some short selling, there isn't much volume so shorts get squeezed very quickly. This thesis posits that unlike GameStop's primary short squeeze focus, the CEF case is more of a corner-the-market play. If the 4 factors above develop , who wouldn't want to be standing tall on that corner before the crowd rushes over? If interested, read more about Closed End Funds at [www.cefconnect.com](http://www.cefconnect.com) to run screeners across the small 500 item universe of CEFs. For illustration compare symbol PDI with symbol PGZ for example of high yielding choices, one of which trades at a premium and the otehr trades at a discount.
There are many types of ETF, Most here are referring to index ETF. But there are also dividend ETF, covered call ETF, Collateral Loan obligation ETF, and credit ETFs. And then for most of these your would also find CEF (Closed End funds). CEF are more like investment businesses instead. ETF are more like mutual funds but listed on the stock exchanges like. CEFs are listed on exchanges like common stocks. Mutual funds are generally not listed on exchanges. Each has different uses and performance. So you can use a combination to suit any need. CEFs I like are ARDC 12% dividend yield, EIC 10%. UTF 7%, UTF7%. Some very good covered call ETFare QQQI 13% dividend yield, and SPYI 11%. These also take steps to reduce the tax you pay on the dividend you receive. They are great for generating income in a taxable acount.
time to get aggressive with the income funds on DRIP and hope its enough to turn off that DRIP in about 15 years SPYI, QQQI, JEPQ are staples of income investing. you could go CEF's with RQI and UTG or they could go full REGARD and hit up the YM Funds on DRIP for a quick snowball, i suggest AMZY, CONY and ULTY
by picking individual stocks, YES. Consistantly, No. But many people tiny of stack as companes like Apple vision and Chevron. And it is hard to find the companies that will score big each year. Many don't think of ETF and CEFs as stock But they do sell stock. And these investment companies are in many ways they are similar to companies They don't often grow like companies but they do often pay a higher dividend. So you don't need to consistently make 14% or more to retire. 8% works just fine if it is consistent and you consistently by more shares of the ETF or CEF every year. These funds pay cash dividends directly to you. So $100,000 at 8%Will pay you $8000 a year. So 1 million will earn you 80k a year of income at 8%. And right now there are funds that pay reliable 10% dividend I am currently investing in funds like QQQI 13% ARDC 12%, SPYI 11%, EIC 10%, PBDC 9% which all yield more than 8% and I am getting significant intcome from these funds. So the key to a comfortable retirement is to invest for income. Growth can give you very large returns but it is not consistent. And when you need income you have to sell it off with lowers your future long term future earnings. Dividend give your income now without sacrificing your long term earnings. I have a mix of dividend funds and growth funds. I use the dividend funds for income. The growth is used to maintain my income and serves as an emergency fund.
This is why I switched from growth index fund to dividend ETF and CEF fund. I am currently invited in QQQi 113% yield, ARDC 12%, SPYI 11%, EIC, 10%, PBDC 9%, SCYB 7% UTF 7%, UTG7%, PFFD 6%. Overall these funds produce 5K a month of income. Most goes to living expenses including healthcare I retired at 55). But 1K a month is reinvested which will help minimize inflation. When the dividends come in they go straight into a money market. fund. So I always have cash on hand. But I plan on keep a sizable amount in growth index for emergency needs, Unexpected large bills, and if needed I can harvest some growth and use that to increase my income as an inflation adjustment. The funds can also be used to replace any fund if it starts having issues.
That can happen with the stock of a company but not a ETF, CEF or mutual fund.
As I have repeatedly stated, it is speculative until new rules and guidance are published. Also - you may be misunderstanding the differences between a PE manager and a PE fund. It's going to be more important to have rules on fund leverage. I am guessing that it will be similar to how a public CEF which uses leverage work today. Leverage is already present in publicly traded funds. What I would be watching for is that the vast majority of private market funds today are not '40 Act funds. I actually don't even know if I've ever seen a '40 Act PE fund. So that itself will be interesting to see how regulators figure that out. I also took a quick look through the post. I have mentioned liquidity as a risk. The other risk which I assumed people understood but no one has mentioned is price discovery of equity assets. I think that debt assets will be simpler to price simply based on credit quality and duration. But I do think that price discovery will be a challenge for any fund that plans to hold private equity. A TDF normally has multiple sub-advisers managing different sleeves - I would expect that if a TDF holds any private market assets whether it's debt or equity - it will simply be some smaller allocation relative to the other sleeves which is managed by a PE manager. It's unlikely that a TDF would fail simply due to a significant draw-down of a single sleeve.