CEF managers' ability to hold onto underpriced illiquid securities in times of market stress represents an advantage over open-end funds that may have to sell to meet unexpected redemptions, says Morningstar's Cara Esser.
As investors ditched certain income-producing assets on worries of rising rates, an abundance of fixed-income CEFs moved into undervalued territory, according to Morningstar's Cara Esser.
A recent Morningstar survey found that current closed-end fund investors are using the vehicles for retirement income, but potential investors desire more education.
The current environment is positive for CEF investors as more attractive discounts are coming to the surface, particularly with fixed-income vehicles, says RiverNorth's Patrick Galley.
Account-maintenance, transaction, and investment expenses have the potential to eat away at your tax savings.
CEFs have a role in risk-tolerant portfolios.
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