I have held two closed end funds for almost 40 years. A purchase price advantage exists when one trades at a discount to the value of its portfolio. Mine have beaten their indexes by a small margin and pay nice dividends and LTCGs. Yes their expenses exceed those of Vanguard index funds but they have provided a small margin of performance ahead of their indexes. Caveat: They comprise only a small portion of my portfolio as do REITs which I hold for their dividends.
Closed end funds are bought and sold like common stocks so can be purchased and sold "commission free" at Schwab, Fidelity and Vanguard.
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Last edited by manaboutown; 04-04-2024 at 09:28 AM.
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