FMD Capital Management

Posts Tagged: pcef

Presentation: Generate High Income And Alpha Using Closed-End Funds

Written by David Fabian, May 18th, 2017

I was fortunate enough to be invited to speak at the Las Vegas Money Show this week and chose to deliver an educational presentation on closed-end funds (CEFs).  My focus was on the right way to analyze, select, size, and trade these unique investment vehicles.

There are a number of advantages to using CEFs in your portfolio – from bolstering your high yield exposure to tapping into an active investment managers’ prowess.  Whatever your goal may be, these tools can be an effective way to generate income and alpha when used correctly.  Below are the PowerPoint slides from my presentation that you can download to view.

May 2017 CEF Presentation Slides

5 High Yield ETFs of CEFs For Tactical Income Investors

Written by David Fabian, April 07th, 2017

Many investors are making the right choice to build their core portfolios around low-cost, liquid, and diversified ETFs geared towards dividend paying stocks and bonds.  These funds provide transparent exposure to a broad range of asset classes without the drag of high expenses.

While this core exposure is important, there may also be a desire to further diversify your holdings towards alternative investment styles with a penchant for higher yields.  This is the foremost objective behind ETFs that invest in a basket of closed-end funds (CEFs).  Read more

Are ETFs Made Up of CEFs Worth Owning?

Written by Michael Fabian, February 11th, 2016

While we are huge proponents of leveraging low cost and liquid ETFs for virtually every asset class; ETFs that invest in closed-end funds (CEFS) are a different story altogether.  The two funds that have garnered the most investor attention in this space are the PowerShares Closed End Fund Composite ETF (PCEF) and the Yieldshares High Income ETF (YYY).  Both contain a seemingly diverse array of underlying asset classes, sectors, and strategies. Read more

The Incredible Volatility of Closed End Funds

Written by Michael Fabian, July 10th, 2015

We are now past the halfway mark for 2015, and very little headway has been made for the vast majority of closed-end funds (CEFs).  Examination of the two most popular CEF indexes shows mixed results year-to-date.  The broadly diversified PowerShares Closed End Fund Composite ETF (PCEF) is only marginally higher, while the more narrow-focused YieldShares High Income ETF (YYY) has posted modest losses for 2015.  Read more

Does your Portfolio Yield 8%?

Written by Michael Fabian, April 02nd, 2015

For those investors inclined to assume a bit more risk in exchange for the chance at a higher return, closed end funds (CEFs) can provide both yield enhancement and exposure to more exotic strategies.  However, I think it’s important to point out the differences between a CEF from a management perspective come in stark contrast to open end funds (OEFs) for a few specific reasons.  Read more