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@zubairadamu2477
9 күн бұрын
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@AlilatTiamiyu
9 күн бұрын
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes...
@zubairadamu2477
9 күн бұрын
@@AlilatTiamiyu That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@AlilatTiamiyu
9 күн бұрын
@@zubairadamu2477 My advisor is VICTORIA CARMEN SANTAELLA;
@AlilatTiamiyu
9 күн бұрын
You can look her up online
@TylerMohn-g9l
9 күн бұрын
@@AlilatTiamiyu The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
@mn1298
3 жыл бұрын
I CANT BELIEVE SUCH GOOD CONTENT ONLY HAS SO MANY VIEWS! IF YOUR CHANNEL WAS A STOCK ID INVEST ON IT!!! KEEP IT UP ITS AWESOME
@ValueForInvestors
3 жыл бұрын
Haha, thank you Matheus!
@SunofSadric
3 жыл бұрын
excellent analysis, I've been looking into high yield dividends for my investment strategy and was kind of overwhelmed with choices lol. Great video, subscribed :)
@ValueForInvestors
3 жыл бұрын
I totally get that, there’s a ton of options out there! And most of them not very good ones 😅 glad you found this helpful!! Thanks for subscribing! 🍻
@JeffreyGillespie
3 жыл бұрын
Excellent presentation on how to handle closed-end funds.
@ValueForInvestors
3 жыл бұрын
Thank you Jeffrey! 🍻
@jdubincali
3 жыл бұрын
The thought process behind your decision is GOLD. Thank you for your post. I have CRF, RA, FEN, and VBF in my really diverse portfolio.
@ValueForInvestors
3 жыл бұрын
Thanks for the feedback! 😀 What is your strategy with CEFs - investing for income, or just extra diversification?
@jdubincali
3 жыл бұрын
@@ValueForInvestors both...lol. I think the fairest characterization when picking CEF is primarily very aggressive income, then growth. I then balance my risk with my rent properties.
@ValueForInvestors
3 жыл бұрын
Fair enough 😂 I'm going through a bit of an identity crisis with my investing strategy - shifting from income investing to a growth/total return mindset. Trying to figure out if CEFs still deserve a place in the portfolio.
@joeblow2069
2 жыл бұрын
I like your analysis but many of the best overall CEFs are sector funds and they cannot be ignored. Health funds from Blackrock and Tekla are among the best. BME-BMEZ-HQH-HQL-THQ-THW. You were right on about USA but ASG is also well worth owning from the same company. ASG did not make your list because it does not sell at a discount but it is still well worth it. Also there are sector CEF funds that significantly outperform their open ended peers. A few Utility funds and Real Estate funds for example.
@ValueForInvestors
2 жыл бұрын
This is a good point - if you want to narrow down to a sector, CEFs have some great options!
@ahmedvanya8840
3 жыл бұрын
Impressive analysis and thought process; thanks for sharing!
@ValueForInvestors
3 жыл бұрын
Thanks for the comment Ahmed! 😄
@everunciman4620
5 ай бұрын
thanks for sharing, wonderful explanation
@andre-nunes
3 жыл бұрын
Interesting picks I’m in CSQ and NCV BST is another good find although it’s more tech focused
@ValueForInvestors
3 жыл бұрын
Thanks Andre, I’ll have to give those a look!
@ddelmarsmith
2 жыл бұрын
Thanks for ideas - like CSQ and BST
@dominikfrohlich6253
3 жыл бұрын
I think by ruling out focus area CEFs you ruled out a lot of the good CEFs like UTG, UTF or RQI. Think about it: A management team can only have so much experience in different sectors, they are best when they are sector specialists like real estate or utilities. For a broad diversification I would always use an ETF. Also ROC type of returns aren’t always a bad thing, only if the long term total return is lower than the yield, which means destructive ROC.
@ValueForInvestors
3 жыл бұрын
Hey Dominik! You make a great point about the management teams’ experience. This was just my entry into CEFs, so I wanted to take a broader look at them. I just did a recent video where I took a look at real estate CEFs, and RQI checked all the boxes for me - I’m super excited to be holding that one. I’ll have to revisit the others you mentioned, but I’m not too bullish on some of the other sectors that CEFs tend to focus on, which is why I wanted a more blanketed approach. I agree that the occasional ROC isn’t too bad, but it’s just an easy thing to look at when exploring a bunch of options at once. I appreciate your comment, thanks for watching and sharing your thoughts!
@DennisRay99
3 жыл бұрын
Agreed
@severusrobinson7694
3 жыл бұрын
Awesome information ! ℹ️ keep the channel up !
@ValueForInvestors
3 жыл бұрын
Thanks Devon!! 🍻
@TraeRobrock
3 жыл бұрын
Just came across your video on my own research into CEFs. This was great content. I'd love to connect sometime and pick your brain about CEFs more.
@ValueForInvestors
3 жыл бұрын
Thanks Trae, glad you enjoyed it! CEFs are super cool - especially if you're seeking income. But like most investments, there's more bad ones than good ones out there. 😂
@jibberjabber-fm6pb
2 жыл бұрын
csq has been one of the best performing cefs
@colinhiggins4779
2 жыл бұрын
What do you think of ADX ?
@glennshoemake4200
Жыл бұрын
Currently have a small amount in PDI but was thinking of adding more shares due to their monthly payouts, special payout this month and never having missed a dividend payout. Curious to know your thoughts on them for a long term collect the dividend hold.
@lh2623
2 жыл бұрын
Turns out USA was a great buy at 8% discount. It now trades at a 2% premium.
@michaelprice83
2 жыл бұрын
What seems to be often misunderstood is that a shrinking discount indicated a good outlook. Whereas discount widening can indicate a fund is unlikely to perform well in the near term. The exception to this is when a fund is oversold in a market-wide selloff. This is probably the only time when a discount is a free lunch. USA for example performed very well after this video was released. It now trades at a large premium!
@joeblow2069
2 жыл бұрын
With an average yield of 7.75% reinvested into more shares you will double your shares in 10 years. If the fund doubles in price over that same decade it means an average total return of 15% which doubles your money every 5 years. That is how you make money with these funds.
@TheJoshSchneider
2 жыл бұрын
I agree. Even if the fund goes down in share price, as long as it keeps the same monthly distributions it could be good long term. Always reinvest dividends. Compound investing .
@tromboneJTS
2 жыл бұрын
Good call on ACV. How are you positioning yourself now with interest rate changes and market fear approaching a max? Can you do a re-analysis of your top picks again as an update? Do you still like USA?
@louis20122
2 жыл бұрын
What do you think about PDI and PTY?
@desiple1190
2 жыл бұрын
Tyler what do you think about CRF and CLM? Let me know what you see and if they are worth it. They both are over 15% div monthly. Thank you!
@mcl4896
3 жыл бұрын
Good information. Well done. Have you had a look at GDV CEF - The Gabelli Dividend & Income Trust?
@ValueForInvestors
3 жыл бұрын
Thank you!! I definitely recognize the name.. might have to give it another look to refresh my memory. 🤔 what’re your thoughts on it?
@williamo.2519
3 жыл бұрын
Look at CHW. I bought it at a discount.
@ValueForInvestors
3 жыл бұрын
Buying at a discount is what it’s all about! I’ll give it a look. 👍🏼
@ashishagrawal4906
2 жыл бұрын
Great video as always Tyler! Within the CEF world, would you still recommend USA in the current environment?
@ValueForInvestors
2 жыл бұрын
It depends on your objective I suppose - it looks like they are still maintaining distributions, and some of their biggest holdings are large cap tech. It doesn't seem like the best option for safe income & preservation of capital if there is more blood to come in the market, but perhaps it bounces back with the market and you get income in the process. I don't personally mess around with CEFs anymore, so I haven't followed too closely - mostly index funds for me these days. 🙂
@lh2623
2 жыл бұрын
@@ValueForInvestors why did you get out of CEFs?
@aaronmeadows1667
3 жыл бұрын
I've had MMT for about 25 years. In very recent years it used RoC as part of its distribution. I'm curious to your thoughts on this one.
@ValueForInvestors
3 жыл бұрын
Wow, that's a long time! Let me start with a question to you - what made you buy it in the first place, and why have you held so strong all these years? First their strategy - globally diversified bund fund. I like it! Seems like a safe strategy to keep in the portfolio for a retiree looking for a higher yield. The next thing that jumps out is the price hasn't done much in 25 years. It's bounced around $6-$7 almost the whole time. On the bright side, it hasn't decreased significantly, so that's a pretty solid track record - if you're comfortable getting ALL of your returns via distributions. As a retiree or income investor, that might be acceptable (but I want to see price appreciation, personally). The distribution rate looks more or less consistent, so that's another good quality for an income investor/retiree. Leverage & expenses also look to be on the low end, so that's good, too! To me, all signs are pointing to this being a decent pick for a retired investor. Return of capital is a red flag for me as a young investor who may not hold for that many years - for a retiree, or someone planning to hold for their lifetime, it's not a huge deal (as long as the fund doesn't make a habit of it, which could signal trouble). My final thoughts : after holding this long, you may want to check for its lifetime return of capital - selling could be costly. But if I were holding this fund at or near retirement, I think I'd ride it out to get bond diversification at a higher yield. Who needs capital appreciation at that point anyway? Thanks so much for the comment & sharing your holdings! I enjoyed taking a look at this!
@TheJoshSchneider
2 жыл бұрын
This is a good video and good to see a young person with this much enthusiasm toward investment objectives. What Are closed end funds main objectives? To grow the stock price? How many out of that 500 you analyzed are trading at much higher valuations than they were when they were at inception? I think the goal for these funds is to maintain a steady distribution. They do use a lot of leverage and I know some return capital. I get that. What I don’t get is how they can return so high of a distribution. Like Guggenheimer stock ticker GOF for example. It seems their main investments are a lot of high-yielding junk bonds. I don’t know what the interest rate is on those bonds but it’s probably pretty high. But a lot of them are not investment grade from what I understand. I mean seriously a 10% yield? That’s high. My strategy with this would be to buy these things and compound the interest monthly. Every month just directly reinvest the dividends as you buy more shares with your own money. Compound investing is like a snowball, it takes time but you will really start to see things grow after 10 years. Then hopefully one day you no longer need to buy any more shares, and then you can get out of the DRIP program and keep the dividends that will be distributed to you for spending money. A lot of retirees do this. I’m not seeing your video was bad, I just don’t think that closed and funds are going to appreciate a lot in overall value over the long term. If you want to do growth then by the S&P and hold it don’t ever sell it. You could definitely make money with growth stocks. I don’t see any closed-end funds growing like a stock would though. But please enlighten me if I’m wrong I would love to see a closed and fund that was once $20 a share and now it’s like $250 a share.
@ValueForInvestors
2 жыл бұрын
You make some good points Josh! I agree that many are focused on maintaining steady distributions - not growth. There are a few with growth objectives (BST and BSTZ come to mind). But with the leverage and other strategies involved, these are probably not ideal growth investments because you can see many of them perform quite poorly over longer term periods. I don't really do anything with CEFs these days, I mainly stick to index funds and a few growth stocks/ETFs.
@TheJoshSchneider
2 жыл бұрын
@@ValueForInvestors yeah I just think that it’s hard to actually grow the value of a fund if the fund is distributing much of the income that’s coming from investors. I’m still not sure I’m 100% confident I even understand how closed end funds work. I just saw another video from another KZitem guy who has a great stock website analyzer that breaks down what can actually happen if you invest in these things. I definitely wouldn’t invest in any funds that lowered the distributions over the course of their existence. Only closed-end funds that maintained the same distribution or raised it. Here is a link. Check it out it’s really cool! www.portfoliovisualizer.com/backtest-portfolio#analysisResults
@lfs-x1r
3 жыл бұрын
No NUSI, JEPI, PTY, UTF and QQQX ?
@ValueForInvestors
3 жыл бұрын
It's been a few months, so some of the metrics I used to screen out these CEFs might have changed 🤔 Also I left out UTF because I wanted to look at funds with a broader approach - not a focused strategy.
@joeblow2069
2 жыл бұрын
Always look at 2 things as retirement investors. This information is provided by Schwab and probably your broker as well. Tax efficiency-Some would argue that the high yield(High income) mean higher taxes but there are well managed funds that provide most of their income from capital gains and ordinary income vs dividends which means taxable income at just 15%. I would avoid funds with a tax efficiency above 2%. Unfortunately bond funds like Pimco do not meet this standard. Upside and downside capture ratios-These compare a fund to the major indices in performance in up and down markets. Study these and use them based on where you are at as an investor. Those about to retire who worked hard to save and invest will focus on the downside capture ratio and seek out funds that hold up better in down markets. The health care funds are outstanding for this. BME-BMEZ and the Tekla funds have downside capture ratios in the 70s which means when the market is down 10% those funds are only down 7-8%. Again this is where bond funds fall flat. You might be thinking bonds are more stable but closed end bond funds are just as volatile as stock funds. Some sectors like Health are more stable.
@stephenedwards9341
2 жыл бұрын
Anybody else invested in RA? What do you think? Long term hold? Thanks!
@Nemo-yn1sp
2 жыл бұрын
This would be great if there were no background noise - too distracting from knowledge shared.
@ValueForInvestors
2 жыл бұрын
Sorry about that, I’ve upgraded my set up since then! We’re sounding good now. 💪🏼
@mangar3147
3 жыл бұрын
Prefer ETF's for muni's.
@ValueForInvestors
3 жыл бұрын
Thanks for sharing! 🍻
@neineinok4269
3 жыл бұрын
So basically you wouldn't invest in any CEF except for USA if it dips a bit? Btw is return of capital only bad due to taxation? As an investor in amercian CEF from europe, I get taxed 15% regardless, can I safely invest in CEF's with return of capital like "GLO"?
@ValueForInvestors
3 жыл бұрын
There are still a few CEFs I like, although I've personally stepped away from the CEF strategy in favor of growth-oriented investments. Besides taxation, return of capital can be a red flag that the fund isn't earning enough profits to pay your distribution (but this isn't always the case). Unfortunately, I don't know how taxation on CEFs works for foreign investors, so that is not a question I can answer for you!
@neineinok4269
3 жыл бұрын
@@ValueForInvestors thanks for the answer. Can you review PFL, NCZ, CRF and CLM if you ever have the time? I know 3 of them are trading at with a premium, but would nice to hear your opinion.
@NiceGuyEddy00
3 жыл бұрын
I am currently holding $RA and $PCI for my CEF's. RA in particular has done very well for me; how do you think it stacks up to $USA?
@ValueForInvestors
3 жыл бұрын
RA & USA look like very different CEFs. Different strategies, portfolios, etc. Tough to compare - but you're doing really well if you bought RA after that March crash. 🙌
@denisk3269
3 жыл бұрын
😘
@ValueForInvestors
3 жыл бұрын
😍
@ronrocheleau3035
3 жыл бұрын
Are you Canadian? Cause here in the US we don’t have many CEFs
@ValueForInvestors
3 жыл бұрын
Nope, I’m in the US. I’ve found plenty of CEFs. Check out CEFconnect.com and you can browse through them all!
@ronrocheleau3035
3 жыл бұрын
@@ValueForInvestors / CEFconnect is kind-of annoying to use. I’ve given-up with it. Did you check-out that Canadian dude’s portfolio?
@ValueForInvestors
3 жыл бұрын
@@ronrocheleau3035 Yeah, I get that - it could be easier. But it's a great start for sifting through all the funds. You're going to have to be more specific - which Canadian dude? 😂
@tortoisehead30
2 жыл бұрын
I bought a few shares of USA, but now I'm realizing I don't understand it as much as I thought I did. Looking at the holdings, it's just a basket of stocks, mostly from the S&P 500. How do they pay 10% when those stocks yield less than 2%? Do they sell their holdings in order to make the distribution payments?
@ValueForInvestors
2 жыл бұрын
I think you’re right - a mix of dividends and selling stocks for realized long-term gains. It is interesting that it’s such a plain, diverse portfolio otherwise. No leverage, or options… I’d keep an eye on that return of capital!
@timbradfield788
3 ай бұрын
@@ValueForInvestorsNo return of capital on USA. From USA website for distributions: 11.28% qualified dividends, 0.69% non qualified dividends, 88.03 % capital gains. 0 return of capital. Fund has portfolio turnover and gets capital gains selling one stock and buying another.
@richardplacido4231
3 жыл бұрын
Hard to hear you with the music. Get rid of it. Bush league.
@ValueForInvestors
3 жыл бұрын
Thanks for the feedback! Been working on that lately. 👍🏼
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