BIGZ - BIGZ: Hasn't Lived Up To Its Potential So Far
2024-07-21 04:04:51 ET
Summary
- BlackRock Innovation and Growth Term Trust focuses on small and mid-cap technology stocks, including private companies, with a 12% coverage ratio for covered calls.
- The fund's performance has been underwhelming since October 2022, up only 5% in share price and 25% in total returns, potentially due to its choice of stocks and private holdings.
- Currently trading at a NAV discount of -13%, the fund pays about 9 cents per share in monthly dividends, subject to change based on NAV fluctuations.
BlackRock Innovation and Growth Term Trust ( BIGZ ) is another technology related closed-end fund by BlackRock, which is known for having income focused CEFs that boost distributions by selling covered calls. I've covered this fund last year when it was still relatively new in an article titled BIGZ: It's Too Soon To Judge Yet. The fund was launched in mid-2021 which marked the top for many small-cap and mid-cap technology stocks, which was one of the reasons it was underperforming at the time, so I felt it was too early to judge the fund. Now that some more time passed, we can look at the fund with a more judgmental focus....
BIGZ: Hasn't Lived Up To Its Potential So Far