XYLD - CEF Focus Investing - 3 New Entries For My Income Portfolio
- As a tool to evaluate candidates for a long-term CEF portfolio, I formulated a simple “rule of thumb” based on the interactions among NAV performance, discount/premium on NAV, and leverage.
- For a safe CEF investment, this rule of thumb suggests first choosing CEFs with a positive NAV since inception, and then looking for the highest discount and the lowest leverage.
- Based on my rule, I recently added three new funds to my Cupolone Income Portfolio, all with a positive NAV since launch and various combinations of discount/premium and leverage.
- I also updated my secondary Giotto Income Portfolio of ETFs and ETNs to consolidate my positions in instruments using a covered call strategy.
For further details see:
CEF Focus Investing - 3 New Entries For My Income Portfolio