URTH - EOD: Not A Bad Fund But Not As Globally Diversified As We Would Like
2024-04-30 08:23:04 ET
Summary
- The Allspring Global Dividend Opportunity Fund offers a high level of current income from common equities, providing potential capital gains and protection against inflation.
- The fund yields 9.48%, attracting investors seeking high yields from common equity funds.
- However, the fund's share price performance has declined significantly compared to the MSCI World Index, raising concerns about long-term returns.
- The fund has generally underperformed the MSCI World Index over time, and it failed to fully cover its distributions over the past two years.
- The fund is highly exposed to the United States, so investors who want a high level of foreign exposure would be best served by looking elsewhere.
The Allspring Global Dividend Opportunity Fund ( EOD ) is a closed-end fund that income-focused investors can employ as a method of achieving their goal of providing themselves with a very high level of current income from the assets that are in their portfolios. As the name of the fund suggests, this fund invests primarily in common equities, so potential investors do not need to sacrifice the capital gains potential that these securities possess. The fund should also do a better job of protecting its holders against the ravages of inflation than a fixed-income closed-end fund, which is something that will undoubtedly be appealing in today’s monetary and fiscal environment. After all, recent inflation data shows that the month-over-month movements in the consumer price index have been getting worse over the past few months:
Equities historically provide better protection against inflation than fixed-income securities due to the fact that the profits and cash flows of the issuing companies should increase along with prices in such an environment....
EOD: Not A Bad Fund, But Not As Globally Diversified As We Would Like