EOS - EOS: One Of The Few Undervalued Tech CEFs
2024-03-09 04:07:32 ET
Summary
- Eaton Vance Enhanced Equity Income Fund II is a buy-write fund that utilizes call options to extract dividends from equities.
- EOS's 50/50 portfolio structure and 4% out-of-the-moneyness have helped it outperform other buy-write CEFs and ETFs.
- Despite its strong performance, EOS is trading at a -4.7% discount to NAV, making it an attractive option for tech exposure.
- EOS has closely tracked the Nasdaq in the past year when analyzed from a total return perspective.
- Many vehicles with 100% options coverage have lagged in the past year when compared to the underlying index.
Thesis
With the massive rally in the Nasdaq and technology shares this year, it is worth revisiting an Eaton Vance name focused on said sector. We started covering the Eaton Vance Enhanced Equity Income Fund II ( EOS ) a year and a half ago, closely analyzing its structure and technology tilt....
EOS: One Of The Few Undervalued Tech CEFs