MCN - ETB: Tech-Heavy Portfolio And A History Of Underperformance Hurt This 9.63% Yielding CEF

2024-04-26 05:51:13 ET

Summary

• Eaton Vance Tax-Managed Buy-Write Income Fund offers income-focused investors the opportunity to earn a high level of income while still having the potential for capital gains.
• ETB has a yield of 9.63%, which compares well to similar funds in its category.
• The fund's performance has underperformed the S&P 500 Index, but when considering distributions, investors have seen a total return of 10.70%.
• The fund has underperformed its peers over the past five years by quite a lot.
• The distribution appears covered for now, but the latest GDP report indicates a potential stagflation scenario, and that will not be good for this tech-heavy fund.

The Eaton Vance Tax-Managed Buy-Write Income Fund ( ETB ) is a closed-end fund that income-focused investors can purchase as a means of achieving their goal of earning a high level of income from the assets that they have accumulated. One of the nice things about this fund is that it is not necessary to sacrifice the upside potential that can accompany an investment in common equities. This is different from many other income-focused funds that invest solely in fixed-income securities. Another nice thing about this fund is that the investor does not need to sacrifice yield, as is sometimes the case with those funds that invest in common equities. The Eaton Vance Tax-Managed Buy-Write Income Fund yields 9.63% at the current price, which compares reasonably well with the yield that is available from similar funds:

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