VT - ETG: Nearly 7% Attractive Income Yield And Global Exposure

2024-02-11 09:00:00 ET

Summary

• Eaton Vance Tax-Advantaged Global Dividend Income Fund is a closed-end fund that invests globally in the equity of U.S. and non-U.S companies and, to a lesser extent, in preferred and fixed-income securities.
• The ETG CEF has a good long-term record of performance. However, the recent performance has been sub-par, more so on the market price.
• We believe it is an attractive fund for income investors that is highly diversified with global exposure and has proven to provide sustainable income in good times and bad.

Introduction:

Eaton Vance Tax-Advantaged Global Dividend Income Fund ( ETG ) is a closed-end fund, or CEF, that was incepted in January 2004. The fund's primary objective is to provide a high level of after-tax income. Along with total return, it also provides a reasonably high income (6.80% at current prices), even though it is a bit lower than many other CEFs. As the name indicates, the fund tries to make the distributions in an efficient tax manner as much as possible. To make distributions tax efficient, it provides some of the distribution as ROC (return of capital). So, in that sense, it may be better to buy this fund in a taxable account....

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