XYLD - ETV Is Crushing XYLD And JEPI At Least At NAV

2024-01-25 10:45:50 ET

Summary

• If you're looking for an opportunity in a very defensive option-write fund, the Eaton Vance Tax-Managed Buy/Write Opportunity (ETV) is tough to beat.
• Over the past year, ETV's NAV total return has crushed similar ETF funds like the Global X S&P 500 Covered Call ETF (XYLD) and JPMorgan's Equity Premium Income ETF.
• Of course, that's at NAV, which is the true apples-to-apples performance comparison. But at market price, it's been a different story and shareholders continue to sell ETV down.
• But with ETV's NAV at a 52-week high and beating the S&P 500 YTD while offering a very generous +9.2% tax-advantaged yield, the reasons to own ETV are piling up.
• It's one thing to be selling CEFs into year end, but January is usually a very good month for CEFs as investors look for under-valued opportunities.  And I believe ETV offers one of the best right now.

I've been writing on and promoting many of the Eaton Vance equity CEFs for the past couple years, and frankly, I've been absolutely correct about these funds outperforming at NAV compared to their benchmarks....

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