MCN - ETW: Slight Increase To Foreign Exposure And A Very Attractive Price (Rating Upgrade)

2024-06-27 07:07:34 ET

Summary

• The Eaton Vance Global Tax-Managed Buy-Write Opportunities Fund offers a high level of income with exposure to global equities.
• The Fund's current yield of 9.66% compares well with peers and provides a sustainable level of income for investors.
• The Fund's portfolio changes, distribution analysis, and valuation suggest it is a reasonable option for high income seekers with some risk tolerance.
• The Fund has increased its foreign exposure over the past several months, which appears to have also increased its income a bit.
• The fund recently increased its distribution and it appears sustainable.

The Eaton Vance Global Tax-Managed Buy-Write Opportunities Fund ( ETW ) is a closed-end fund that investors can purchase as a method of obtaining a high level of income from the assets in their portfolio along with some exposure to global equities. I have discussed the importance of global equity exposure in a variety of previous articles, which most readers can likely remember. For example, this article was published a few years ago, but some of its points remain relevant today. The fact that this fund provides a high level of income is undoubtedly going to be appealing to any investor in common equities due to the fact that most equity indices have very low yields today. For example, consider the current yields of the following equity indices:

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