LLY - ETY And ETW: Delivering Tax-Friendly Monthly Distributions To Investors
2024-02-21 08:30:26 ET
Summary
- Eaton Vance Tax-Managed Diversified Equity Income Fund and Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund utilize a call-writing strategy to help deliver investors monthly distributions.
- Both ETY and ETW focus on dividend-paying stocks and are tax-managed in an effort to minimize and defer taxes, but ETW has a global tilt.
- ETW is more attractively priced on an absolute and relative discount basis but has historically been the weaker performer as well due to global exposure.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) and Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) both invest in equities and utilize a call-writing strategy to deliver monthly distributions to their investors. The call-writing strategy utilized by these funds often lends itself to a more tax-friendly nature when it comes to the tax character of the distributions. Hence the "tax-managed" terminology in each of their names....
ETY And ETW: Delivering Tax-Friendly Monthly Distributions To Investors