EXG - EXG: Discount Remains Attractive On This Fund With A Global Tilt

2024-03-05 11:23:39 ET

Summary

• Eaton Vance Tax-Managed Global Diversified Equity Income Fund offers global exposure while also implementing a call-writing strategy.
• The EXG closed-end fund is trading at a large discount on both an absolute and relative basis, making it an attractive investment choice on the market today.
• The fund's distribution yield is attractive at 8.37%, and it is paid monthly; as always with equity funds, most of this will need to be covered through capital gains.

Written by Nick Ackerman, co-produced by Stanford Chemist.

Eaton Vance Tax-Managed Global Diversified Equity Income Fund ( EXG ) invests in a fairly diversified portfolio, including providing global exposure. The fund is quite similar to its sister fund, Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund ( ETW ). If the name alone doesn't tell you what the difference between these closed-end funds, or CEFs, is, then you're probably not alone.

Both funds incorporate global exposure, but the benchmark for EXG is, more specifically, the MSCI World Index. For ETW, they incorporate both the S&P 500 and MSCI Europe Indexes as its benchmark. Both of these funds then also incorporate a call-writing overlay strategy, writing against indexes. This is also where they slightly diverge in terms of their approach. ETW overwrites up to nearly 100% of its value, and EXG is at around 50%....

For further details see: