EXG - EXG: Moving This Equity CEF To Hold After The Run-Up (Rating Downgrade)
2024-05-18 07:52:26 ET
Summary
- The Eaton Vance Tax-Managed Global Diversified Equity Income Fund is an equity closed end fund that provides exposure to global equities.
- In a previous article, EXG was given a 'Buy' rating based on attractive valuation metrics, and it has performed well since then.
- The CEF's discount to NAV is high due to the low VIX environment (low volatility reduces the value of options sold by the fund).
- I expect for the fund discount to remain widen until the market re-enters a sustained high volatility environment (VIX above 20).
Thesis
The Eaton Vance Tax-Managed Global Diversified Equity Income Fund ( EXG ) is an equity closed end fund which we have covered extensively in the past. The CEF comes from the Eaton Vance platform, and provides an expression of global equities returns....
EXG: Moving This Equity CEF To Hold After The Run-Up (Rating Downgrade)