DT - FIF CEF: Upcoming ETF Conversion Set To Erase 5.65% Discount

2024-02-15 12:19:17 ET

Summary

• Closed-end fund, First Trust Energy Infrastructure Fund, will be converted into an exchange-traded fund, narrowing its discount to net asset value to 5.65%.
• The conversion is expected to happen in Q2 2024, potentially erasing the FIF CEF discount and providing a return of around 6.38% for investors.
• The underlying stocks in the portfolio have decent valuations and strong cash flows, making them attractive holdings.

First Trust Energy Infrastructure Fund (FIF) is a pipeline-focused closed-end fund, or CEF, that will be converted into an exchange-traded fund, or ETF. Its discount to net asset value has narrowed to 5.65%. The conversion is supposed to take place in Q2 2024. I expect it to happen early in the 2nd quarter, but I could be mistaken....

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