CPZ - IDE: A Unique CEF Trading At A Huge Discount

2024-05-20 17:34:14 ET

Summary

• Voya Infrastructure Industrials and Materials Fund is an equity closed-end fund that invests primarily in common stocks, making it attractive to investors looking for income and potential upside.
• The IDE fund boasts an 11.74% yield, higher than most assets in the market, and compares well to its peers in terms of yield.
• The fund's recent performance has been disappointing, with a decline of 17.11% over the past three years, but its high yield may still attract income-focused investors.
• The fund has a high degree of diversity and provides exposure to sectors that are not commonly found among other closed-end funds.
• The fund fully covered its distribution during the most recent fiscal year and trades at an enormous discount to net asset value.

The Voya Infrastructure Industrials and Materials Fund ( IDE ) is a little-known closed-end fund, or CEF, that investors can employ as a means of generating income from the assets in their portfolio. There are many closed-end funds that can be used for this purpose, and indeed since most closed-end funds tend to have the highest yields available in the market, they tend to be very popular with income-hungry investors. This one has an advantage over many of the other closed-end funds in the market, however, as it does not require investors to sacrifice the potential upside that could be obtained from an investment in common equities. This is because this is an equity closed-end fund that invests primarily in common stocks. That is something that could prove very attractive to many investors as inflation continues to ravage the economy, due to the simple fact that common equities tend to be better than fixed-income securities at protecting wealth against a declining dollar.

The Voya Infrastructure, Industrials, and Materials Fund certainly does not sacrifice any yield despite being an equity fund. At the current share price, the fund boasts an 11.74% yield that is obviously very attractive compared to most assets in the current market environment. It also compares quite well to its peers, as can be seen here:

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