XFLT - RIV: This High-Yielding Fund's Valuation Is Getting Better
2025-01-14 08:06:47 ET
Summary
- The RiverNorth Opportunities Fund offers a high yield of 12.91%, significantly higher than most index funds, appealing to income-seeking investors.
- Despite recent underperformance, the fund's diversified investments in closed-end funds, ETFs, BDCs, and SPACs provide a strong income potential.
- The portfolio is mostly closed-end funds, with surprisingly limited exposure to BDCs right now.
- The fund's leverage amplifies both gains and losses, with current leverage at 33.14%, slightly higher than its peers but still within acceptable limits.
- Trading at a 4.84% discount to NAV, the fund's valuation is more attractive than its historical average, making it a potential buy for income investors.
The RiverNorth Opportunities Fund ( RIV ) is a closed-end fund that provides income-seeking investors a way to achieve their goals. This fund does a very good job at this, as it boasts a very attractive 12.91% yield at the current share price. This yield obviously compares very well to what most index funds possess, as clearly shown here:
Index/ETF |
TTM Yield |
S&P 500 Index ( SP500 ) |
1.26% |
NASDAQ 100 Index ( QQQ ) |
0.74% |
Russell 2000 Index ( IWM ) |
1.42% |
Dow Jones Industrial Average ( DJI ) |
1.94% |
Dow Jones Transportation Average |
1.58% |
Dow Jones Utility Average |
3.06% |