RVT - RVT: 8% Yield From A Well-Structured Small-Cap Fund
2024-01-27 20:45:00 ET
Summary
- The Royce Value Trust is a small-cap-focused CEF that invests in companies with high ROIC and strong fundamentals.
- RVT has a diversified portfolio of 393 companies, with a higher skew towards industrials, technology, and materials.
- It also offers a yield of 8%, which is about 6.5% above what the Russell 2000 index provides, making it attractive for value-focused investors who also prefer current income.
- In this article, I elaborate on the key portfolio characteristics and provide a basis for my bullish stance.
The Royce Value Trust ( RVT ) is a small-cap-focused CEF that invests in companies with high ROIC and strong fundamentals. According to RVT's policy , there is also a valuation component, which guides the final investment decision-making (i.e., there has to be a discount to the underlying value)....
RVT: 8% Yield From A Well-Structured Small-Cap Fund