UTG - UTG: Recent Fed Decisions Highlight Why This Fund's Strategy Isn't Working

2024-04-06 06:15:33 ET

Summary

• Leveraged income funds like Reaves Utility Income Trust have been negatively impacted by inflation and rising rates.
• UTG has consistently struggled over the last three years, offering investors minimal returns compared to peers.
• The utility industry outlook remains poor, and the fund's reliance on long-term capital gains and high leverage costs hinder its ability to provide substantial income or returns.

Some investing strategies work in any economic environment, but most individuals will need to adjust their portfolios in a changing financial landscape even as their long-term goals remain the same....

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