BNDW - ZTR: Maintaining American Exposure Despite The Market's International Rotation

2025-05-14 14:11:08 ET

Summary

• Virtus Total Return Fund Inc. offers a high 10%+ yield and flexible asset allocation, favoring equities for long-term inflation protection and total return.
• The ZTR fund has outperformed U.S. indices recently, thanks to its global and hybrid approach, but hasn't fully capitalized on capital flight from the U.S.
• Distributions drive almost all total returns; best held in tax-advantaged accounts due to tax implications for ordinary accounts.
• Currently trading at an 11% discount to NAV, the ZTR fund is attractively valued versus peers, though its 4% expense ratio is a consideration.

The Virtus Total Return Fund Inc. ( ZTR ) is a closed-end fund, or CEF, that investors can purchase as a means of obtaining a very high level of income from the assets that they already possess. Unlike many other closed-end funds, this one does not focus on any specific asset class. Rather, it switches its portfolio between equities and fixed-income securities, depending on what the fund’s management expects will deliver the highest total return. For nearly all of the past decade, that has been common equities. We can see that here:

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