2024-04-25 04:15:47 ET
Summary
- The BlackRock Limited Duration Income has a reasonable 9.53% yield, but it is lower compared to other funds investing in similar assets.
- The fund's performance has been mixed, underperforming the Bloomberg U.S. Aggregate Bond Index in 2022 but outperforming it year-to-date.
- The fund employs leverage to boost its effective yield, but its leverage level is higher than some peers and its expenses are relatively high.
- The fund has significantly outperformed its peers over the past five years, so its expenses appear to be justified.
- The bond market might still be overpriced given the declining likelihood of significant rate cuts and the fund has failed to cover its distribution year-to-date.
The BlackRock Limited Duration Income ( BLW ) is a closed-end fund that income-focused investors can employ as a method of achieving their goals. As is the case with most fixed-income funds, this one has a reasonable 9.53% yield at the current price. This yield is reasonable, but unfortunately, it does not compare very well with other funds that invest in similar assets. We can see that here:
Fund Name | Morningstar Classification | Current Yield |
BlackRock Limited Duration Income Trust | Fixed Income-Taxable-Limited Duration | 9.53% |
Allspring Multi-Sector Income Fund ( ERC ) | Fixed Income-Taxable-Limited Duration | 8.78% |
Eaton Vance Limited Duration Income Fund ( EVV ) | Fixed Income-Taxable-Limited Duration | 10.07% |
Eaton Vance Short Duration Diversified Income Fund ( EVG ) | Fixed Income-Taxable-Limited Duration | 9.04% |
Franklin Limited Duration Income Trust ( FTF ) | Fixed Income-Taxable-Limited Duration | 11.90% |
PCM Fund ( PCM ) | Fixed Income-Taxable-Limited Duration | 11.35% |
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For further details see:
BLW: A Reasonable Choice For Today's Bond Market, But Watch Its NAV