- ETJ is a closed-end fund that uses net credit protective collars and stock picking to generate income.
- It is trading at an unprecedented over 10% premium and has historically fallen into deep discounts during corrections.
- This makes it vulnerable to a large drawdown during a market correction.
- ETJ’s expense ratio is also too high for what it does. Its stock picks are easily replicable through their website and the options collar is not worth 1.11% in fees.
- Currently, ETJ is not a good investment from a value perspective.
For further details see:
ETJ Is Just Too Expensive