- The stock market is currently greatly overvalued based on multiple metrics and this results in negative projected total returns over the next eight years.
- Taking a position in ETJ is a good way for an investor to protect themselves against this risk and generate a much higher yield than cash.
- The fund uses an options hedging strategy to protect against the downside risks of the market.
- The fund has generated more in NII and unrealized capital gains to cover its 9.17% distribution over an extended period of time.
- The fund trades at a very small premium but it might be worth it for the safety that the fund offers.
For further details see:
ETJ: The Market Is Looking Overvalued, Protect Yourself With This High-Yielding Fund