2025-01-15 16:52:41 ET
Summary
- The Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund offers an 8.23% yield, higher than domestic equity indices and most fixed-income securities, making it attractive for income-focused investors.
- Despite its high yield, the fund's historical performance has been average, underperforming peers and major indices, which may deter some investors.
- The fund's equity-heavy allocation provides better inflation protection compared to fixed-income securities, aligning with the current inflationary environment and expanding money supply.
- The fund has been maintaining a high allocation to foreign equities, making it a respectable choice for anyone seeking international diversification.
- The fund is reasonably priced, fully covers its distribution, and has a competitive expense ratio, making it a viable option for income-seeking investors.
The Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund ( ETO ) is a closed-end fund that income-focused investors can purchase as a way of achieving a very high level of income without the need to reduce their equity exposure. This comes about because of the fact that the major domestic fixed-income indices currently have higher yields than domestic equity issues. We can see this by looking at the current yields of the equity indices and comparing them to the fixed-income security indices. This chart shows the yields of the major broad-market domestic equity indices:
Index/ETF | Current Yield |
S&P 500 Index ( SPY ) | 1.21% |
Dow Jones Industrial Average ( DIA ) | 1.61% |
Russell 2000 Index ( IWM ) | 1.15% |
NASDAQ 100 Index ( QQQ ) | 0.56% |
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For further details see:
ETO: This Attractively Priced Fund Is Fully Covering Its 8% Yield