- The Cohen & Steers Infrastructure Fund (UTF) is a popular choice for income investors through investment in securities issued by infrastructure companies.
- The fund provides an attractive ~6.7% of distribution rate, and potential growth opportunities with the Biden’s administration’s undergoing bill to invest in American infrastructure.
- However, the fund has also suffered large volatility during market turmoil, partially due to its use of leverage as a close-end fund.
- This article shows that by adding some diversification, such volatility risks can be hedged away substantially.
For further details see:
UTF: Opportunities, Risk Assessment, And Hedging