IDE: This High-Yielding Fund Is Better Than The Market Thinks

2025-01-27 14:43:33 ET

Summary

• The Voya Infrastructure, Industrials and Materials Fund offers high-yield exposure to three sectors with an impressive 11.32% yield, which is higher than many peers.
• Despite recent underperformance, the fund's high yield and diversified global portfolio may present an attractive entry point for income-focused investors.
• The fund's distribution is well covered, though it relies on unrealized capital gains, and its current valuation is slightly more expensive than its historical average.
• With no leverage and a focus on infrastructure, industrials and materials, the fund remains a compelling option for those seeking high income and sector-specific exposure.

The Voya Infrastructure, Industrials and Materials Fund ( IDE ) is a closed-end fund that provides a fairly unique way for investors to gain exposure to three high-yielding sectors of the economy and generate a higher level of income from them than would be provided by an index fund. We can easily see that these sectors have higher-than-average yields by looking at the yields of exchange-traded index funds that track them. Here are a few examples:

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