GUG: This Looks More Like A Bond Fund Than A Multi-Asset Fund

2025-08-25 17:10:59 ET

The Guggenheim Active Allocation Fund ( GUG ) is a closed-end fund, or CEF, that offers an intriguing proposition to investors who are in need of income. The fund invests in a combination of both equities and bonds in an attempt to provide its investors with a very high level of current income, along with wealth preservation. It is something of an intriguing concept, but unfortunately, this fund has not historically done a particularly good job of preserving its investors’ capital. The fund was first launched on November 23, 2021, in the final months of the COVID-19 money-printing bonanza, and right around the time that the bond market began pricing for interest rate cuts. This chart shows the price level of the Bloomberg U.S. Aggregate Bond Index ( AGG ) from November 1, 2021, through February 28, 2022:

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