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- Nov 27, 2014
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- 9,214
I’d never really thought of or read about close end funds. I was reading the following article and wanted to see what some thoughts were from this group:
https://www.nasdaq.com/article/forget-faang-top-10-big-yields-lower-risk-cm951241
The article talks about ten options but the one that caught my attention was #9 - ADX. Apparently the fund is committed to a distribution of 6%. I didn’t know products/funds like this existed. The article indicates that ADX is very stable, been around since 1929, carries little debt and has an expense ratio just over 1/2 percent, which is less than many of my Fido funds.
Is something like this a good option if income is the goal? Similar to bonds with a higher yield.
There were also some other funds/ideas that seemed interesting. Any comments on those would be welcome. Basically, I like the idea of having someone working for me to generate income if I can get it at a good price (expense ratio). The closest thing to this that Fido offered was a bond fund that they felt could distribute 5% annually. But that didn’t make much sense to me since they said the underlying return was around 3% so they weren’t planning on going with riskier debt to cover the distribution.
https://www.nasdaq.com/article/forget-faang-top-10-big-yields-lower-risk-cm951241
The article talks about ten options but the one that caught my attention was #9 - ADX. Apparently the fund is committed to a distribution of 6%. I didn’t know products/funds like this existed. The article indicates that ADX is very stable, been around since 1929, carries little debt and has an expense ratio just over 1/2 percent, which is less than many of my Fido funds.
Is something like this a good option if income is the goal? Similar to bonds with a higher yield.
There were also some other funds/ideas that seemed interesting. Any comments on those would be welcome. Basically, I like the idea of having someone working for me to generate income if I can get it at a good price (expense ratio). The closest thing to this that Fido offered was a bond fund that they felt could distribute 5% annually. But that didn’t make much sense to me since they said the underlying return was around 3% so they weren’t planning on going with riskier debt to cover the distribution.
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