By Taylor Wilman, InvestMacro.com
Closed-end funds are kind of the forgotten about section of the financial markets. Despite being the oldest funds to appear on the scene in the 1890’s – many years prior the to the more popular mutual fund – closed-end funds (CEFs) are not well known among investors nor well covered by financial media.
However, those investors who do ply their trade in CEFs know there are distinct benefits to investing in these funds. A high yield or distribution is usually the norm for CEFs which attracts income investors. There is also an interesting fact that prices of closed-end funds often trade at a discount to their NAV (net asset value) price which can entice value investors looking to buy an undervalued asset.
There are many pros and cons to soak up before diving into closed-end funds, so I’ve put together a list of really worthwhile websites that I have found regarding this industry.
Here is my list of CEF resources:
1. Closed-End Fund Association
Site Type: News, Analysis, Tools
CEFA stands for Closed-End Fund Association which is the national trade association for this niche industry. The website contains many features including CEF article content and analysis as well as podcasts that dive into different aspects of the CEF space. There are many educational aspects to the site in terms of tutorials and videos, plenty of fund screening tools and a portfolio tracker. Beginners and pros alike can be satisfied with the offerings of this website.
Visit the site here: Cefa.com
2. CEFConnect by Nuveen
Site Type: Screener, Portfolios, Funds Data
CEFConnect is a very popular website that is run by Nuveen closed-end funds which is a company that manages assets and sponsors many CEFs. This website’s strength is in its tracking tools and its depth of information of the CEF space. There is a fund screener that allows you to target funds by numerous characteristics while there is also a great portfolio feature that allows an investor to create collections of the funds. Each fund in their database is thoroughly covered in their corresponding pages with typical characteristics including distributions, z-scores, fund holdings and more. This a site that any prospective CEF investor should consult regularly.
Visit the site here: Cefconnect.com
3. Closed-End Fund Advisors
Site Type: Screener, Funds Data, Custom Indexes
Cefdata.com is the home of Closed-End Fund Advisors data insights and product offerings that are focused on just CEFs. There are many great free options on this site including highly detailed pages for just about all of the individual funds in the CEF industry. Their CEF/BDC Indexes page provides updates and collections of CEF groupings in the major industry sectors while the CEF/BDC Indexes Performance page shows the performance of these groupings over many time frames. The site also has a CEF fund screener to round out a very thorough and impactful set of features in the CEF space.
Visit the site here: Cefdata.com
Site Type: News, Analysis, Social Network
Seeking Alpha (SA) is an outstanding resource on the topic of closed-end funds because many active CEF investors write about their strategies and portfolios on this site. At this time, you really cannot find this kind of content anywhere else. SA is a community or social network type of platform with thousands of financial writers analyzing a wide range of instruments. If you are on the hunt for CEF ideas, strategies or funds to invest in, Seeking Alpha likely can suit your needs.
Visit the site here: Seekingalpha.com
About the Author:
Taylor Wilman is an active investor and financial market writer