The universe of closed-end funds (CEFs) attracts investors because of the high yields many pay. I have serious reservations about investing in CEFs.
I’ve been known to call the CEF world the “junkyard of Wall Street.” Closed-end funds can trade at discounts or premiums to their net asset value (NAV) or book value. The differences from NAV can be extreme.
Which brings us to an interesting way to invest in the CEF space.
This post originally appeared at Investors Alley.