Want High Yield? Check Out These 4 Closed-End Funds (CEFs)

CEFs trade throughout the day on exchanges just like ETFs and represent baskets of stocks, bonds or other holdings. But the kicker here is that unlike ETFs, which have a creation/redemption mechanism, closed-end funds issue a set number of shares when launched. The laws of supply and demand dictate what their value is. Essentially, what this means is you can buy $1 worth of stocks for, say, 95 or 90 cents. That’s built-in value.

CEFs also have the ability to use leverage to bolster distributions, which again makes them a great place to find big yields. And as an added bonus, many closed-end funds pay out their distributions on a monthly basis. If you’re looking to add some extra oomph to your portfolio, you might want to consider one or more of these CEFs: Voya Prime Rate Trust (PPR), Nuveen Municipal Value Fund (NUV), Credit Suisse High Yield Bond Fund (DHY) and John Hancock Tax Advantaged Dividend Income Fund (HTD).

Source: InvestorPlace

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