2 Defensive CEFs Beating The Market Pullback, 5% Yields, Selling At Discounts, One Is Tax Free

Looking for defense against market pullbacks? These two closed end funds have both outperformed the market since 2/20/20, when the latest pullback began. They've also outperformed the market in the previous two pullbacks. The yields are 5.23% taxable and 4.60% tax free. The 4.60% tax-free yield equals a 5.2% to 7%-plus taxable yield, depending upon your tax bracket.

The BlackRock Taxable Muni Bond Trust (BBN) and the Nuveen AMT-Free Municipal Credit Income Fund (NVG) have been two oases of calm during the latest market tempest. Over the past week, which witnessed very few dividend paying gainers, BBN has risen .55%, and NVG is up .65%, vs. a -9.40% decline for the S&P and a -6.30% fall for the Dow 30. BBN and NVG also both outperformed both indexes during the May '19 pullback and the big Q4 '18 pullback, when the S&P lost more than -20%.

Source: Seeking Alpha

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