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What is the NAV of CEF?

What is the NAV of CEF?


Share Price NAV
Current $17.65 $18.50
52 Wk Avg $18.30 $18.84
52 Wk High $20.44 $20.85
52 Wk Low $16.75 $17.40

Do closed-end funds trade NAV?

Closed-end fund shares may frequently trade at a discount or premium to their net asset value (NAV). Closed-end fund historical distribution sources have included net investment income, realized gains, and return of capital.

How do you find the NAV of a closed-end fund?

CEFs have an underlying portfolio of securities. From this portfolio, a net asset value (NAV) can be derived [NAV = (assets − liabilities) ÷ shares outstanding].

Is there an ETF of closed-end funds?

A common misunderstanding is that a closed-end fund (CEF) is a traditional mutual fund or an exchange-traded fund (ETF). A closed-end fund is not a traditional mutual fund that is closed to new investors. And even though CEF shares trade on an exchange, they are not exchange-traded funds (ETFs).

Why do closed-end funds trade below NAV?

The fundamentals of supply and demand will adjust the trading price of a mutual fund compared to its NAV. If the fund is in high demand and low supply, the market price will typically exceed the NAV. If there is low demand and much supply, the market price will usually be lower than the NAV.

Why do closed-end funds trade at discount to NAV?

Because closed-end funds trade on a public exchange, the price of the units will be determined by the market. As such, at any point in time the price may trade at either a premium or discount to the stated NAV. Over the longer term, the share price and the NAV should converge.

When should I buy a CEF?

Pricing. The most attractive time to purchase a closed-end fund is when its discount is greater than normal. Investing in a closed-end fund that is selling at a premium is risky because it means the investors are paying more than the underlying assets are worth. Most closed-end funds are owned by individual investors.

Is discount to NAV a good thing?

A discount to NAV surfaces when the market trading price is lower than the most recent NAV. A discount often indicates the market is generally bearish on the investments in the fund and the fund company’s potential to generate returns.

What is the difference between an ETF and a CEF?

At a fundamental level, they operate very similarly to ETFs, but there are some structural differences. CEFs issue a fixed number of shares, so the market value of those shares can fluctuate above or below the underlying NAV, known as the discount or premium.

Is CEFS a good investment right now?

From a risk/return standpoint, CEFS looks like the best bet of the group (looking historically at least). It’s got the best total return, highest Sharpe ratio, lowest beta and lowest downside capture ratio. It’s also the highest yielder of the group at 9% right now.

What is Saba closed-end funds ETF (CEFS)?

The Saba Closed-End Funds ETF (Bats: CEFS) is an actively-managed Exchange Traded Fund that seeks to generate high income by investing in closed-end funds trading at a discount to net asset value, and hedging the portfolio’s exposure to rising interest rates.

Is fcef a good ETF to buy?

If you consider just the pure numbers, FCEF is the smallest ETF listed with just $37 million in AUM, so trading costs could potentially be an issue. It’s also the lowest yielder and has a relatively small discount of 3-4% below NAV.