Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home

  Second Quarter 2016 CEF Review
Posted Under: CEFs

Following the solid first quarter performance for closed-end funds (CEFs) when the average CEF was positive by 2.73%, the positive momentum continued during the second quarter, with the average CEF up another 6.33%. Indeed, after grinding through a challenging 2015 (particularly the back half of the year), diversified CEF investors have been rewarded with very strong total returns year-to-date with the average CEF now up over 9% through 6/30/2016 (source: Morningstar. All data is share price total return data).

The positive gains were broad based during the quarter with equity CEFs up an average of 7.94%, taxable fixed income CEFs up 6.06% and municipal CEFs up 6.12%. While each category of the CEF marketplace has different factors which impact performance, broadly speaking, some of the factors which continue to benefit many CEFs include: higher equity prices (particularly U.S. equities), declining long-term rates and continued "Plow Horse" (as our Economics team phrases it) economic growth in the U.S. economy which helps to create a positive backdrop for many credit sensitive CEFs. Lastly, high distributions and attractive discounts to net asset values (NAVs), particularly for equity and credit sensitive categories (more on that below,) also helped to attract buyers to the secondary market during the quarter.

Click here to continue reading.

Posted on Wednesday, July 20, 2016 @ 10:36 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Dave McGarel
CIO, COO | Bio
  1. Market Minute
Bill Housey
Senior Portfolio Manager | Bio
  1. Income Insights
Ryan Issakainen
ETF Strategist | Bio
  1. ETF Data Watch
  2. ETF Observations
  3. Inside First Trust ETFs
  4. First Trust ROI Podcast
Jeff Margolin
Closed-End Fund Analyst | Bio
  1. Closed-End Fund Quarterly Commentary
Client Resource Kits
  1. Alternatives
  2. Equity
  3. Fixed-Income
  4. Markets In Perspective
  5. Investment Themes
Other Newsletters
  1. Alternatives Update
  2. Housing Tracker
  3. Commercial Real Estate Tracker
  4. Equity Newsletter
  5. Weekly Market Commentary
  6. Weekly Market Watch
Subscribe To Receive Email

Three-Year Anniversary for the Largest Actively Managed High Yield ETF
First Quater 2016 CEF Review
Are Expense Ratios a Dependable Predictor of Returns for Large Cap US Equity ETFs?
Staying the Course with FVD
Robust Growth for Municipal Bond ETFs in 2015
The Return of Volatility and the Case for Earnings Quality
Third Quater 2015 CEF Review
Diversify Your Short Duration Income Portfolio
Questions to Ask Your "Smart Beta" ETF
Second Quater 2015 CEF Review
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.