Third Quarter 2017 CEF Review

Third Quarter 2017 Overview

The third quarter was another positive one for diversified closed-end fund (CEF) investors. The average CEF was up 2.28% during the quarter and is now up 11.24% year-to-date (YTD). Broadly speaking, CEFs continue to benefit from rising equity prices (both domestic and international), solid credit conditions (i.e., low default environment) and a steady long-term interest rate environment. Similar to prior quarters this year, it was another broad-based rally for the third quarter. Indeed, fixed-income CEFs were up on average 1.88% during the quarter and are now positive by 9.45% YTD. Equity CEFs were positive--on average 2.71% for the quarter and are now up 14.30% YTD. (Source: Morningstar. All data is share price total return.)

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Posted on Monday, October 23, 2017 @ 1:10 PM

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.