Closed-end Fund Review - Second Quarter 2021
After a very strong start to the year when the average closed-end fund (CEF) gained 6.42% during the first quarter (, many CEFs continued the positive momentum in the second quarter with the average CEF rising 7.83%. It was a very broad rally with equity CEFs increasing 10.64%, fixed-income CEFs rising 6.18%, taxable fixed-income CEFs gaining 6.10% and municipal CEFs increasing 6.29%. (Source: Morningstar. All performance is based on share price total return). Equity CEFs benefitted from the 8.55% increase in the S&P 500 Index and the 5.48% rise in the MSCI All-Country World Ex US Index. Fixed-income CEFs benefitted from the strength in several key fixed-income markets. The ICE BofA High-Yield Bond Index gained 2.77% during the second quarter, while the S&P/LSTA Leveraged Loan Index rose 1.47% for the quarter, the ICE BofA Preferreds Index gained 3.06%, while the ICE BofA 7 12 Yr. Municipal Index added 1.35%. (Source: Bloomberg).

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Posted on Thursday, July 15, 2021 @ 10:06 AM

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.