Filed under: Investing
Closed-end funds aren't the best-known investments in the market, but they often come at discount prices compared to the value of their underlying holdings. Does that make closed-ends bargain opportunities?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at closed-end funds and whether discounted shares are bargains. Dan looks closely at Adams Express and Petroleum & Resources , two closed-ends that perennially trade at discounts to their net asset value. Dan notes that Adams Express gives investors cheap exposure to Apple and other lucrative dividend-paying stocks, while Petroleum & Resources focuses on energy investment ExxonMobil , Chevron , and other high-income stocks in the energy sector. Dan runs through the pros and cons of the discounts, noting that the best of all worlds would be to buy at a discount but sell at no discount.
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The article Are Closed-End Funds a Big Bargain? originally appeared on Fool.com.
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