How can advisors help investors better understand their portfolio’s securities? How does the idea of "short-term pain for long-term gain" apply to the CEF space? CFA, Head of CEF/ETF Research - Wells Fargo Advisors shares insight.
There isn't really much in the way of "short term pain" in CEFs other than that they aren't that sexy. But I have a blend of CEF assets right now that are paying me 11.8% a year, boringly and reliably. That's sexy enough for me. Stick with the long term players (Eaton Vance, Pimco, Franklin Templeton) and do your homework and it's so much easier to sleep at night.
