Closed-end funds, a type of publicly traded investment fund, are offering enhanced yields for income-seeking investors, according to DoubleLine CEO Jeffrey Gundlach. These funds trade throughout the day, have a limited number of shares, and often use leverage to boost returns. Gundlach highlights their advantages in a moderate risk environment, with discounts and the potential for double-digit yields available without significant credit risk.
Amidst a volatile real estate market, Invesco Mortgage Capital (IVR) offers a compelling opportunity for income investors with its high distribution yield of 18.5%. Despite its challenging recent history, IVR is positioned to benefit from stabilizing interest rates and an improving outlook for the mortgage REIT sector. With Q1 earnings expected to beat estimates and a long-term strategy that aligns with expectations of interest rate cuts, IVR presents an attractive entry point below $9.
Many high-income earners have a disconnect from the reality of the average American. They often live in an unimaginable ivory tower, with little understanding of the everyday struggles that most people face. However, the average high-income earner, who earns $500,000 or more annually, typically has about $2.68-$3 million saved towards retirement. This means that the vast majority of them have about 5 times more in their retirement account than the average American, who retires with an average savings of $537,000.
The DoubleLine Income Solutions Fund is a closed-end fund that seeks to provide investors with a high level of income. The fund primarily invests in below-investment-grade debt securities and emerging markets. While the fund has a reasonable leverage ratio compared to its peers, its low transparency and lack of recent financial information are concerns. The fund has a moderate 10.90% yield, but it has failed to cover its distributions over the past two years. Overall, the fund’s positioning is reasonable, but caution is advised due to the lack of transparency and the fund’s recent net asset value destruction.
Analyst Steven Fiorillo discusses the recent market volatility and provides insights on the upcoming earnings season, geopolitical tensions, and investment opportunities. Fiorillo focuses on the NEOS Nasdaq-100 High Income ETF (QQQI) and explains its unique strategy of combining exposure to big tech companies with income generation. He delves into the risks and mechanics of QQQI, emphasizing that it is not a typical ETF. Fiorillo explains why he is adding to his position in QQQI and believes it fits well in his income-producing portfolio. He shares his outlook on the market and the Fed’s rate cut projections. Overall, the analyst expresses optimism about the long-term prospects of the market and highlights the potential of QQQI for generating both income and capital appreciation.
Two popular, high-yield monthly pay ETFs, **JPMorgan Equity Premium Income ETF (JEPI)** and **JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)** have become increasingly popular with income investors. In this article, we compare them side by side to determine which one would be a better addition to a diversified high-yield portfolio.
