Some may say CEF quality is in the eye of the beholder but they would be wrong.
A fund that underperforms a straight-up dumb passive ETF (XLU) over various time horizons despite being leveraged in an environment of strong stock returns is not a quality fund
A fund that destroys shareholder value by repeated dilutive rights offerings is not a quality fund
A fund that has less income than XLU, despite having the word “income” in its name is not a quality fund.
Reaves Utility Income Fund (UTG), please try harder.
Thanks for reading.
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