This month's top 10 closed-end funds (CEFs) offer an average yield of 9.5% and strong long-term performance across diverse asset classes. For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone.
There's a 7.3%-paying AI fund out there that looks like the perfect buy—7.3% yield, growing payout and special dividends. Yet, if you hold this one, I urge you to sell yesterday.
Virtus Artificial Intelligence & Technology Opportunities Fund pays a monthly dividend, with a current dividend yield of about 7.5%. AIO's has a balanced and diverse portfolio of stocks and bonds with an emphasis on companies building out, or benefitting from, artificial intelligence (AI). AIO's balanced, AI focused approach has outperformed the S&P 500 over the 1, 3 and 5-year periods.
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The Virtus Artificial Intelligence & Technology Opportunities Fund is a differentiated investment vehicle designed to offer investors access to the burgeoning field of artificial intelligence and technology. As a diversified, closed-ended management investment company, its primary mission is to cultivate both a stable income stream and capital growth. This ambition is rooted in the utilization of what is considered one of the most promising long-term secular growth opportunities present in the market today. Operated by Virtus Investment Advisers, Inc., with Voya Investment Management Co. LLC serving as the investment subadvisor, the Fund is uniquely positioned to leverage extensive expertise in identifying and capitalizing on technological innovations and trends.
The Fund's investment approach is characterized by a focused yet diversified strategy, encompassing a wide array of technologies and sectors that are poised to benefit from the disruptive potential of artificial intelligence and other emerging technologies. The following outlines the key aspects of its product and service offerings: