- Low expense ratio: The annual expense ratio of 0.44% is one of the lowest for a closed end fund.
- Low turnover: The ADX management does very little trading (low turnover ratio) which means that the "hidden" trading costs are also very low.
- Good long term performance: Since inception in 1979, the fund has averaged about 12% per year.
- High discount to NAV: ADX has been trading at a 14% discount to NAV which is at the higher end of its discount range. About 8% of the ADX portfolio is invested in PEO, which is another low expense closed end fund that trades at a discount of 12%. So on the PEO holding you actually get to buy it at a "double discount".
- Solid portfolio holdings: Its top stock holdings are: Schlumberger (NYSE:SLB), General Electric (NYSE:GE), Microsoft (NASDAQ:MSFT), Conoco Phillips (NYSE:COP) and Oracle (NASDAQ:ORCL).
Full Disclosure: I am long shares of ADX.