mavericks

Index ETFs Have the Edge Over Actively Managed CEFs

This is like comparing apples with oranges. Are you citing NAV performance comparing CEF's with ETF's or market price performance? Most of the CEF's I follow have FAR outperformed the market since the November lows. But then, I only follow CEF's with high yields...most of which use options or leverage to achieve their over-sized payouts. I agree that you're better off buying ETF's if you're looking international.

I have found CEF's to be the canary in the coal mine since they can make moves before the market does. I also like CEF's because you really compete against mostly small investors who jump on the band wagon when the discounts/premiums get too wide. Many CEF's have gone from 20%+ discounts and 20%+ yields to PREMIUMS in only 3 months!! Either CEF's are in a bubble right now or we are in for a major up move in the market. I personally, have shifted more to ETF's right now but its only a matter of time before CEF's go to big discounts again!!