FEI: Proposed ETF Conversion Offers Arbitrage Opportunity

Summary

  • First Trust MLP and Energy Income Fund Common is a top-performing MLP/midstream CEF.
  • A proposed ETF conversion offers arbitrage opportunity for FEI investors.
  • The merger is expected to eliminate the CEF discount and provide an opportunity for investors to exit at NAV.
  • Looking for a portfolio of ideas like this one? Members of CEF/ETF Income Laboratory get exclusive access to our subscriber-only portfolios. Learn More »

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FEI: A top-performing MLP/midstream CEF

First Trust MLP and Energy Income Fund Common (FEI) is a closed-end fund, or CEF, focusing on MLP/midstream companies. These are a popular type of investment among income investors because of their steady distributions, tax advantages, and ownership of essential income

At the CEF/ETF Income Laboratory, we manage closed-end fund (CEF) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.

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This article was written by

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Stanford Chemist is a scientific researcher by training. For the past decade he has been providing analysis and evidence-based ways of generating profitable investments with CEFs and ETFs. He leads the investing group CEF/ETF Income Laboratory.

Features of the service include: managed income portfolios (targeting safe and reliable ~8% yields) making use of high-yield opportunities in the CEF and ETF fund space. These are geared toward both active and passive investors of all experience levels. The vast majority of {CEF/ETF Income Laboratory} holdings are also monthly-payers, for faster compounding and steady income streams. Other features include 24/7 chat, and trade alerts.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FEI, FIF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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