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Thesis
2024 will be remembered as the year of large capitalization equities, with a fulminant performance so far for the S&P 500 index:
The S&P 500 is the clear outperformer this year, beating even the Nasdaq. A
ETV: Still Some Gas Left In The Tank, 8% Yield
Summary
- 2024 is the year of large-cap equities, with the S&P 500 outperforming other indices, making ETV a strong investment choice.
- ETV, a buy-write CEF, mirrors the S&P 500 but offers monthly distributions and currently trades at a -5% discount to NAV.
- Elevated VIX levels are expected to persist, driving high premiums for ETV and potentially closing the existing NAV discount by year-end.
- ETV's 8.6% fully covered monthly distribution, coupled with its strategy and market conditions, makes it a better choice than an outright S&P 500 position.
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ETV 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.
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