The Gabelli Healthcare & WellnessRX fund (GRX), $10.67 market price (real time), $12.06 NAV, -11.5% discount, 4.9% current market yield, has been hugely disappointing to me, not in its NAV performance but in a market price performance that just has no interest. Part of the blame I put on Gabelli for keeping GRX's NAV yield ridiculously low even while the fund has the best long term NAV performance of any Gabelli CEF.
Still, I don't understand how anyone can be selling a fund at $10.67 when its NAV is over $12 and it has a market yield twice that of its benchmark indicies, the SPDR Healthcare Select ETF (XLV) and the SPDR Consumer Staples ETF (XLP). And its because of that split into two defensive sectors that makes GRX a survivor no matter where the markets go from here. When healthcare and biotech were getting crushed in 2016, GRX's NAV was down only -3.5% when many healthcare CEFs and ETFs were down double digits. This year, as healthcare has recovered, consumer staples have struggled to the point where quite a number of GRX's top holdings are still near 52-week lows. Still, GRX's NAV is up 13.4 YTD, handily beating most equity CEFs that have seen their discounts evaporate.
I continue to be a believer in GRX and I continue to add to an already large holding. Fortunately, just about every other CEF I own has seen their valuation skyrocket so I've been able to gradually shift more assets to GRX. I think you would be wise to do that too, particularly if the markets turn more defensive and investors look for survivors in an over-priced market.
Disclosure: I am/we are long GRX, XLP.