Global Hybrid Closed-End Funds Offer Diversification At Bargain Rates
Global hybrid closed-end funds offer a way to diversify portfolios through a single investment.
Costs among the 10 funds that currently fall into this category have fallen as the global economy has weakened, according to Cara Esser, a closed-end fund analyst at Morningstar.
Each of these closed-end funds pursues a different strategy, as some invest more heavily in U.S. securities while others tilt toward emerging markets.
Allocations among stocks and bonds also vary widely, along with leverage percentages and exposure to convertible securities. So it’s important for advisors and investors to carefully compare each of these factors to ensure a good match with client goals.
Esser recently listed details of each of these closed-end funds, and highlighted her two favorites, Calamos Global Total Return and First Trust/Aberdeen Emerging Opportunity Fund.