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New type of mutual fund. Those containing a package of ETF or CEF
I am invested in River North Core Opportunity RNCOX. This fund is a package of Closed End Funds (CEF). I understand that some mutual funds are also doing the same with ETF. I would suspect that there would be somewhat of a lower tax cost ratio and increase diversity. What are some mutual funds that contain ETF's and what are some opinions on this type of investment? prinx
Here is a relative new fund that you might wish to study. It is Virtus Herzfeld (VHFAX). This fund invest mostly in closed end funds and keys on buying funds that are selling at a discount to their net asset value with a belief that there is a good possibility of the discount narrowing and perhaps even going to a premium at which the fund would be sold off or the position reduced.
And, a third fund by Viritus is its Allocator Premium Alpha Sector Fund (VAAAX) that consists of ETFs. It current allocation is 36% US Equity, 24% International Equity, 30% Fixed Income and 10% Alternatives. It adjusts its allocation form time-to-time but takes a more balanced approach as you can see form the above listed allocation.
Comments
Otherwise a number of mutual funds hold positions in various ETF's.
Here is a relative new fund that you might wish to study. It is Virtus Herzfeld (VHFAX). This fund invest mostly in closed end funds and keys on buying funds that are selling at a discount to their net asset value with a belief that there is a good possibility of the discount narrowing and perhaps even going to a premium at which the fund would be sold off or the position reduced.
https://www.virtus.com/vsitemanager/Upload/Docs/1083_Virtus_Herzfeld_Fund.pdf
Another fund by Virtus that keys on ETFs is its Alpha Sector Rotation Fund (PWBAX).
The Fact Sheet on this fund is linked below.
https://www.virtus.com/vsitemanager/Upload/Docs/1063_AlphaSector_Rotation.pdf
And, a third fund by Viritus is its Allocator Premium Alpha Sector Fund (VAAAX) that consists of ETFs. It current allocation is 36% US Equity, 24% International Equity, 30% Fixed Income and 10% Alternatives. It adjusts its allocation form time-to-time but takes a more balanced approach as you can see form the above listed allocation.
https://www.virtus.com/vsitemanager/Upload/Docs/1080_Allocator_Premium_AlphaSector.pdf
Hope this helps.
Skeeter