Hi Allen, They tend to be active funds with high expense ratio, some of them distribute not just earned dividends from stocks but directly from the assets of the fund, and you have one more variable to worry about— the premium or discount from NAV.
Some time ago I had a CEF ZTR a Zweig Fund until I learned that a good part of their distributions came from the fund’s value. It’s like you give them $10,000 and they pay you from that amount a percentage each month or so.
I think the simple index ETFs are the best for AIM, at least for the core part of your portfolio, even though you have to be patient with them.
Adam
