Revealed: My Safe Fund-Picking Strategy for 7.5%+ Payouts

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By Michael Foster

HereaEURtms something few people realize about closed-end funds (CEFs) : sometimes, when it comes to these funds, matching the market means youaEURtmre actually beating the market.

Let me show you what I mean using the AGIC Equity and Convertible Income Fund ( NIE ) , a CEF I recommended earlier this year. NIE has been meeting the S&P 500aEURtms performance, though most people donaEURtmt know it.

And by meeting the S&P but giving investors a 7.5% dividend yield, itaEURtms helped income investors actually beat the market if theyaEURtmd chosen a aEURoedumbaEUR index fund like the SPDR S&P 500 ETF ( SPY ) instead.

First, letaEURtms address the hidden returns.

If you fire up Yahoo Finance or Google Finance and look up NIE, youaEURtmll see something like this:

A Crummy Return on the SurfaceaEUR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Options
Referenced Symbols: NIE , SPY

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