Thanks for your feedback. Some people think anything over 5% is yield chasing. I think there are opportunities around 8-10% that offer a decent risk/return if you diversify sufficiently. I won't be chasing those giant yields that are tied to declining NAVs though.
I really appreciate your feedback because that's one of my goals. Its easy to make investing boring, but it doesn't need to be :) I'll try to keep focusing on the useful info and leaving out the fluff.
Thank you for bringing these to our attention. I hadn't really heard of these before, so will diver deeper into them. Have fun in Bangkok, there are no shortage of things to do!
Ask and I shall receive! Great video! Bought this 3 months ago and I'm up 13% and dripping. I plan on joining you in retirement in October, when I will live off my income and option premiums. Cheers!
Great video! Haven't heard of these. It's nice that there is a lot of diversification within the funds. A lot of the funds that that just hold CLOs tend to see huge nav decline so nice that these have them but not the whole portfolio and look to be good performers. Appreciate you researching and sharing.
Everything went down too much in 2020! I agree though...2020 was a terrible year for ARDC. Total return was 3% vs 18% for the S&P 500 because ARDC's price fell more than SPY and recovered less. The dividends didn't fall much but they weren't enough to compensate for the price decline. From an income perspective, it wasn't too bad, but the total return during that period (and some other periods) was bad.
Would you consider ARDC a good option for someone who has 10 years before FIRE? Or focus more into growth CEF like BST? Bonds are probably more safe pick?
I can't give advice on what other people should buy as it depends on so many factors....including the composition of their existing portfolio, tax situation, risk aversion, etc. In general terms, ARDC is doing well now because of high interest rates. That may change if rates fall, especially if they fall quickly. So I wouldn't describe it as a long term hold. BST is good for long term exposure to tech. It's volatile but has solid long term returns.
Always good to have alternatives. Thanks for being one of the first to watch a new video, and for commenting regularly. Glad you enjoyed the episode :)
I recently came across an interview with Steven Bavaria where he talked about his book "The Income Factory" that was published in 2020. Are you familiar with this book or Steven? I think it would be in your wheelhouse. Also he has done a bunch of interviews with other RUclips financial personalities. I would love to hear you talk with him on your channel.
Yes, I've been following him since before I retired and generally like his concepts. He's on my list of people to contact over the next 1-2 months for interview requests. I'd love to chat with him!
Thank you for doing this kind of content. While there are great "financial channels" and "dividend investments" but this is one of the few that concentrates on income producting investments. For those of us that are fast approaching retirement I get enough of the "if you will invest juat a little on your 20s you'll be a millionaire". Or the typical dividend companies ... KO, JNJ, PEP, MCD....etc. 2-3% yields... that will probably be closer to 6-8% in 7-10 years. Well, i dont need higger yields in a decade or so. I need the higher returns now. Yeah, i get that. I have nowhere near that time horizon. So i need solid info. on quality investments for the next decade or so.
Thanks for your feedback. Those low yielding dividend growth stocks are fine for investors in the accumulation phase but as retirement kicks in, consistent income is more important than trying to have the largest portfolio at the end of our lives.
Hi, there are many CLO funds and I haven't studied OCLO. A quick look and I noticed that it's distributions have fallen recently, so I'd want to understand why.
Great video. The 2.58% seems too high (Fidelity says it's 2.73%). Are there any other funds you know of which are similar to this but don't have such high fees? I like how they rebalance depending on what interest rates are doing. Hopefully there's another one out there that does the same without such high expense. Thank you.
I'm assuming you're asking about PFFA. They're total expense ratio is 2.52% but most of that is interest. The management fee is 0.80% which I think is reasonable for managing 200 preferred stocks. I don't know of another fund with the same (or better performance) in the preferred asset class that charges less than 0.80%. As for the rest of the expense....ie the interest...that's a cost of doing business in a leveraged fund. If you invest in real estate or any other leveraged asset, you will be paying whatever the interest expense is.
@@armchairincomechannel sorry but no, I wasn't referring to PFFA, I was talking about ARDC. At 5:18 of this video you said "The management fees are high, at 2.58%..."
Thanks. I ALSO BOUGHT BXSL A COUPLE OF MONTHS AGO. It’s been doing well. Can you give your opinions on how BDCs will do in 2024/2025? Lower interest rate may not be good but it benefits the companies in BDCs portfolio. So I feel it’s not bad especially the rate 10:41 won’t come down too fast nor too much.
Thanks for sharing. BXSL has been doing well. I have no idea what any stock or sector will do in the future! With that disclaimer out of the way, I was a bit overweight in BDCs last year because the opportunity was so good when interest rates were climbing. I intend to remain in the sector for the long term because I think they can do well in most environments. I think the special dividends will fade away but the good BDCs (there are a few duds) will continue to pay consistent regular dividends. Lower interest rates will mean a smaller profit margin, but more loan volume and/or the opportunity to negotiate better loan terms. It will also increase the returns on their equity investments. I'll keep trying to get Michael from Putnam (PBDC) on my channel because I want to do an in depth interview with an expert on this topic.
So in your opinion, is dividend reinvesting a good idea? I’m doing it for jepi/q, but not for bxsl. bc I feel it’s volatile, maybe to buy at my own pace is better?
Thanks for the suggestion. I generally don't spend much time reviewing and investing in brand new funds because there's more downside (no history) than upside. I made an exception for QQQI because its the same as SPYI, but with a different index. I'll keep an eye on those Roundhill funds and hopefully they'll deliver some decent results.
Great video thank you. Change of subject - you reviewed FEPI a few months ago - its still doing very well and holding its own almost 6 months - 25%+ and increasing price - are you still considering this as a possible investment - and increasing your ‘one share’?
Thanks for your feedback. I have over 30 stocks and funds. Working on a format to share them in the coming months. Larger positions include SPYI, QQQI, SVOL, PBDC, PFFA.
I just found your channel and I love your videos. I switched to this same strategy just after COVID. I was wondering if you use margin to purchase more share to accelerate income or do you rely on reinvesting a portion of your income to keep growing income?
Thanks for your feedback. I don't use margin, I reinvest a portion of my distributions. Prior to retirement I used leverage for real estate investing, but if something went wrong, I had income from work to fix the problem. Now that I'm retired, my tolerance for risk is lower so I don't have any debt. Some of the funds use leverage as part of their strategy and that's enough risk for my taste.
@@armchairincomechannelSo 15% including expenses ratios and 10% excluding the expenses. I wonder why most CEFs' expenses ratios are so high. Does it make sense to have low expenses ratios to attract more money? They are not safe either since they also use leverage.
Half the 5% is interest, so 2.5%. Still high....but not 5% high. I don't count interest in the same category as management fees. Leverage can be safe or dangerous, depends how its used. Expense ratios also vary based on the size of the fund (a $30B fund doesn't need to charge a high percentage to make a lot of money) and the amount of resources needed to manage the fund...some are more work than others. CEFs tend to be smaller and more specialized so they charge higher fees to generate the same dollar amount of management income.
Nice Video and Funds I can buy in Germany. What do you think about CSQ? CSQ also looks like a solid dividend payer with around 8% Dividend. (7.7% at the moment).
I'm not familiar with CSQ. The dividends were cut in half following the GFC but aside from that, it has a solid history of consistent and increasing dividends, and the total return has almost kept up with the S&P 500 which is difficult for an income fund. I'll add it to my list of funds to research further. Thanks for the suggestion.
The 5% includes interest expense. However, 2.58% is a management fee which is quite high. If I can find the same features and returns for a lower fee I'll switch :)
But the income stream from ARDC is not consistent and has also lost ground to inflation. You literally show @0:10 the problem with the dividend stream while defending it. Not sure about the primary argument that you opened with. Well that and since it came out in 2012 the price is down almost 50% (inflation adjusted) or 30% if you ignore inflation. If you had thus fund over the last 12 years your purchasing power is down 50% and your nut is 30% smaller (or 50% if you want to adjust for inflation). Even if one was in the accumulation phase still and was reinvesting the dividends it only compounded at 5.5% per year vs 8.68% for the Vanguard Balanced index or 12.75% for SCHD or 14.1% for the SP500. If you were taking income, again the income stream from this fund is a loser with or without considering inflation. And if you started with SCHD or ARDC at the same time, end 2012, by the time you get to 2020 SCHD is already paying out more in absolute dollars than the initial investment in ARDC would. By the end of 2023 SCHD was paying out 37% more cash. I would say the only place that this, or others like it have, is as a bridge the gap investment for your first few years of retirement to bring your income up while still leaving the bulk in investments with a history of increasing income over time. Not saying SCHD as there are many individual stocks as well I only used it for an easy example. But I could have picked any group of dividend aristocrats and gotten the same rising stream of income over time. Even then though I would gradually sell it off and buy into income stream growers and eventually have a $0 position in things like this. Look at that dividend drop that started 2020. Let's pretend you started investing there so you had a new baseline. By the time you get to end last month there has been an erosion of the dollar of 16.7% which means that your income stream this year is the same as in 2020 i.e., you got went nowhere. Share price since jan 2020 is also down around $1.12 per share or 7.3% and far worse if you adjust for inflation. I get diversifying away from stocks but why pick something that is going to be a loser from a price appreciation and income side. I love your content but this one...seems like more thought should have gone into it.
Thank you for your detailed feedback. I agree with most of what you said but I think we're looking at different goal posts. If I had to pick one fund, I'd pick SCHD over ARDC too. It's more diversified and delivers more growth and consistent income. I mentioned in the video that there were periods when ARDC performed poorly. It's not a fund that I'd necessarily hold forever. Over the past 12 months, ARDC has delivered total returns double that of SCHD, so its not as though SCHD is always the better investment. My goal with SCHD is simply to add some exposure to the credit markets mentioned, rather than tying all returns directly to the S&P or NASDAQ. I understand that having that exposure may not improve my total return, but I want my income sources diversified. If there's another fund that gives me exposure to corporate credit and delivers better returns than ARDC, I'm open to it...especially if the management fees are lower :)
I’ve never said anything against Pimco! I’m a fan of PDI in particular. These videos take a while to make so I haven’t had time to cover every fund I’d like to. PDI invests in mortgage backed services, which is a different asset class.
Yes, I'm still looking into convertibles. It's an interesting asset class. Check out ACV and compare them for total returns. Arrived recently in Vietnam, thanks for the good wishes Krup.
I agree, ARDC requires some timing to deliver decent returns. There were periods when interest rates were close to zero and the fund didn't produce much income. I like RNP too (there's a video dedicated to it on my channel) but it's focused on REITs and Preferreds...different sectors. GOF has an excellent history of delivering high yield but generally trades at a huge premium to NAV so you have to be comfortable with the risk of the NAV premium shrinking. If the premium remains it will continue to do do well.
Thanks for sharing your thoughts. Total Return for ARDC is up 37% for the past year versus AGGH. If you think that’s about to reverse based on tightening credit spreads then that’s something to consider. AGGH is a complicated fund and the holdings keep changing. I’ll keep an eye on it.
It's the highest fee I've seen for a while. If I can find exposure to the same 4 credit markets and the same (or better) returns for a lower fee, I'll happily trade to a different fund.
➡ Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"):
armchairincome.link/snow
Do you provide your current portfolio holdings?
Great video. This is not a yield-chasing channel, rather a one focused on finding quality income-producing securities. Thank you!
Thanks for your feedback. Some people think anything over 5% is yield chasing. I think there are opportunities around 8-10% that offer a decent risk/return if you diversify sufficiently. I won't be chasing those giant yields that are tied to declining NAVs though.
Love the pace of your videos. This isn’t a fund I’m interested in, but you always make it interesting
I really appreciate your feedback because that's one of my goals. Its easy to make investing boring, but it doesn't need to be :) I'll try to keep focusing on the useful info and leaving out the fluff.
Great video mate! I understood about 5% of it! I have a lot of research to do! Haha. Cheers, Leigh from the restaurant in Danang!
Hi Leigh. A lot of opportunities available for in investing in US stocks and funds! Great to meet you in Danang and enjoy your travels.
Thank you for bringing these to our attention. I hadn't really heard of these before, so will diver deeper into them. Have fun in Bangkok, there are no shortage of things to do!
Thanks! Bangkok is one of the great cities of the world. I've been here many times but feel like I'm only scratching the surface.
Ask and I shall receive! Great video! Bought this 3 months ago and I'm up 13% and dripping. I plan on joining you in retirement in October, when I will live off my income and option premiums. Cheers!
Nice timing and congratulations on your looming retirement. It's a wonderful feeling!
Great content, really appreciate your RUclips channel. Thanks and well done.
My pleasure! Thanks for being one of the first to watch it :)
As ALWAYS.......very informative.......I appreciate your effort in delivering first class contents
Thanks! I appreciate your regular viewing and feedback.
@@armchairincomechannel Anytime 😊
Thanks for the info. Enjoy and be safe on your trip.
Thanks! More travel to come. Just received my new passport (old one was full ).
Great video! Haven't heard of these. It's nice that there is a lot of diversification within the funds. A lot of the funds that that just hold CLOs tend to see huge nav decline so nice that these have them but not the whole portfolio and look to be good performers. Appreciate you researching and sharing.
Glad it was helpful!
Sold! I like the idea of diversification away from SPY and NASDAU. Will pick up a starting position Monday.
SPY and QQQ are wonderful, but I don't want to bet everything on them :)
ARDC went down too much in 2020. That is a big concern
Everything went down too much in 2020! I agree though...2020 was a terrible year for ARDC. Total return was 3% vs 18% for the S&P 500 because ARDC's price fell more than SPY and recovered less. The dividends didn't fall much but they weren't enough to compensate for the price decline. From an income perspective, it wasn't too bad, but the total return during that period (and some other periods) was bad.
Owned AIF and AFT the past 3 months, great return.
They've had a nice run recently!
Would you consider ARDC a good option for someone who has 10 years before FIRE? Or focus more into growth CEF like BST? Bonds are probably more safe pick?
I can't give advice on what other people should buy as it depends on so many factors....including the composition of their existing portfolio, tax situation, risk aversion, etc. In general terms, ARDC is doing well now because of high interest rates. That may change if rates fall, especially if they fall quickly. So I wouldn't describe it as a long term hold. BST is good for long term exposure to tech. It's volatile but has solid long term returns.
Thank you! I'd never heard of those funds, interesting alternatives for diversification.
Always good to have alternatives. Thanks for being one of the first to watch a new video, and for commenting regularly. Glad you enjoyed the episode :)
I recently came across an interview with Steven Bavaria where he talked about his book "The Income Factory" that was published in 2020. Are you familiar with this book or Steven? I think it would be in your wheelhouse. Also he has done a bunch of interviews with other RUclips financial personalities. I would love to hear you talk with him on your channel.
Yes, I've been following him since before I retired and generally like his concepts. He's on my list of people to contact over the next 1-2 months for interview requests. I'd love to chat with him!
Thank you for doing this kind of content. While there are great "financial channels" and "dividend investments" but this is one of the few that concentrates on income producting investments. For those of us that are fast approaching retirement I get enough of the "if you will invest juat a little on your 20s you'll be a millionaire". Or the typical dividend companies ... KO, JNJ, PEP, MCD....etc. 2-3% yields... that will probably be closer to 6-8% in 7-10 years. Well, i dont need higger yields in a decade or so. I need the higher returns now.
Yeah, i get that. I have nowhere near that time horizon. So i need solid info. on quality investments for the next decade or so.
Thanks for your feedback. Those low yielding dividend growth stocks are fine for investors in the accumulation phase but as retirement kicks in, consistent income is more important than trying to have the largest portfolio at the end of our lives.
Love your content! How does ARDC compare to something like ICLO? Could they be considered competitors?
Hi, there are many CLO funds and I haven't studied OCLO. A quick look and I noticed that it's distributions have fallen recently, so I'd want to understand why.
Ok you’ve inspired me to add Thailand to the travel list!
I don't want to oversell it but its my favorite country on Earth :) The people are incredible. I'm off to the airport...more travel to come...
@@armchairincomechannel Safe travels!
Excellent advice and top notch delivery 🎉
Thanks for those encouraging words :)
Good information. I have a small position in ARDC and a larger one in AIF.
Thanks for sharing and I appreciate your feedback.
Great video. The 2.58% seems too high (Fidelity says it's 2.73%). Are there any other funds you know of which are similar to this but don't have such high fees? I like how they rebalance depending on what interest rates are doing. Hopefully there's another one out there that does the same without such high expense. Thank you.
I'm assuming you're asking about PFFA. They're total expense ratio is 2.52% but most of that is interest. The management fee is 0.80% which I think is reasonable for managing 200 preferred stocks. I don't know of another fund with the same (or better performance) in the preferred asset class that charges less than 0.80%. As for the rest of the expense....ie the interest...that's a cost of doing business in a leveraged fund. If you invest in real estate or any other leveraged asset, you will be paying whatever the interest expense is.
@@armchairincomechannel sorry but no, I wasn't referring to PFFA, I was talking about ARDC. At 5:18 of this video you said "The management fees are high, at 2.58%..."
Thanks. I ALSO BOUGHT BXSL A COUPLE OF MONTHS AGO. It’s been doing well. Can you give your opinions on how BDCs will do in 2024/2025? Lower interest rate may not be good but it benefits the companies in BDCs portfolio. So I feel it’s not bad especially the rate 10:41 won’t come down too fast nor too much.
Thanks for sharing. BXSL has been doing well. I have no idea what any stock or sector will do in the future! With that disclaimer out of the way, I was a bit overweight in BDCs last year because the opportunity was so good when interest rates were climbing. I intend to remain in the sector for the long term because I think they can do well in most environments. I think the special dividends will fade away but the good BDCs (there are a few duds) will continue to pay consistent regular dividends. Lower interest rates will mean a smaller profit margin, but more loan volume and/or the opportunity to negotiate better loan terms. It will also increase the returns on their equity investments. I'll keep trying to get Michael from Putnam (PBDC) on my channel because I want to do an in depth interview with an expert on this topic.
So in your opinion, is dividend reinvesting a good idea? I’m doing it for jepi/q, but not for bxsl. bc I feel it’s volatile, maybe to buy at my own pace is better?
I don't do auto dividend reinvesting because I want to buy whatever is the best opportunity at the time.
Take a look at the new XDTE and QDTE ETFs
Thanks for the suggestion. I generally don't spend much time reviewing and investing in brand new funds because there's more downside (no history) than upside. I made an exception for QQQI because its the same as SPYI, but with a different index. I'll keep an eye on those Roundhill funds and hopefully they'll deliver some decent results.
Amazing job! Thank you!
Glad you liked it!
Appreciate your videos. ARDC is something to look at outside my usual norms. The 34% leverage is likely a pass for me though. Thanks
Good to see you acknowledge the risk of the leverage. It's not free money.
Great video thank you. Change of subject - you reviewed FEPI a few months ago - its still doing very well and holding its own almost 6 months - 25%+ and increasing price - are you still considering this as a possible investment - and increasing your ‘one share’?
Thanks for your feedback. Regarding FEPI, I agree, it's new but so far so good. To answer your question, I'm gradually buying more.
Contant and delivery are great. What do you hold in your portfolio?
Thanks for your feedback. I have over 30 stocks and funds. Working on a format to share them in the coming months. Larger positions include SPYI, QQQI, SVOL, PBDC, PFFA.
I just found your channel and I love your videos. I switched to this same strategy just after COVID. I was wondering if you use margin to purchase more share to accelerate income or do you rely on reinvesting a portion of your income to keep growing income?
Thanks for your feedback. I don't use margin, I reinvest a portion of my distributions. Prior to retirement I used leverage for real estate investing, but if something went wrong, I had income from work to fix the problem. Now that I'm retired, my tolerance for risk is lower so I don't have any debt. Some of the funds use leverage as part of their strategy and that's enough risk for my taste.
@@armchairincomechannel Thank you for the reply. That is helpful.
Does 5% expense ratio already include in the yield?
The yield is net of the expenses. About half of the 5% is interest. So if the yield is 10%, those expenses have been taken out before hand.
@@armchairincomechannelSo 15% including expenses ratios and 10% excluding the expenses. I wonder why most CEFs' expenses ratios are so high. Does it make sense to have low expenses ratios to attract more money? They are not safe either since they also use leverage.
Half the 5% is interest, so 2.5%. Still high....but not 5% high. I don't count interest in the same category as management fees. Leverage can be safe or dangerous, depends how its used. Expense ratios also vary based on the size of the fund (a $30B fund doesn't need to charge a high percentage to make a lot of money) and the amount of resources needed to manage the fund...some are more work than others. CEFs tend to be smaller and more specialized so they charge higher fees to generate the same dollar amount of management income.
Nice Video and Funds I can buy in Germany. What do you think about CSQ? CSQ also looks like a solid dividend payer with around 8% Dividend. (7.7% at the moment).
I'm not familiar with CSQ. The dividends were cut in half following the GFC but aside from that, it has a solid history of consistent and increasing dividends, and the total return has almost kept up with the S&P 500 which is difficult for an income fund. I'll add it to my list of funds to research further. Thanks for the suggestion.
selling the idea at a high?...why not at the low?
I don't understand what you mean by an "idea".
Welcome to Thailand
Thanks! I love Thailand :)
CEFConnect - total fees 5%....RITM
The 5% includes interest expense. However, 2.58% is a management fee which is quite high. If I can find the same features and returns for a lower fee I'll switch :)
CEF's accounting concerns me. I feel lucky when the coward in me helps out. Leverage increases Beta. Any thoughts on RITM,
@@armchairincomechannel
But the income stream from ARDC is not consistent and has also lost ground to inflation. You literally show @0:10 the problem with the dividend stream while defending it.
Not sure about the primary argument that you opened with.
Well that and since it came out in 2012 the price is down almost 50% (inflation adjusted) or 30% if you ignore inflation.
If you had thus fund over the last 12 years your purchasing power is down 50% and your nut is 30% smaller (or 50% if you want to adjust for inflation).
Even if one was in the accumulation phase still and was reinvesting the dividends it only compounded at 5.5% per year vs 8.68% for the Vanguard Balanced index or 12.75% for SCHD or 14.1% for the SP500.
If you were taking income, again the income stream from this fund is a loser with or without considering inflation. And if you started with SCHD or ARDC at the same time, end 2012, by the time you get to 2020 SCHD is already paying out more in absolute dollars than the initial investment in ARDC would. By the end of 2023 SCHD was paying out 37% more cash.
I would say the only place that this, or others like it have, is as a bridge the gap investment for your first few years of retirement to bring your income up while still leaving the bulk in investments with a history of increasing income over time. Not saying SCHD as there are many individual stocks as well I only used it for an easy example. But I could have picked any group of dividend aristocrats and gotten the same rising stream of income over time. Even then though I would gradually sell it off and buy into income stream growers and eventually have a $0 position in things like this.
Look at that dividend drop that started 2020. Let's pretend you started investing there so you had a new baseline. By the time you get to end last month there has been an erosion of the dollar of 16.7% which means that your income stream this year is the same as in 2020 i.e., you got went nowhere. Share price since jan 2020 is also down around $1.12 per share or 7.3% and far worse if you adjust for inflation.
I get diversifying away from stocks but why pick something that is going to be a loser from a price appreciation and income side.
I love your content but this one...seems like more thought should have gone into it.
Thank you for your detailed feedback. I agree with most of what you said but I think we're looking at different goal posts. If I had to pick one fund, I'd pick SCHD over ARDC too. It's more diversified and delivers more growth and consistent income. I mentioned in the video that there were periods when ARDC performed poorly. It's not a fund that I'd necessarily hold forever. Over the past 12 months, ARDC has delivered total returns double that of SCHD, so its not as though SCHD is always the better investment. My goal with SCHD is simply to add some exposure to the credit markets mentioned, rather than tying all returns directly to the S&P or NASDAQ. I understand that having that exposure may not improve my total return, but I want my income sources diversified. If there's another fund that gives me exposure to corporate credit and delivers better returns than ARDC, I'm open to it...especially if the management fees are lower :)
You don't like Pimco CEFs. PDI and PDO yields are high and consistent.
I’ve never said anything against Pimco! I’m a fan of PDI in particular. These videos take a while to make so I haven’t had time to cover every fund I’d like to. PDI invests in mortgage backed services, which is a different asset class.
U know CHI 11%Yield?
Thailand 🇹🇭 where to this time? Enjoy your vacay🌊🏖 kha
Yes, I'm still looking into convertibles. It's an interesting asset class. Check out ACV and compare them for total returns. Arrived recently in Vietnam, thanks for the good wishes Krup.
lets look into CEF... PDI is the one I call. **** UPDATE - Nevermind!!! missed PDI back in october.
I like PDI too :)
2% pays for the trip? Nice
Saving up and investing for most of my adult life was a factor too :)
@@armchairincomechannel well deserved
ARDC total return since its inception isn't that great. One could diversify with RNP or GOF and get better total returns with higher dividends.
I agree, ARDC requires some timing to deliver decent returns. There were periods when interest rates were close to zero and the fund didn't produce much income. I like RNP too (there's a video dedicated to it on my channel) but it's focused on REITs and Preferreds...different sectors. GOF has an excellent history of delivering high yield but generally trades at a huge premium to NAV so you have to be comfortable with the risk of the NAV premium shrinking. If the premium remains it will continue to do do well.
It's not a great idea to buy high-risk credit funds when credit spreads have tightened to pre pandemic levels. AGGH is better.
Thanks for sharing your thoughts. Total Return for ARDC is up 37% for the past year versus AGGH. If you think that’s about to reverse based on tightening credit spreads then that’s something to consider. AGGH is a complicated fund and the holdings keep changing. I’ll keep an eye on it.
2.6% annual Fee?!! 😳....No fucking way
It's the highest fee I've seen for a while. If I can find exposure to the same 4 credit markets and the same (or better) returns for a lower fee, I'll happily trade to a different fund.