Covered Call Closed End Funds (CEFs)

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Below you will find our listing of Covered Call Closed End Funds (CEF’s).  These are also known as Buy Write Funds

This list may not be a complete list, but does contain the vast majority of funds that are devoted to owning common shares and writing calls against their holdings. In general these funds write call options against 40-95% of their portfolios.

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Closed end funds generally use leverage when investing–given that borrowing costs are low they are able to earn more in dividends from their holdings than the cost of the leverage (interest) thus they are able to pay a larger distribution.

Closed end funds may trade above or below NAV (Net Asset Value) and this is simply a function of supply and demand.

Below we show the current prices and distributions for the Closed End Funds as well as the most recent distribution extrapolated out to a 12 month period.

This list in NOT meant to be the end of your research–but instead it should be just the start.

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IMPORTANT NOTE on these funds.  These funds hold some potentially very volatile common stocks (i.e. Google, Apple etc) and while ‘writing’ calls against the positions can add income and this is considered more conservative than simple owning he common stock it also presents significant risk of a downside move in the shares.

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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