Closed End Fund #2: Gabelli Equity Trust
Distribution Rate: 8%
Expense Ratio: 1.42%
Gabelli Equity Trust (GAB) is another good option in the world of closed end funds.
GAB invests mainly in common stocks and other equity securities, with an eye toward value. Top holdings in the closed end fund include American Express (AXP), Rollins (ROL), Honeywell International (HON) and Deere (DE).
The closed end fund is managed by investment guru Mario Gabelli — the founder, chairman and CEO of Gabelli Asset Management, and a manager with a long and strong track record of long-term capital growth.
Shares of this closed end fund aren’t currently selling at a discount, but assets of $1.6 billion, a sweet current distribution rate of 8.1% and a relatively cheap total expense ratio of 1.42% are all things to like about GAB.
GAB is up a whopping 33% year-to-date and has a five-year return of 23%.