Closed End Fund #3: H&Q Healthcare Investors Common
Distribution Rate: 7.3%
Expense Ratio: 1.32%
Next up, Tekla Capital Management’s H&Q Healthcare Investors Common (HQH) is another solid closed end fund, although it differs from the first two in that it is non-leveraged.
With Obamacare front and center in the national psyche, it makes sense to look to the healthcare sector for growth opportunities. This closed end fund aims to invest 80% of its assets in health services and medical technology companies and current holdings include some the biggest names in biopharma: Gilead Sciences (GILD), Celgene (CELG), Regeneron Pharmaceuticals (REGN) and Biogen (BIIB).
Plus, the closed end fund manager is Daniel Omstead. He is the CEO of Tekla Capital Management, and also formerly headed a development stage biotech company.
This closed end fund has $663 million in assets, a distribution rate of 7.3% and decent expense ratio of 1.32%. Also, the closed end fund boasts a year-to-date return of a whopping 47%, and a five-year return of 23%.