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5 Best Closed End Funds to Buy

Closed end fund investments offer traders big upside

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Closed End Fund #5: Source Capital

sor closed end fundsDistribution Rate: 4.7%
Expense Ratio: 0.86%
Leverage: None

This final closed end fund is another non-leveraged option. Source Capital (SOR) has assets of $511 million, and the closed end fund invests primarily in equity and equity-related investments. It is managed by the savvy Rich Atwood, FPA’s managing partner and chief operating officer.

Top holdings for this closed end fund include: O’Reilly Automotive (ORLY), CarMax (KMX), Signet Jewelers (SIG) and WABCO Holdings (WBC).

Plus, the SOR closed end fund is trading at a discount of nearly 10% and has a reasonable total expense ratio of 0.93%.

The total distribution rate of 4.7% is lower than other names on this list, but the closed end fund has steady returns to make up for that. SOR has climbed 22% year-to-date, and 29% over the last year.

As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.

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