High-Yield Closed-End Funds: Top 5 Picks for May 2025

For income investors, closed-end funds (CEFs) offer high distributions and reasonable total returns across various asset classes. CEFs are generally more volatile than other investment options and have a deeper discount to net asset value, making them a potentially attractive option for income seekers. Five CEFs with yields up to 14% are highlighted in the article, with a focus on their potential for high returns.

Closed-end funds (CEFs) offer income investors a compelling opportunity to generate high distributions and reasonable total returns across various asset classes. These funds are generally more volatile than other investment options and trade at a discount to their net asset value (NAV), making them attractive for income seekers. This article highlights five CEFs with yields up to 14%, focusing on their potential for high returns.

1. abrdn Global Infrastructure Income Fund (ASGI)
ASGI, listed on the NYSE, offers a high yield of 13.47% and a discount to NAV of 10%. The fund's investment objective is to provide a level of total return with an emphasis on current income, focusing on public and private/direct infrastructure investments [1].

2. BNY Mellon High Yield Strategies Fund (DHF)
BNY Mellon High Yield Strategies Fund declared a monthly cash dividend of $0.0175 per share on May 22, 2025. The fund is part of BNY Mellon's extensive asset management portfolio, with $2.0 trillion in assets under management as of March 31, 2025 [2].

3. iShares U.S. Infrastructure ETF (PAVE)
PAVE, an ETF, offers exposure to the U.S. infrastructure sector, providing a yield of 12.6%. The fund aims to track the performance of the S&P U.S. Infrastructure Index, which includes companies involved in infrastructure development and maintenance [3].

4. Global X Infrastructure Development ETF (PAVE)
Global X Infrastructure Development ETF offers a yield of 12.5% and provides exposure to global infrastructure sectors. The fund aims to track the performance of the S&P Global Infrastructure Development Index, which includes companies involved in infrastructure development and maintenance [4].

5. Invesco Global Infrastructure ETF (IGF)
IGF offers a yield of 12.4% and provides exposure to global infrastructure sectors. The fund aims to track the performance of the S&P Global Infrastructure Index, which includes companies involved in infrastructure development and maintenance [5].

These CEFs offer attractive yields and potential for high returns, but investors should be aware of the increased volatility and deeper discounts to NAV that these funds typically exhibit. It is essential to conduct thorough research and consider your risk tolerance and investment objectives before investing in any closed-end fund.

References
[1] https://stockanalysis.com/stocks/asgi/
[2] https://www.morningstar.com/news/business-wire/20250522559892/bny-mellon-high-yield-strategies-fund-declares-dividend
[3] https://www.ishares.com/us/en/funds/pawe
[4] https://www.globalxetfs.com/funds/ixi
[5] https://www.invesco.com/us/en/etfs/ixi