Closed-End Fund Investment Picks for February 2025: 4 Buys and 1 Sell

In February 2025, four closed-end funds were identified as potential buys, while one was suggested for selling. The increase in market volatility led to a surge in the tech-heavy Nasdaq Composite, despite some of the deepest declines being clawed back on the last trading day.

In the volatile market of February 2025, four closed-end funds emerged as potential purchases, while one was suggested for selling. The increase in market volatility led to a surge in the tech-heavy Nasdaq Composite, despite some of the deepest declines being clawed back on the last trading day [1].

One of the standout funds was the Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB), which declared a monthly distribution of $0.12573 per share [2]. With a focus on municipal bonds and investment-grade debt, GBAB offers investors a relatively stable source of income in an uncertain market.

Another potential buy was the Advent Convertible and Income Fund (AVK), which declared a monthly distribution of $0.1172 per share [2]. AVK invests in a diversified portfolio of convertible securities, providing investors with exposure to both the equity and debt markets.

The Guggenheim Strategic Opportunities Fund (GOF) and the Guggenheim Active Allocation Fund (GUG) also caught the attention of investors, with monthly distributions of $0.1821 and $0.11875 per share, respectively [2]. These funds employ active management strategies, allowing them to take advantage of opportunities in various market conditions.

Conversely, the Guggenheim S&P 500 Equal Weight ETF (RSP) was suggested for selling. Although it tracks the S&P 500 index, RSP's equal weighting methodology resulted in a more volatile performance compared to the market cap-weighted S&P 500 index [3]. This added volatility might not be suitable for all investors, particularly during a market as turbulent as February 2025.

Investors should keep in mind that past performance is not indicative of future results, and it's essential to conduct thorough research before making any investment decisions [2].

References:
[1] Seeking Alpha. (2025, February 28). 4 Closed-End Fund Buys and a Sell for the Month of February 2025. https://seekingalpha.com/mp/1064-cef-etf-income-laboratory/articles/6126044-4-closed-end-fund-buys-and-a-sell-in-the-month-of-february-2025-nick-ackerman
[2] Guggenheim Investments. (2025, February 3). Guggenheim Investments Announces February 2025 Closed-End Fund Distributions. https://www.guggenheiminvestments.com/us/en/press/press-releases/2025/02/guggenheim-investments-announces-february-2025-closed-end-fund-distributions
[3] Investopedia. (n.d.). Guggenheim S&P 500 Equal Weight ETF (RSP). https://www.investopedia.com/symbol/rsp