GOF's Yield Looks More Appealing Than PTY's
ByAinvest
Monday, Oct 13, 2025 9:56 am ET1min read
GOF--
The initial comparison focused on credit spreads, which were near their thinnest levels in the past four decades. This observation led to favoring PTY (rated as a hold) over GOF (rated as a sell) due to PTY's larger allocation to government securities, providing a better reward/risk ratio [1].
Since then, several developments have influenced the comparison. The outlook on interest rate cuts has been updated, and both funds have experienced price changes, payout declarations, and net investment income (NII) reports. PTY delivered a total return of more than 7.3%, outpacing GOF's ~3.0% return [1].
GOF's current TTM dividend yield of 14.59% is considerably higher than PTY's 9.77%. However, PTY's 3 Month Rolling Coverage Ratio of 74.77% and 6 Month Rolling Coverage Ratio of 57.72% indicate a more sustainable payout compared to GOF's distribution breakdown, which includes a significant portion of return of capital [1].
Additionally, GOF's portfolio is more diversified, with only 8.99% of its total assets invested in its Top 10 largest holdings, compared to PTY's 26%. GOF also has a lower annual turnover rate of 25% compared to PTY's more than 56% [1].
In conclusion, while GOF offers a higher current yield, PTY's history of outperforming, better reward/risk ratio, and more sustainable payouts make it a better option for investors seeking higher returns.
PTY--
As a finance expert, I compared PIMCO Corporate and Income Opportunity Fund (PTY) and the Guggenheim Strategic Opportunities Fund (GOF) on July 7. GOF's current yield seems more attractive than PTY. However, PTY has a history of outperforming GOF, making it a better option for investors seeking higher returns.
As a finance expert, I compared PIMCO Corporate and Income Opportunity Fund (PTY) and the Guggenheim Strategic Opportunities Fund (GOF) on July 7. GOF's current yield seems more attractive than PTY. However, PTY has a history of outperforming GOF, making it a better option for investors seeking higher returns.The initial comparison focused on credit spreads, which were near their thinnest levels in the past four decades. This observation led to favoring PTY (rated as a hold) over GOF (rated as a sell) due to PTY's larger allocation to government securities, providing a better reward/risk ratio [1].
Since then, several developments have influenced the comparison. The outlook on interest rate cuts has been updated, and both funds have experienced price changes, payout declarations, and net investment income (NII) reports. PTY delivered a total return of more than 7.3%, outpacing GOF's ~3.0% return [1].
GOF's current TTM dividend yield of 14.59% is considerably higher than PTY's 9.77%. However, PTY's 3 Month Rolling Coverage Ratio of 74.77% and 6 Month Rolling Coverage Ratio of 57.72% indicate a more sustainable payout compared to GOF's distribution breakdown, which includes a significant portion of return of capital [1].
Additionally, GOF's portfolio is more diversified, with only 8.99% of its total assets invested in its Top 10 largest holdings, compared to PTY's 26%. GOF also has a lower annual turnover rate of 25% compared to PTY's more than 56% [1].
In conclusion, while GOF offers a higher current yield, PTY's history of outperforming, better reward/risk ratio, and more sustainable payouts make it a better option for investors seeking higher returns.
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