7 Comments
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The Una_Bonger's avatar

What is the downside of these funds?

TheGamingDividend's avatar

capital erosion. Sometimes the funds pay out more than they actually generate in income, so the share price erodes over time. Just take a look at the share price history for the majority of these funds.

The Una_Bonger's avatar

How do I understand the risk of these funds?

I have rationalized it by comparing gains due to dividends vs unrealized losses. I feel like I am missing something

The Whispering Candle's avatar

Seems like a play for liquidity and a potential marketing gimmick