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David Snowball's June Commentary Is Now Available

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  • Wonder how CEF commissions work. Like stocks and ETFs perhaps? Thinking not though.

    Have been looking at purchasing CEF (yeah that is a CEF) for years but never did, and now SOR looking good.
  • edited June 2017
    Trading is just like stocks & ETFs; broker's commissions the same.

    Be aware many taxables are pretty extended, with 1y returns up in the +30s - won't go on forever.
  • Funds in Registration seems to suggest that CBOE Vest S&P 500® Dividend Aristocrats Target Income Fund will only offer load shares (it talks about A shares).

    As with other CBOE Vest funds, there will be four classes offered. The SEC filing contains two prospectuses, one for A and C shares, and one for Investor and Institutional class shares. Like the A shares, the initial ER for the investor class shares will be 1.20% after waivers with a $1K min, but will be sold with no load (Search for Investor class in the filing.)
  • edited June 2017
    @AndyJ. Both SOR and CEF are trading at discount. I know by itself that doesn't mean anything. I was looking for vehicles for exposure to precious metals for one, and then thinking why buy more of FPACX if SOR is "cheaper"?

    If they trade just like stocks, hoping commission free trades every month count toward CEFs. Then its like purchasing NTF, with no early redemption penalty :-)
  • edited June 2017

    If they trade just like stocks, hoping commission free trades every month count toward CEFs. Then its like purchasing NTF, with no early redemption penalty :-)

    They do. Those free trades you get for moving $ around are worth a pile of dough.

    Not familiar with SOR - I don't venture beyond FI CEFs. Noticed, tho, that the volume is lower than I'm comfortable with, if that's an issue for you.
  • SOR since Romick took it over has had a persistent discount, often double digits. It may never go away. Returns have been "muted," as they say. You would not know we've been in a bull market if you looked at only SOR's returns. Trading volume is low, as @AndyJ said. I believe the FI portion of SOR is handled by a different team from the FI team on FPACX and they are very conservative. 18 months ago, I bought SOR thinking I would get Romick, et al, in a vehicle where they could excel because of the fund's small size. I no longer think that and I sold. Maybe they'll do well when the market tanks.
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