HIE Portfolio Allocation

This chart gives you a high-level look at the allocation categories for this strategy.

A bond closed-end fund (CEF) invests primarily in fixed-income securities like government, corporate, or municipal bonds and trades on an exchange like a stock. It typically uses leverage to enhance yield, which can increase income but also adds risks. CEFs can also trade at significant price premiums and discounts to their net asset value—which also creates risks and opportunties.

• Click here for a review of the 7 things I always consider before investing in any closed-end fund (CEF).

BDC: A business development company invests in small and mid-sized private companies, often through debt and equity financing. BDCs were created by an act of Congress in the 1980s to help small and mid-sized businesses, and they are also designed to provide income to investors through high dividend payouts.

Stock CEF: A stock closed-end fund holds a portfolio of publicly traded equities and trades on an exchange at a market price that can differ from its net asset value. These funds often use leverage and active management to generate higher income or returns than traditional equity ETFs.