Are Closed-End Funds a Big Bargain?

Closed-end funds aren't the best-known investments in the market, but they often come at discount prices compared to the value of their underlying holdings. Does that make closed-ends bargain opportunities?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at closed-end funds and whether discounted shares are bargains. Dan looks closely at Adams Express (NYSE: ADX  ) and Petroleum & Resources (NYSE: PEO  ) , two closed-ends that perennially trade at discounts to their net asset value. Dan notes that Adams Express gives investors cheap exposure to Apple (NASDAQ: AAPL  ) and other lucrative dividend-paying stocks, while Petroleum & Resources focuses on energy investment ExxonMobil (NYSE: XOM  ) , Chevron (NYSE: CVX  ) , and other high-income stocks in the energy sector. Dan runs through the pros and cons of the discounts, noting that the best of all worlds would be to buy at a discount but sell at no discount.

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