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 (ADX -0.05%) and Petroleum & Resources (PEO -1.20%), two closed-ends that perennially trade at discounts to their net asset value. Dan notes that Adams Express gives investors cheap exposure to Apple (AAPL -0.72%) and other lucrative dividend-paying stocks, while Petroleum & Resources focuses on energy investment ExxonMobil (XOM -1.45%), Chevron (CVX -0.97%), 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.