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 +0.13%) and Petroleum & Resources (PEO +0.04%), 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 +0.11%) and other lucrative dividend-paying stocks, while Petroleum & Resources focuses on energy investment ExxonMobil (XOM 0.06%), Chevron (CVX +0.79%), 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.
