Top Technical Analyst Recommends BXMX, EXG, and RVT!

EddieJayonCrypto

 6 Sep 24

tl;dr

Nuveen S&P 500 Buy-Write Income Fund (BXMX), Tax-Managed Global Diversified Equity Income Fund (EXG), and Royce Small-Cap Trust (RVT)—are recognized for their income potential and relatively stable performance, according to analysts.

Top Technical Analyst Carl Aridas recommends Nuveen S&P 500 Buy-Write Income Fund (BXMX), Tax-Managed Global Diversified Equity Income Fund (EXG), and Royce Small-Cap Trust (RVT)—are recognized for their income potential and relatively stable performance, according to analysts.

1. Nuveen S&P 500 Buy-Write Income Fund (BXMX) is a closed-end fund designed to offer a steady income stream by investing in equities that track the S&P 500 and employing a buy-write (covered call) strategy. This strategy generates additional income by selling call options on the equity portfolio. It’s attractive in range-bound markets and offers lower volatility than typical equity funds. The fund provides a high distribution yield, currently hovering around 8%, making it popular among income-seeking investors.
2. Tax-Managed Global Diversified Equity Income Fund (EXG) focuses on tax-managed global equity investments, aiming to minimize capital gains taxes while generating high yields. The fund uses a similar buy-write strategy, which provides consistent income and reduced downside risk in volatile markets. Its diverse portfolio across global markets allows for greater stability and reduced exposure to any single market's risk.
3. Royce Small-Cap Trust (RVT) specializes in small-cap companies, focusing on value investments. Its portfolio includes a wide range of smaller firms that are often overlooked by larger investors but offer growth potential. Small-cap stocks tend to be more volatile than large-cap stocks, but RVT is recognized for its ability to capture high returns during favorable market conditions, offering stability through diversification across industries. The fund also offers an attractive yield and trades at a relatively low price-to-earnings (P/E) ratio compared to other small-cap funds.

These funds provide a balance of yield and stability, with BXMX and EXG offering consistent income streams through covered call strategies, while RVT provides exposure to small-cap growth potential​