PM Images The First Trust High Inc Long/Short Fund ( FSD ) is a closed-end fund, or CEF, that income-focused investors can purchase as a method of achieving their goals of earning a high level of current income from the assets in their portfolios. The fund does fairly well at this task, as its 10.45% current yield is higher than most other funds in its class.
We can see that here: Fund Name Morningstar Classification Current Yield First Trust High Income Long/Short Fund Fixed Income-Taxable-High Yield 10.45% Allspring Income Opportunities Fund ( EAD ) Fixed Income-Taxable-High Yield 9.38% BNY Mellon High Yield Strategies Fund ( DHF ) Fixed Income-Taxable-High Yield 8.
64% BlackRock Corporate High Yield Fund ( HYT ) Fixed Income-Taxable-High Yield 9.57% Credit Suisse High Yield Bond Fund ( DHY ) Fixed Income-Taxable-High Yield 9.07% PGIM High Yield Bond Fund ( ISD ) Fixed Income-Taxable-High Yield 9.
98% Click to enlarge As we can clearly see, the First Trust High Income Long/Short Fund has a higher yield than most other closed-end funds that invest in high-yield bonds. However, this fund may not be perfectly comparable to all of these peers. As the name of the fund suggests, the First Trust High Income Long/Short Fund can short bonds that the fund’s management suspects with fall in price.
If done properly, this can provide the fund with an investment return that exceeds that provided by the junk bonds that constitute the long positions in the portfolio. If we assume that this.
