The ASA Gold & Precious Metals Fund (ASA) has achieved a remarkable 172% return in 2025, significantly outpacing all other closed-end funds (CEFs), which have not reached even 15% returns this year. ASA’s focus on gold miners has coincided with a surge in gold prices, setting it apart in terms of performance.
Despite its impressive short-term gains, ASA yields only 0.1%, contrasting sharply with the average CEF yield of 8.3%. Historically, ASA has underperformed against the S&P 500 and gold prices over the long term. Investors are cautioned against its lack of sustainable income and potential risks of reversion to prior performance trends.
Current alternatives to ASA include high-yield CEFs such as the Adams Diversified Equity Fund (ADX) and the PIMCO Corporate & Income Opportunity Fund (PTY), which offer higher yields and have demonstrated better long-term performance. ADX is trading at a 7.1% discount to net asset value (NAV), while PTY yields 10.9% and maintains a strong dividend history since 2002.
