The Virtus Equity & Convertible Income Fund (NIE), a closed-end fund yielding 9%, has shown remarkable performance, achieving a total return of 253% over the last decade. On average, only about 56% of the fund’s portfolio is invested in stocks, with approximately 40% in convertible securities and the remainder in cash. Major holdings include established companies such as NVIDIA, Apple, Amazon, and Caterpillar.
The fund’s diverse asset allocation, featuring convertible bonds and preferred stocks, provides both income and reduced volatility. Despite its conservative profile, NIE delivered a 58% total return in just over four years and recently increased its dividend payouts. As of now, the fund is trading at a 10% discount to its net asset value, which is narrower than its past average of 12%.
Investors are advised to monitor NIE, waiting for a wider discount before potentially reinvesting, as it remains a high-quality option for diversified income generation.
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