ETF Education Report: Cohen & Steers Closed-End Opportunity Fund Inc (FOF)

What this ETF is trying to do

The Cohen & Steers Closed-End Opportunity Fund Inc (ticker: FOF) is an asset type listed as an ETF on the NYSE. While the specific investment goals are not detailed in the provided data, it is categorized as a fund that provides regular distributions to investors.

What the numbers show

It is important to understand the difference between price return and total return. Price return only tracks how much the share price moves. Total return includes both the price movement and the cash distributions paid out to investors.

• Year-to-Date (YTD): The price return is approximately -6.97%. However, the total return is -1.52%.

• One Year: The price return was approximately -5.10%. The total return for the year was 2.48%.

• Three Year: The price return was approximately 18.53%, while the total return was much higher at 52.46%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $12.94. The current price is $12.28.

Income and distribution explanation

This fund focuses on providing regular cash to investors. The distribution yield is approximately 8.50%. This means the fund paid out $1.04 in trailing distributions relative to its price. These payments usually happen monthly, with Tuesday being the most common day for distributions.

A high distribution yield can be helpful for those seeking cash, but it is not the same as total return. You should always look at the total return to see how the fund is performing overall after including those payments.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the fund's underlying assets. StockValueFinder uses an erosion-risk score to measure this risk. This fund has an erosion score of 75, which is labeled as "Mild price erosion." While there is a mild risk measurement, there is no severe erosion-risk flag present for this fund.

Pros

• The fund has a strong three-year total return of approximately 52.46%.

• It offers a high distribution yield of approximately 8.50%.

• The income rating score is 79, which earns a grade of "B."

Cons

• The year-to-date price return is negative at approximately -6.97%.

• The fund shows a "mild" erosion-risk score.

Beginner takeaway

When looking at FOF, it is important to distinguish between the share price and the total return. While the share price has declined recently, the total return (which includes cash payments) tells a different story. Always remember that a high yield does not guarantee that the share price will stay stable.