NUVEEN CO.EQU.ALPH.DL-,01 Aktie

The Nuveen Core Equity Alpha Fund invests in large cap U.S. stocks while selling call options to manage risk. The fund has delivered a positive return in 2024, but historically underperforms benchmarks. We offer our opinion of the fund in the context of its stated strategy. » Mehr auf seekingalpha.com

Nuveen Core Equity Alpha Fund provides exposure to large-cap companies and uses a call-writing strategy to generate options premiums for distributions and potentially dampen volatility. The JCE closed-end fund's discount/premium seems to have somewhat stabilized, but it's around the longer-term average, making it appear fairly valued. The JCE fund offers a relatively high distribution rate, but the distribution is largely covered by capital gains, which can come under pressure in a down market. » Mehr auf seekingalpha.com

Nuveen Core Equity Alpha Fund has underperformed the S&P 500 by almost 50% due to its option overlay strategy and low volatility levels. The low volatility environment has resulted in low option premiums, which do not adequately compensate JCE for market moves. Investing in the S&P 500 outright or choosing a different closed-end fund without an option overlay may be a better choice in the current low VIX environment. » Mehr auf seekingalpha.com