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ETO: Strong Global Multi-Asset Fund, Market-Beating Performance, 8.51% Distribution Yield, Diversified Holdings

Published Fri, 22 May 2020 06:44:04 -0400 on Seeking Alpha

International and asset class diversification can help boost returns and minimize risk and volatility alike.
International funds have, however, significantly underperformed for years, so many investors are wary of investing in these.
ETO, a global multi-asset allocation leveraged CEF, has managed to perform reasonably well for years, and could provide investors with the diversification they need.
The Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO) is a global multi-asset allocation leveraged CEF, focusing on U.S. and international equities. ETO's highly-diversified holdings, decades-long track record of market-beating shareholder performance, and strong 8.51% distribution yield, combine to create a strong fund and investment opportunity, and is particularly appropriate for investors looking for international diversification.
As a final note, as this article was originally published close to a month ago, I decided to check back on the performance of the fund. ETO has outperformed the S&P 500 on a NAV basis, but underperformed on a price basis, due to an increase in the fund's discount. Strong results all things considered, and the fund seems like a better investment opportunity now than it did last month.
Data by YCharts
Fund Basics
Sponsor: Eaton Vance Distribution yield: 8.51% Expense Ratio: 2.34% Total Returns CAGR (NAV - 10Y): 7.24% Fund Overview - Diversified Global Multi-Asset Fund

ETO is a multi-asset leveraged CEF, focusing on U.S. and international equities, with smaller holdings in other asset classes, including corporate bonds, preferred shares, and other ETFs.

(Source: ETO Factsheet)
ETO's holdings are reasonably well-diversified across countries and regions, but with a strong focus on U.S. securities, due to their comparatively large size and safety:

(Source: ETO Factsheet)
ETO's holdings are not that particularly concentrated, with the fund's top 10 holdings accounting for about... Read more