GAB: Risks Abound For This Underperforming Equity CEF
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The Gabelli Equity Trust (GAB) offers a high yield but has underperformed the S&P 500 and its peers over the past five years. Concerns arise over potential distribution cuts due to reliance on unrealized capital gains, high expenses, and leverage.

November 12, 2024 | 8:30 pm
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The Gabelli Equity Trust (GAB) offers a high yield but has underperformed the S&P 500 and its peers over the past five years. Concerns arise over potential distribution cuts due to reliance on unrealized capital gains, high expenses, and leverage.
GAB's high yield is attractive, but its underperformance compared to the S&P 500 and peers, along with high expenses and leverage, raises concerns. The reliance on unrealized capital gains for distributions suggests potential cuts, negatively impacting investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100