Core Viewpoint - The ASA Gold & Precious Metals Fund (ASA) has significantly outperformed other closed-end funds (CEFs) in 2025, with a remarkable increase of 172%, primarily due to the rising gold prices. However, it is not recommended as a buy due to its low yield and historical underperformance compared to both the S&P 500 and gold prices [4][5][6]. Performance Analysis - ASA's performance in 2025 is exceptional, but it is an outlier as no other CEF subsector has exceeded a 15% increase [4]. - Over the last two decades, ASA has underperformed the S&P 500 on a total-NAV-return basis, indicating that its portfolio performance has lagged behind broader market indices [5]. - Investors who purchased ASA 20 years ago would have faced significant losses during certain periods, particularly in the 2010s, highlighting its volatility and risk [6]. Income Generation - ASA yields only 0.1%, which is substantially lower than the average yield of over 8.3% for other CEFs, making it unattractive for income-focused investors [4][7]. - In contrast, other CEFs, such as the PIMCO Corporate & Income Opportunity Fund (PTY), offer higher yields and have maintained strong dividends since inception [9]. Alternative Investment Options - Several high-yield stock CEFs, including the Adams Diversified Equity Fund (ADX) and Liberty All-Star Equity Fund (USA), have outperformed ASA in terms of long-term returns and income generation [8][10]. - These alternative funds provide a "mini-portfolio" yielding an average of 10%, significantly higher than ASA's yield, and have shown better historical performance [10]. Investor Caution - The current success of ASA may lead to a recency bias among investors, potentially resulting in poor long-term investment decisions if historical performance is ignored [11][12]. - Investors should be wary of the lack of income from ASA while waiting for potential future gains, as its long-term trend suggests a likelihood of underperformance [12].

Core Insights - The article discusses the benefits of leveraged closed-end funds (CEFs) when the Federal Reserve begins to cut its target interest rate, particularly in terms of reduced borrowing costs for these funds [2]. Group 1: CEFs and ETFs Overview - The CEF/ETF Income Laboratory manages portfolios targeting safe and reliable yields of approximately 8%, aimed at simplifying income investing for members [2]. - The service offers managed portfolios, actionable income and arbitrage recommendations, and in-depth analysis of CEFs and ETFs, catering to both active and passive investors [2]. - A significant portion of the holdings in these portfolios are monthly-payers, which enhances compounding and stabilizes income streams [2]. Group 2: Analyst Background - Nick Ackerman, a former financial advisor with over 14 years of personal investing experience, provides coverage on closed-end funds and exchange-traded funds [3].

Group 1 - Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD) is a multi-asset closed-end fund (CEF) that has not been previously covered [1] - The fund is described as exciting, with a focus on providing transparency and analytics in capital markets instruments and trades [1] - Binary Tree Analytics (BTA) aims to deliver high annualized returns with a low volatility profile, focusing on CEFs, ETFs, and Special Situations [1]

Group 1 - The CEF/ETF Income Laboratory manages portfolios targeting safe and reliable yields of approximately 8% to facilitate income investing [2] - The service includes managed portfolios, actionable income and arbitrage recommendations, and in-depth analysis of closed-end funds (CEFs) and exchange-traded funds (ETFs) [2] - The community consists of over a thousand members focused on finding the best income ideas, catering to both active and passive investors [2] Group 2 - The potential for increased inflation due to announced tariffs may lead to the Federal Reserve maintaining higher interest rates for an extended period [2] - The majority of holdings in the CEF/ETF Income Laboratory are monthly-payers, which aids in faster compounding and smoothing income streams [2]