Eaton Vance Tax-Managed Global Diversified Equity Income Fund (EXG) Stock

The U.S. equity market has outperformed international markets for an extended period of time, going back to around the Global Financial Crisis. Diversifying with global investments can be beneficial; relative valuations between the U.S. market and the international counterparts have been getting quite extended. Today, we look at two closed-end funds that have the added flexibility of investing with a global tilt but also having meaningful U.S. exposure.

The Eaton Vance Tax-Managed Global Diversified Equity Income Fund offers a high 9.32% yield while maintaining global equity exposure. The fund employs an options strategy to generate income, which limits capital appreciation but appeals to income-focused investors. The fund's option is riskier than a covered call strategy and depends heavily on the ability of the stock portfolio to outperform the indices.

The Eaton Vance Tax-Managed Global Diversified Equity Income Fund is a closed-end equity fund that offers global equity exposure. A previous article recommended a 'Buy' rating for EXG due to its appealing valuation metrics, and the fund has performed positively since then. The fund's discount to NAV is significant because of the low VIX environment, which decreases the value of options sold by the fund.

Eaton Vance Tax-Managed Global Diversified Equity Income Fund offers global exposure while also implementing a call-writing strategy. The EXG closed-end fund is trading at a large discount on both an absolute and relative basis, making it an attractive investment choice on the market today. The fund's distribution yield is attractive at 8.37%, and it is paid monthly; as always with equity funds, most of this will need to be covered through capital gains.

Eaton Vance Tax-Managed Global Diversified Equity Income Fund offers high income from equity securities without sacrificing upside potential. The fund also provides decent exposure to foreign equity markets. The EXG closed-end fund's performance has not matched that of the S&P 500 Index or MSCI World Index even when distributions are included. The fund's distribution yield is higher than comparable equity indices, but its distribution history shows a trend of reducing payouts.

EXG is an equity closed-end fund utilizing written options to extract dividends from its equity portfolio. Over a 10-year period, EXG has tracked closely with the Vanguard Total World Stock ETF, with periods of outperformance. The Fund's strategy involves writing call options, which works better when volatility is high. The current low volatility environment has resulted in a widening of the discount to NAV for EXG.

Eaton Vance Tax-Managed Global Diversified Equity Income Fund is a popular global income-focused closed-end fund that offers diversification outside the U.S. The EXG closed-end fund has underperformed both the S&P 500 Index and the MSCI World Index over just about every period, including during bear markets, raising concerns. Despite its underperformance, the EXG fund offers a high current distribution yield of 9.10% and has a discounted net asset value, making it potentially attractive for investors.

EXG is a global equity CEF that seeks to provide current income with a secondary objective of capital appreciation. EXG employs a covered call strategy. I generally like more globally diversified funds at this stage of the cycle, and think that this does provide the fund a unique edge relative to other high income funds.

The Eaton Vance Tax-Managed Global Diversified Equity Income Fund is a robust global equity buy-write fund that has outperformed simple vanilla ETFs. The fund sells call options on roughly half its portfolio, helping to buffer some of the downside during market downturns, but underperforms during sustained market rallies. Despite its success, the fund has seen its discount to NAV widen since 2022, a feature expected to revert in the next market structural bull cycle.