Earlier in 2021, GUT’s premium was even higher—a shocking 100%. Even the often-irrational CEF market recognized GUT had gone too far and responded by briskly selling. So even though the fund’s NAV was placid, declining a mere 1.8%, investors lost nearly 10 times as much because of the drop in the fund’s premium. And the situation is actually worse than that, because remember, as well, that GUT’s yield is calculated based on its market price. And due to the outlandish premium, GUT’s yield on NAV is well above the fund’s market price, at 13.7% as of this writing.

Source: Forbes July 10, 2021 23:03 UTC