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The Shocking Truth About CEF Return of Capital

One thing investors ask me about all the time is return of capital, or ROC. In a nutshell, these folks are mainly worried that ROC is simply a fund taking your money and paying you a dividend from your money without actually making a positive return on it. Worse, they’re doing this after taking out their fees, which are much higher than the fees you’d pay on an index fund. Before you get your pitchfork out, know that this perception of ROC is wrong…