Thoughtful analysis and always great to buy something at a discount. One data point you need to consider is the unrealized gains in the fund. Here is the semi annual report. Total assets $1.1 bn. Unrealized gain $611 million. If the fund were to liquidate and sell everything, taxable investors would see a tax bill of say 20% on the $611 or about $120 million. That is about 10% of the fund- most of your discount. So best to own this in an IRA to actually be buying at a discount.
Comments
Thoughtful analysis and always great to buy something at a discount. One data point you need to consider is the unrealized gains in the fund. Here is the semi annual report. Total assets $1.1 bn. Unrealized gain $611 million. If the fund were to liquidate and sell everything, taxable investors would see a tax bill of say 20% on the $611 or about $120 million. That is about 10% of the fund- most of your discount. So best to own this in an IRA to actually be buying at a discount.
Post: In Praise of Active
Link to comment from August 17, 2022