Mario and his team look for companies with reliable cash flow and rising profits, which is why the fund owns Mastercard and PepsiCo. This team is headlined by famed value-investing guru (and Warren Buffett disciple) Mario Gabelli. GAB is managed by a group of value investors who focus on high-quality, mostly mid-cap and large-cap stocks. An ETF like the SPDR S&P 500 ETF (SPY) can balloon to have a whopping $278 billion in it, where the biggest CEF has just $4 billion in assets. While ETFs can, and do, increase their total number of shares outstanding, CEFs do not, which helps keep them small and more manageable. Unlike mutual funds, whose values are reconciled and unit prices are set after each trading day, CEFs trade during the exchange’s opening hours, just like an ETF or a regular stock.Īnd unlike ETFs, a CEF has a fixed amount of shares that are established when the fund holds its IPO.
First, a CEF is like a mutual fund or an exchange-traded fund (ETF), but with some key differences.
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