THW: A Global Healthcare Fund With 11% Yield But Overpays The Distribution

Financially Free InvestorInvesting Group LeaderFollow5ShareSavePlay(14min)Comment(1)SummaryAbrdn World Healthcare Fund offers an 11.3% yield with global healthcare exposure, split nearly 50:50 between the U.S. and Europe.THW's distribution is largely funded by return of capital, with 60% of payouts as ROC over the past five years, raising sustainability concerns.Performance has a mixed record, with recent outperformance, but long-term performance is a bit lackluster, with a 7% annualized return since inception and some NAV erosion over time.This fund may suit income-focused investors who like to have consistent and monthly payouts but do not mind lower total returns than the S&P 500.Looking for more investing ideas like this one? Get them exclusively at High Income DIY Portfolios. Learn More » Khanchit Khirisutchalual/iStock via Getty Images Introduction: Closed-end funds offer an attractive investment class that covers various asset classes and promises high distributions to income investors. They can also offer reasonable total returns if the distributions are reinvested, but generally lag theThis article was written byFinancially Free Investor59.26K FollowersFollowFinancially Free Investor is a financial writer with 25 years investment experience. He focuses on investing in dividend-growing stocks with a long-term horizon. He applies a unique 3-basket investment approach that aims for 30% lower drawdowns, 6% current income, and market-beating growth on a long-term basis and he focuses on dividend-growing stocks with a long-term horizon. He runs the investing group High Income DIY Portfolios which provides vital strategies for portfolio management and asset allocation to help create stable, long-term passive income with sustainable yields. The service includes a total of 10 model portfolios with a range of income targets for varying levels of risk, buy and sell alerts, and live chat. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ABT, ABBV, CI, JNJ, PFE, NVS, NVO, AZN, UNH, CL, CLX, UL, NSRGY, PG, TSN, ADM, BTI, MO, PM, KO, PEP, EXC, D, DEA, DEO, ENB, MCD, BAC, PRU, UPS, WMT, WBA, CVS, LOW, AAPL, IBM, CSCO, MSFT, INTC, T, VZ, CVX, XOM, VLO, ABB, ITW, MMM, LMT, LYB, RIO, O, NNN, WPC, ARCC, ARDC, AWF, RLTY, CHI, DNP, PEO, TLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: The information presented in this article is for informational purposes only and in no way should be construed as financial advice or a recommendation to buy or sell any stock. The author is not a financial advisor. Please always do further research and do your own due diligence before making any investments. Every effort has been made to present the data/information accurately; however, the author does not claim 100% accuracy. The stock portfolios presented here are model portfolios for demonstration purposes. For the complete list of our LONG positions, please see our profile on Seeking Alpha.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.