Yes. BDJ has not kept up with the S&P.
Spell Bound
1

Thanks for the response. To respond to some of your points:

I judged BDJ against the S&P 500 because the Fund holds large cap stocks. Over 90% of its current equity holdings (by weight) are in stocks that are also in the S&P 500.

I don’t know if it’s any fairer to pick a 3 or 5 year interval than the numbers since inception? I do know that the Kiplinger’s article highlighted the Fund’s strong 2008 performance:

“In 2008, for instance, the fund declined by 17.2% — less than half the loss sustained by the S&P 500. “

Yes, I’m sure there are people who are happy to invest in BDJ and take a Return of Capital and not have to sell anything. I’m also sure there are people who are happy to take the much larger Return of Capital from the Cornerstone Fund and not have to sell anything. There are tax benefits.

The bottom line for me is that I don’t think all investors necessarily understand what they are getting in either fund. The header in Kiplinger’s reads: “3 Great Closed-End Funds to Earn 7% — 9%.” I do not believe that BDJ is “earning” 7% — 9%. I don’t believe all investors know what they are buying, and I’m doing my part to point out the potential confusion.

One clap, two clap, three clap, forty?

By clapping more or less, you can signal to us which stories really stand out.