TYG: This Fund Sacrifices A Lot Of Performance For The Yield

Tortoise Energy Infrastructure Corp. offers a 13.27% yield but has significantly underperformed both the energy sector and peer funds year-to-date. TYG's portfolio has significant exposure to electric utilities and renewables, limiting its ability to capitalize on strong midstream energy sector performance.

Distribution coverage relies on net unrealized gains rather than net investment income, posing risks if market conditions deteriorate. Shares trade at a 6.27% discount to NAV, but this is narrower than the fund’s five-year average discount, reducing relative valuation appeal.