Two Funds Holding Identical Stocks: One Is a Steal, the Other Poses Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Source: NASDAQ.COM
Market Performance and Investor Sentiment: The S&P 500 has already gained nearly 10% in 2025, with strong earnings growth driven by AI productivity and economic resilience, although investor sentiment is shifting from "extreme greed" to "greed."
Valuation Concerns: The S&P 500's price-to-earnings ratio has risen to 25.9, raising caution among investors as it approaches levels seen before past market downturns.
Closed-End Fund Analysis: The Gabelli Equity Trust (GAB) is currently overpriced despite its high dividend yield of 10.1%, while the Adams Diversified Equity Fund (ADX) offers a better value at an 8% discount and has outperformed GAB over the long term.
Investment Strategy Recommendation: Investors are encouraged to buy undervalued closed-end funds and sell those trading at a premium, as this strategy has historically provided strong profits and reliable dividends.
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Analyst Views on ADX
Wall Street analysts forecast ADX stock price to rise
0 Analyst Rating
0 Buy
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0 Sell
Current: 23.170
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Averages
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Current: 23.170
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About ADX
Adams Diversified Equity Fund, Inc. (the Fund) is a diversified, closed-end investment company. The Fund is an internally managed fund whose investment objectives are preservation of capital, the attainment of reasonable income from investments, and an opportunity for capital appreciation. The Fund is an internally managed large-cap United States equity fund. The Fund invests at least 80% of its assets in highly liquid Standard and Poor's 500 (S&P 500) stocks. The Fund may invest up to 20% of assets in commodities (other than physical commodities), including swaps. The Fund invests in various sectors, such as communication services, consumer discretionary, consumer staples, energy, financials, health care, industrials, real estate, utilities, and information technology (IT).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Adams Diversified Equity Fund (ADX) Reports 18.9% Return for 2025
- Investment Return Highlight: Adams Diversified Equity Fund achieved an 18.9% net asset return for 2025, outperforming the S&P 500's 17.9% and the Morningstar U.S. Large Blend Category's 16.2%, showcasing the fund's robust investment capabilities.
- Market Price Performance: The fund's total return on market price for 2025 was 25.7%, reflecting investor confidence and indicating its resilience amid market fluctuations.
- Dividend Yield: The fund distributed $1.85 per share in income dividends and realized capital gains, resulting in an annual distribution rate of 8.1%, providing investors with stable cash flow and enhancing the appeal of long-term holdings.
- Net Asset Value Growth: As of December 31, 2025, the fund's net assets reached $3.03 billion, a 13.7% increase from $2.66 billion in 2024, demonstrating effective asset management and growth potential.
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- Strong Market Performance: The fund's market price return was 9.9%, exceeding both the S&P 500 Energy and Materials sectors, while providing an annual distribution rate of 8.4%, further enhancing shareholder returns.
- Net Asset Value Growth: As of December 31, 2025, the fund's net assets reached $662,418,619, an increase from $636,334,398 in 2024, reflecting the effectiveness of the fund's management and investment strategies.
- Major Holdings Distribution: The fund's top ten holdings account for 64.1% of net assets, with Exxon Mobil representing 23.9%, indicating a concentrated investment strategy in the energy sector aimed at capitalizing on industry recovery opportunities.
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- Market Price Performance: The fund's total return on market price was 25.7%, significantly surpassing peers, reflecting high investor confidence and enhancing its competitive position in the market.
- Dividend Yield: In 2025, the fund paid $1.85 per share in income dividends, resulting in an annual distribution rate of 8.1%, providing stable cash flow for long-term investors and boosting investor confidence.
- Net Asset Value Growth: As of December 31, 2025, the fund's net assets reached $3.03 billion, a 13.7% increase from $2.66 billion in 2024, demonstrating effective asset management and market appeal.
See More
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- Data Center Investment Growth: Data center spending is projected to grow at about 30% in 2025, reaching $40 billion, although the growth rate has moderated compared to 2024, reflecting ongoing market investment in infrastructure.
- Bubble Discussion: Despite widespread discussions about an AI bubble, analysts argue that NVIDIA's valuation is not inflated, suggesting the company is transitioning from undervalued to fairly valued.
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- MAIN's Strong Performance: Main Street Capital Corporation (MAIN) currently yields around 5% and has approached 7% over the past 12 months due to frequent special dividends, showcasing its competitive edge among BDCs.
- Growth Potential of CEFs: Closed-End Funds (CEFs) have an average yield of about 8% and have shown a total return of over 14% in 2023, closely trailing the S&P 500's 17.5%, indicating their attractiveness in a volatile market.
- Future Investment Strategy: As market volatility is expected to increase in 2026, more investors are likely to turn to CEFs, with current discounts narrowing from 8% to 5.3%, presenting potential price appreciation opportunities for investors.
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Performance of ASA Fund: The ASA Gold & Precious Metals Fund has seen a remarkable 172% increase in 2025, but it is cautioned against as it yields only 0.1% and has historically underperformed compared to the S&P 500 and gold prices.
Alternative High-Yield CEFs: The article suggests three high-yield closed-end funds (CEFs) that outperform ASA in terms of long-term performance and income, including the Adams Diversified Equity Fund, Liberty All-Star Equity Fund, and PIMCO Corporate & Income Opportunity Fund.
Future Investment Focus: Looking ahead to 2026, the author plans to invest in AI-focused CEFs that offer high dividends, indicating a shift away from gold investments and a belief in ongoing productivity growth in the economy.
See More
Adams Diversified Equity Fund (ADX) Reports 18.9% Return for 2025
- Investment Return Highlight: Adams Diversified Equity Fund achieved an 18.9% net asset return for 2025, outperforming the S&P 500's 17.9% and the Morningstar U.S. Large Blend Category's 16.2%, showcasing the fund's robust investment capabilities.
- Market Price Performance: The fund's total return on market price for 2025 was 25.7%, reflecting investor confidence and indicating its resilience amid market fluctuations.
- Dividend Yield: The fund distributed $1.85 per share in income dividends and realized capital gains, resulting in an annual distribution rate of 8.1%, providing investors with stable cash flow and enhancing the appeal of long-term holdings.
- Net Asset Value Growth: As of December 31, 2025, the fund's net assets reached $3.03 billion, a 13.7% increase from $2.66 billion in 2024, demonstrating effective asset management and growth potential.
See More
Adams Natural Resources Fund Reports 9.4% Return for 2025, Outperforming Benchmark
- Investment Return Highlight: The Adams Natural Resources Fund achieved a net asset return of 9.4% in 2025, outperforming its benchmark return of 9.1%, demonstrating stability in a weak energy market and boosting investor confidence.
- Strong Market Performance: The fund's market price return was 9.9%, exceeding both the S&P 500 Energy and Materials sectors, while providing an annual distribution rate of 8.4%, further enhancing shareholder returns.
- Net Asset Value Growth: As of December 31, 2025, the fund's net assets reached $662,418,619, an increase from $636,334,398 in 2024, reflecting the effectiveness of the fund's management and investment strategies.
- Major Holdings Distribution: The fund's top ten holdings account for 64.1% of net assets, with Exxon Mobil representing 23.9%, indicating a concentrated investment strategy in the energy sector aimed at capitalizing on industry recovery opportunities.
See More
Adams Diversified Equity Fund (ADX) Reports 18.9% Return for 2025, Outperforming Benchmark
- Investment Return Highlight: Adams Diversified Equity Fund achieved an 18.9% net asset return in 2025, outperforming the S&P 500's 17.9% and leading its peer group by 2.4%, showcasing its strong investment management capabilities.
- Market Price Performance: The fund's total return on market price was 25.7%, significantly surpassing peers, reflecting high investor confidence and enhancing its competitive position in the market.
- Dividend Yield: In 2025, the fund paid $1.85 per share in income dividends, resulting in an annual distribution rate of 8.1%, providing stable cash flow for long-term investors and boosting investor confidence.
- Net Asset Value Growth: As of December 31, 2025, the fund's net assets reached $3.03 billion, a 13.7% increase from $2.66 billion in 2024, demonstrating effective asset management and market appeal.
See More
NVIDIA Stock Pullback Amid Growing AI Bubble Concerns
- Stock Performance Analysis: NVIDIA's stock showed significant performance in 2023, and while growth has moderated in 2024, its P/E ratio is comparable to Costco, indicating investor confidence in its future growth.
- Data Center Investment Growth: Data center spending is projected to grow at about 30% in 2025, reaching $40 billion, although the growth rate has moderated compared to 2024, reflecting ongoing market investment in infrastructure.
- Bubble Discussion: Despite widespread discussions about an AI bubble, analysts argue that NVIDIA's valuation is not inflated, suggesting the company is transitioning from undervalued to fairly valued.
- Investment Strategy Recommendation: In the current market environment, investors are advised to maintain diversified investments, particularly focusing on high-dividend closed-end funds to secure stable cash flow and capital appreciation.
See More
BDC Investment Opportunities: MAIN Achieves 5% Yield
- BDC Investment Advantages: Business Development Companies (BDCs) must distribute 90% of their income as dividends to investors, providing a stable cash flow that enhances their market appeal, especially in volatile times.
- MAIN's Strong Performance: Main Street Capital Corporation (MAIN) currently yields around 5% and has approached 7% over the past 12 months due to frequent special dividends, showcasing its competitive edge among BDCs.
- Growth Potential of CEFs: Closed-End Funds (CEFs) have an average yield of about 8% and have shown a total return of over 14% in 2023, closely trailing the S&P 500's 17.5%, indicating their attractiveness in a volatile market.
- Future Investment Strategy: As market volatility is expected to increase in 2026, more investors are likely to turn to CEFs, with current discounts narrowing from 8% to 5.3%, presenting potential price appreciation opportunities for investors.
See More
"Beware of 2025's Top CEF: Discover Alternative Investments Offering 9% Dividends"
Investment Risks: The article highlights the volatility in investing, using the example of the mortgage banking industry during the subprime crisis and emphasizing the importance of humility and diversification in investment strategies.
Performance of ASA Fund: The ASA Gold & Precious Metals Fund has seen a remarkable 172% increase in 2025, but it is cautioned against as it yields only 0.1% and has historically underperformed compared to the S&P 500 and gold prices.
Alternative High-Yield CEFs: The article suggests three high-yield closed-end funds (CEFs) that outperform ASA in terms of long-term performance and income, including the Adams Diversified Equity Fund, Liberty All-Star Equity Fund, and PIMCO Corporate & Income Opportunity Fund.
Future Investment Focus: Looking ahead to 2026, the author plans to invest in AI-focused CEFs that offer high dividends, indicating a shift away from gold investments and a belief in ongoing productivity growth in the economy.
See More
