This “Yield Trap” Is About To Dive 38% (Sell Now!)

 | Apr 09, 2018 06:28AM ET

It’s everyone’s dream—a double-digit yield. And what’s dreamier than a 13.6% payout?

That’s exactly what the little-known, small fund I’m going to show you today promises.

And you should run away fast.

Before I explain why, let me tell you what this fund does and how it works.

I’m talking about the Stone Harbor Emerging Markets Income Fund (EDF (PA:EDF)), a tiny fund focusing on developing countries that has just $229.4 million in assets under management.

For the last 8 years, the fund’s managers have been doing their best to make it grow (and keep its juicy 13.6% payout coming) by choosing the best stocks, bonds, foreign currencies and other assets in emerging markets. A quick glance at a chart makes it look like EDF is doing pretty well:

A Deceiving Chart