BMEZ: NAV Decline Persists, Still Underperforming Peers

The BlackRock Health Sciences Term Trust (BMEZ) continues to struggle — its unsustainably high distributions are eating away at its net asset value (NAV), prompting the author to maintain a “Sell” rating. Though BMEZ is currently offering an attractive yield (~ 8.4%), that payout isn’t backed by net investment income, meaning the fund is increasingly relying on return of capital — a red flag for long‑term investors. Despite having broad exposure to the healthcare sector and using options strategies, BMEZ is underperforming comparable funds such as THQ and BME in both total return and capital preservation. To stabilize, BMEZ likely needs a significant reduction in its distribution — which would make THQ or BME more appealing choices for investors seeking income with less risk of NAV erosion. #BMEZ #ClosedEndFund #NAVRisk #IncomeInvesting #SlimScan #GrowthStocks #CANSLIM