| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 228.12 | 1889 |
| Intrinsic value (DCF) | 24.01 | 109 |
| Graham-Dodd Method | 15.20 | 33 |
| Graham Formula | 15.26 | 33 |
DTF Tax-Free Income 2028 Term Fund Inc. (NYSE: DTF) is a closed-end fixed income mutual fund managed by Duff & Phelps Investment Management Co. and launched by Virtus Investment Partners, Inc. The fund specializes in investment-grade tax-exempt municipal bonds, primarily focusing on utility obligations across sectors such as water and sewer, electric utilities, prerefunded utilities, pollution control, and nonutilities. With a market capitalization of approximately $78.2 million, DTF provides investors with tax-free income, making it particularly attractive to high-net-worth individuals and tax-sensitive investors. The fund, domiciled in the U.S. and established in 1991, is structured as a term fund set to liquidate in 2028, offering a defined investment horizon. Its conservative approach to fixed-income investing, combined with a diversified portfolio, positions it as a stable income-generating vehicle in the municipal bond market.
DTF Tax-Free Income 2028 Term Fund Inc. presents a niche investment opportunity for income-focused investors seeking tax-exempt municipal bond exposure. The fund’s low beta (0.353) suggests minimal correlation with broader equity markets, making it a defensive holding. With a trailing dividend yield of approximately 6.5% (based on a $0.39 annual dividend per share and recent pricing), DTF offers competitive tax-advantaged income. However, its term structure (2028 liquidation) introduces reinvestment risk, and the absence of leverage (zero total debt) may limit yield enhancement opportunities. The fund’s net income of $4.23 million (FY 2024) and EPS of $0.60 reflect stable operations, but its lack of operating cash flow data warrants caution. Investors should weigh its tax benefits against interest rate sensitivity and sector concentration in utilities.
DTF’s competitive advantage lies in its specialized focus on investment-grade tax-exempt utility bonds, a segment with relatively lower default risk compared to broader municipal debt. Managed by Duff & Phelps, the fund benefits from institutional-grade credit analysis and sector expertise. Its term structure (2028) differentiates it from perpetual closed-end funds, appealing to investors seeking a defined exit. However, DTF faces competition from larger, more diversified municipal bond funds with higher liquidity and active management strategies. The fund’s zero leverage policy contrasts with peers that employ modest leverage to boost yields, potentially limiting returns. Its small size ($78.2M AUM) may also result in higher expense ratios relative to scale players. Sector-wise, its utility-heavy portfolio (water, electric) offers stability but may lag during infrastructure-driven rallies in transportation or healthcare bonds. DTF’s tax-free income niche is defensible, but its passive approach and term limit could deter investors seeking flexibility.