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Finance Focus Video: Closed-end Funds vs. ETFs

Today’s topic is “What are closed end funds and how do they differ from ETFs”.


Exchange-traded funds – It’s a security that trades like a stock, in real time on an exchange, generally has passive management, historically meant to track an index, low expense ratio.


They come in a host of flavors in every style from Morningstar-by market cap, by style, by asset class (stocks or bonds), by investment technique.


Closed end funds may trade at discount or premium to NAV, actively managed, leveraged to provide higher yields, higher expense ratio due to the nature of active management.


What type of investor should hold? An ETF or a closed-end Fund? Dividends Bond replacement? No guarantee of principal Track an index? Cost vs performance-indexing Core satellite strategy


Of course this is an important topic for you and it requires more than a short video and a website. For more financial insight, go to www.samalingroup.com/financefocus