- Most closed-end funds offer a discount. You can invest in a closed-end fund with a share price lower than the net asset value.
- If your closed-end fund is actively managed to outperform a benchmark index, this could mean higher fees and more taxes.
- Compare the advantages and disadvantages of closed-end funds with exchange-traded funds (ETFs).
Both of these funds sell shares to investors and use the money invested to buy securities that match their investment missions. But that’s where the similarities end.
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