Closed-end funds (“CEFs”) are investment company products that raise money in an initial offering, but unlike mutual funds or exchange-traded funds, they do not continuously offer shares for sale. CEF shares trade on an exchange and their price may differ from the net asset value of the underlying securities owned by the fund. These products may experience increased volatility compared to other types of investment funds and there are some additional restrictions on liquidity.
A CEF’s prospectus contains its investment objectives, risks, charges, expenses, and other important information, and should be read and carefully considered before investing.
Additional regulatory information about these products:
Closed-End Fund Distributions: Where is the Money Coming From?