Knowledge Tree
closed-end funds
Also known as: closed-end fund
Facts (7)
Sources
A Complete Guide to Investment Vehicles | Money for The Rest of Us moneyfortherestofus.com Oct 2, 2025 7 facts
claimStocks, ETFs, and closed-end funds have market prices determined by trades on an exchange in the secondary market.
claimPooled investment vehicles, such as open-end mutual funds, closed-end funds, and exchange-traded funds (ETFs), are the most common type of indirect investment.
claimInvestors seeking higher returns can complement index mutual funds and ETFs with closed-end funds selling at greater than average discounts and actively managed mutual funds.
claimActively managed open-end mutual funds and closed-end funds are the public indirect investment vehicles with the highest costs due to management fees for portfolio selection and higher trading costs.
claimSome public investment vehicles, such as ETFs and closed-end funds, trade on an exchange where the exchange matches buyers with sellers.
claimClosed-end funds do not have a mechanism to narrow the discount or premium to the net asset value.
claimETFs and closed-end funds, which are priced in the secondary market, can trade at a discount or premium to their net asset value.