Introduction to Closed-End Funds

Closed-end funds have features similar to both stocks and mutual funds. Like stocks, closed-end funds are traded on the secondary market through a broker or on an exchange. Like mutual funds, they are a portfolio of investments in which investors buy shares of the fund. But the unique features of closed-end funds make them a little more complex and worth studying before you invest in them. Because closed-end funds trade on an exchange, they are sometimes called exchange-traded funds (ETFs).