Closed-end funds provide a better balance between liquidity and returns episode artwork

EPISODE · Sep 24, 2021 · 12 MIN

Closed-end funds provide a better balance between liquidity and returns

from The NAVigator

Erik Herzfeld, president of Thomas J. Herzfeld Advisors, says that investors are sacrificing returns for liquidity when they choose traditional mutual funds and ETFs instead of closed-end funds. The issue -- which arises due to the structures of the different fund types -- is a problem because most investors never even consider it; Herzfeld notes that most investors would be willing to trade liquidity -- to lock in for longer -- if it meant for better returns from fixed-income on long-term investments.

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Closed-end funds provide a better balance between liquidity and returns

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This episode was published on September 24, 2021.

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Erik Herzfeld, president of Thomas J. Herzfeld Advisors, says that investors are sacrificing returns for liquidity when they choose traditional mutual funds and ETFs instead of closed-end funds. The issue -- which arises due to the structures of the...

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