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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