By Marc Lichtenfeld Whenever I write about how investing in bond funds is a losing strategy, I always receive emails asking, “What about closed-end bond funds?” My answer is an admittedly unsatisfying “it depends.”
For those who are unfamiliar with closed-end funds, here’s a brief primer…
A closed-end fund is like a mutual fund, except it trades very differently.
A mutual fund trades only at its net asset value (NAV) at the end of the day.
So if a mutual fund has $100 million in assets and 10 million shares outstanding, it will trade for $10 per share. If the next day its assets climb to $105 …read more
