Mutual Funds

Closed-Ended Mutual Funds

How do closed-ended funds differ from exchange traded funds?

Both closed-ended funds and ETFs trade their shares on various exchanges. But ETFs generally track and try to mimic the performance of some benchmark exchange, such as the performance of the Dow, or the Standard & Poor’s 500, making them comparatively more diverse than some closed-ended funds, and giving them relatively lower fees, since the ETFs are not trading as actively as closed-ended funds.


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