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Morningstar, Inc. Commentaries

Income-Starved Investors Are Flocking to Closed-End Funds

Oct 13, 2016
Click here to access Income-Starved Investors Are Flocking to Closed-End Funds

Over the past year, income-starved investors have flooded in to closed-end funds. Closed-end funds typically offer very attractive yields compared to mutual funds thanks to their use of leverage. The average long-term municipal bond closed-end fund, for example, had a distribution rate of 5% at the end of September. The mutual fund average was just 3%. 

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Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individuals, financial advisors, and institutions.

Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services and has approximately $195 billion in assets under advisement or management as of Sept. 30, 2012. We have operations in 27 countries.