Morningstar, Inc. Commentaries
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%.