A guide to investing in closed-end funds

Closed-end funds (“CEFs”) are actively managed mutual funds that trade on an exchange like a stock. CEFs can play an important role in a diversified portfolio providing the potential for income and
capital appreciation.

Essential CEF data
  CEF press releases

 


What are the advantages of closed-end funds?

Trade like
a stock

CEFs are typically listed on a major exchange such as the New York Stock Exchange which provides the benefit of intra-day liquidity for investors.

Access unique investment opportunities

The “closed” structure allows portfolio managers to access a broader opportunity set including less liquid investments that offer higher income and return potential.

Enhanced income potential through the use of leverage

CEFs can borrow money to increase exposure to investments with the goal of enhancing income and capital appreciation potential.

Why BlackRock?

BlackRock has over 25 year of experience managing closed-end funds and, as of June 30, 2017, advised a registered closed-end family of 74 exchange-listed active funds with approximately $46 billion in assets.

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Types of closed-end funds

Tax-exempt municipal bond funds

Primarily invest in tax-exempt municipal bonds and may utilize leverage to enhance income potential. BlackRock offerings include national and state specific funds.

Taxable fixed
income funds

Invest in one or more fixed income sectors and may utilize leverage to enhance income potential. BlackRock offerings include investment grade, high yield, bank loan and multi-sector funds.

Equity funds

Invest in stocks and may utilize an option overwrite strategy to enhance income potential. BlackRock offerings include domestic, international and global and sector specific funds.

Essential CEF data

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