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Original explanations written for this site, with clearly labelled hypothetical examples. No individual author credentials are claimed; each article shows its publication and last substantive-update dates and is reviewed under the editorial policy. Start with the glossary (48 terms) if a word is unfamiliar.
What is a closed-end fund?
How a closed-end fund is structured, why it trades on an exchange, and how that differs from an open-end mutual fund.
Closed-end funds vs. ETFs
Both trade on an exchange, but the creation/redemption mechanism that keeps an ETF near NAV does not exist in a CEF.
Net asset value (NAV)
What NAV measures, when it is published, and why our NAV date is shown next to every premium/discount figure.
Premiums and discounts to NAV
The signed premium/discount calculation, why discounts persist, and why a discount is not a guaranteed return.
Discount Z-scores
How the Z-score compares today's discount with the fund's own history, and the sample rules we use before showing one.
Leverage in closed-end funds
How CEFs borrow, what the leverage percentage means, why the denominator matters, and how leverage changes risk.
Expense ratios and fees
Management fees, other expenses, interest on leverage, and why the basis of each percentage matters when comparing funds.
Distribution rates vs. yield
Why a distribution rate is not an income yield, the four measures this site shows separately, and how specials are handled.
Return of capital in distributions
What return of capital means in accounting and tax terms, when it is destructive, and when it is not.
NII coverage and UNII
Net investment income coverage and undistributed net investment income, where they apply and where they do not.
Price return, NAV return and total return
Four series that are routinely confused, and the reinvestment convention we use.
Managed distribution policies
Level-rate and percentage-of-NAV policies, why sponsors adopt them, and what to check.
Municipal bond closed-end funds
National vs. single-state funds, leverage in muni CEFs, and the tax-equivalent-yield calculation.
International and global closed-end funds
Mandates, currency exposure, and why we show the actual country allocation instead of trusting the name.
Liquidity and trading closed-end funds
Why average dollar volume matters, bid–ask spreads, and the difference between share volume and fund flows.
Term and target-term funds
What a termination date does and does not promise.
Tender offers and buybacks
How issuer tender offers work, proration, and what a repurchase programme means for the discount.
Rights offerings
How rights offerings raise capital, why they are usually dilutive, and what the terms mean.
Distribution reinvestment plans
How DRIPs price reinvested shares, why it differs when a fund trades at a discount, and what our calculators assume.
How to read a closed-end fund shareholder report
Where to find NAV, leverage, expenses, UNII and distribution sources in the annual and semi-annual reports.
ReinvestCapture™: what reinvested distributions actually buy
A closed-end fund at a discount lets reinvested distributions buy more asset value than they cost. The ReinvestCapture™ rate measures how much, and what it does not tell you.
Glossary
48 closed-end fund terms, each linked to the article that explains it.