5 keys to trading closed-end funds
Everyone knows about traditional, open-end mutual funds. Yet when it comes to trading vehicles, what many don’t realize is that closed-end funds often offer better opportunities to profit than either open-end funds or ETFs. Because open-end funds always sell at their NAV (net asset value), you can never buy or sell them at a discount or premium to NAV. With closed-end funds, you can trade them at either a premium or a discount to their NAV.
This closed-end fund arbitrage opportunity gives investors a couple of distinct advantages, and this is why I prefer trading closed-end funds to open-end mutual funds. Let’s take a look at how this works.
Special Stock Alert: The New “Wal-Mart” for Cash Strapped Consumers. This remarkable company has exploited the recession as no other. Our profits could be huge. But Wall Street still doesn’t get it. Short-term, we’re looking to triple our money. Get all the details immediately.
Here are 5 keys to trading closed-end funds.