April 2021
Closed-End Funds vs
Mutual Funds
Structure and Performance
USWAM0421U/S-1623235-1/9
Closed-End vs. Mutual Funds
Share Treatment | Closed-End Funds | Mutual Funds |
Exchange Listed | Yes | No |
Liquidity | Intraday (shares trade on an exchange) | Market Close |
Return Focus | Primarily Current Income / Total Return | Current Income/Total Return |
Total shares are determined by initial demand | ||
Shares Offered | during the initial public offering("IPO"). | Continuously offered. |
Shares can be bought and sold in secondary | ||
market post IPO. | ||
Shares Redeemed | No. Shares are bought and sold in the | Yes. Once a day, at the close of business. |
secondary market.1 | ||
Based on market supply and demand. Priced | ||
Shares Priced | at either a premium or discount to net asset | Price is set daily by NAV. |
value ("NAV"). | ||
Use of Leverage | Prevalent among CEFs | Can use leverage, but employed much less |
than in CEFs | ||
Share Classes | Not typical in CEF structure | Multiple share classes with different expense |
structures | ||
Illiquid Security Exposure | Yes | Limited |
1. Certain closed-end funds may make periodic tender offers for shares.
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Performance of Closed-End Funds vs. Mutual Funds
3-Year Annualized Total Return of CEFs & Mutual Funds Lipper Classifications (as of 3/31/2021)
+53 |
bps |
12.00
-141 | -638 | -154 | +147 |
bps | bps | bps | bps |
10.94 |
+60 | +149 |
bps | bps |
10.00 | 9.40 | |||||
8.00 | ||||||
6.37 | 6.24 | 6.40 | 5.80 | 6.16 | ||
6.00 | ||||||
4.96 | 4.77 | 4.67 | ||||
4.00 | 3.54 | |||||
3.01 | 3.02 | |||||
2.00 | ||||||
0.00 | ||||||
-2.00 | ||||||
-4.00 | -3.36 | |||||
-6.00 | ||||||
Bank Loan | Emerging Market | Emerging Market | Equity Income | General Bond | High Yield | Municipal | |||
Equity | Debt | ||||||||
CEF (NAV) | Mutual Fund | ||||||||
Source: Lipper LANA. Data as of 3/31/21. Returns show the median NAV return for CEFs and the median NAV return for Mutual Funds. Past performance is no indication of future results. Performance shown is the average for the funds in the category; individual fund performance could have been positive or negative. CEFs represented by the following Lipper categories, Municipal Debt represented by General & Insured Municipal Funds (Levered), High Yield represented by High Yield Funds (Levered), Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Options Arbitrage/Opt Strategies Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Mutual Funds represented by the following categories, Municipal Debt represented by General & Insured Municipal Funds , High Yield represented by High Yield Funds, Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Equity Income Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Any funds not incepted in this time period will not be included in return numbers.
USWAM0421U/S-1623235-3/9
3
Performance of Closed-End Funds vs. Mutual Funds
5-Year Annualized Total Return of CEFs & Mutual Funds Lipper Classifications (as of 3/31/2021)
+167 |
bps |
14.00
-265 | -245 | -187 | ||
bps | bps | bps | ||
+459 | +215 | +115 |
bps | bps | bps |
12.00 | 11.88 | 11.46 | |||
9.59 | |||||
10.00 | 9.23 | 9.38 | 8.96 | ||
8.00 | |||||
6.81 | |||||
6.00 | 5.72 | ||||
4.90 | 4.79 | 4.51 | |||
4.05 | |||||
4.00 | |||||
2.45 | 3.36 | ||||
2.00 | |||||
0.00 | |||||
Bank Loan | Emerging Market | Emerging Market | Equity Income | General Bond | High Yield | Municipal | |||
Equity | Debt | ||||||||
CEF (NAV) | Mutual Fund | ||||||||
Source: Lipper LANA. Data as of 3/31/21. Returns show the median NAV return for CEFs and the median NAV return for Mutual Funds. Past performance is no indication of future results. Performance shown is the average for the funds in the category; individual fund performance could have been positive or negative. CEFs represented by the following Lipper categories, Municipal Debt represented by General & Insured Municipal Funds (Levered), High Yield represented by High Yield Funds (Levered), Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Options Arbitrage/Opt Strategies Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Mutual Funds represented by the following categories, Municipal Debt represented by General & Insured Municipal Funds , High Yield represented by High Yield Funds, Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Equity Income Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Any funds not incepted in this time period will not be included in return numbers.
USWAM0421U/S-1623235-4/9
4
Performance of Closed-End Funds vs. Mutual Funds
10-Year Annualized Total Return of CEFs & Mutual Funds Lipper Classifications (as of 3/31/2021)
+168 | +53 |
bps | bps |
12.00 |
-284 | -128 | |
bps | bps | |
+253 | +160 | +277 |
bps | bps | bps |
10.10 | |||
10.00 | |||
8.82 | |||
8.00 | 7.84 | 7.45 | |
6.95 | |||
6.00 | |||
5.07 | 5.31 | 5.35 | |
4.68 | |||
4.32 | 4.28 | ||
4.00 | 3.39 | 3.79 | |
2.00 | 1.44 | ||
0.00 | |||
Bank Loan | Emerging Market | Emerging Market | Equity Income | General Bond | High Yield | Municipal | |||
Equity | Debt | ||||||||
CEF (NAV) | Mutual Fund | ||||||||
Source: Lipper LANA. Data as of 3/31/21. Returns show the median NAV return for CEFs and the median NAV return for Mutual Funds. Past performance is no indication of future results. Performance shown is the average for the funds in the category; individual fund performance could have been positive or negative. CEFs represented by the following Lipper categories, Municipal Debt represented by General & Insured Municipal Funds (Levered), High Yield represented by High Yield Funds (Levered), Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Options Arbitrage/Opt Strategies Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Mutual Funds represented by the following categories, Municipal Debt represented by General & Insured Municipal Funds , High Yield represented by High Yield Funds, Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Equity Income Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Any funds not incepted in this time period will not be included in return numbers.
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5
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BlackRock Capital Allocation Trust published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 06:11:00 UTC.