FAQ Content

I. Are Bond Mutual Funds Right for Me? Is bond mutual fund investing right for me? Bond mutual funds—like all mutual funds—involve investment risk, including the possible loss of principal. A fundamental principle of investing known as the risk/reward tradeoff means that when you make...

Why do investors use ETFs? Exchange-traded funds (ETFs) offer investors a number of benefits, which can include the following: diversification trading throughout the day, with transparent pricing cost-efficiency tax-efficiency exposure to particular geographic regions or industry...

How are ETFs similar to mutual funds? Mutual funds and exchange-traded funds (ETFs) share similarities and can serve similar purposes for investors. Both, for example, can provide the basic building blocks of investors’ portfolios. An ETF is similar to a mutual fund in that it offers...

This document contains FAQs about closed-end funds, including information related to failed auctions for auction market preferred stock. I. General Information About Closed-End Funds What are closed-end funds? Closed-end funds are one of four types of investment companies registered...

What is securities lending? Securities lending is one of the myriad investment techniques used by funds to improve the return on their portfolios for the benefit of their shareholders. The term refers to the lending of a security by one party (sometimes called the beneficial owner) to...

What is securities lending? Securities lending is one of the myriad investment techniques used by funds to improve the return on their portfolios for the benefit of their shareholders. The term refers to the lending of a security by one party (sometimes called the beneficial owner) to...

A. Fund Boards Follow Strong Governance Practices to Best Serve Shareholders Fund boards are robustly independent. Federal securities laws require that at least 40 percent of the directors on a fund board be “independent,” as defined by SEC rule. In practice, the proportion of...

I. Introduction to Mutual Fund Boards and Directors II. Duties and Responsibilities III. Service on a Mutual Fund Board IV. Board Structure and Practices I. Introduction to Mutual Fund Boards and Directors What is a mutual fund and how is it structured? A mutual fund is a pool of...