Because of their distinctive structure, closed-end funds could offer investors a leg up in the muni market, but be sure to get comfortable with the quirks of CEFs before investing.
A recent Morningstar survey found that current closed-end fund investors are using the vehicles for retirement income, but potential investors desire more education.
As fixed-income CEFs appreciate, investors seeking yield should be cognizant of bond rollover into lower-yielding assets as well as the added risk of leverage, says RiverNorth's Patrick Galley.