What Is a Closed-End Fund? The ABCs of CEFs

Closed-end funds (CEFs) are powerful retirement tools that don't get much attention. We'll show you the basics, including what a CEF is, how they work, and their pros and cons.

Pie chart representing a closed-end fund (CEF)
(Image credit: Getty Images)

Closed-end funds (CEFs) are an attractive option for income investors who want a combination of a high amount of passive income and diversification.

Too bad you rarely hear about them.

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Michael Foster
Contributing Writer, Kiplinger.com
Michael Foster is the Lead Research Analyst for Contrarian Outlook, where he writes CEF Insider. He has written on high-income assets, dividends, closed-end funds and exchange-traded funds for a number of publications including Forbes, Bankrate and SeekingAlpha. Michael finished his PhD in 2008 and has been advising investors since 2011.