Other closed-end equity funds invest in a combination of fixed income and equity securities, including bank loans and blended combination of growth and income equities. These funds may emphasize current income, capital appreciation, or some combination of income and capital appreciation.
Senior loan participation Closed-End ETFs seek to provide current income by investing in senior-secured floating or variable rate bank loans. The yields on these loans changes as interest rates change, reducing the impact of interest rates on the underlying fund net-asset values. Senior loans are syndicated commercial bank loans made to corporations, partnerships, and other entities. Such loans may finance leveraged buyouts or merger and acquisition activity, as well as general corporate activities. These funds may also leverage their assets through the issuance of debt.
Other growth and income Closed-End ETFs seek to provide current income, capital appreciation, or some combination of income and capital appreciation, by investing in a variety of domestic and foreign securities. These securities may include common and preferred stock, corporate debt, including high-yield and convertible bonds, and government issued or government-backed issues.
Growth and income funds may build portfolios that consist of stocks issued by a broad range of companies, diversified across industries, countries, regions and economic sectors, or they can focus on specific investment styles. Some funds may use an opportunistic investment approach, focusing on companies that are out-of-favor in the marketplace, or in out-of-favor industries, and over-leveraged companies with promising longer-term prospects.
