Investors have flocked to ETFs in recent years, pouring hundreds of billions of dollars into them. But most ignore another type of fund that trades on exchanges—closed-end mutual funds. Is that a mistake?
That depends on an investor’s goals and risk tolerance. The massive move into ETFs has been driven largely by low fees and a growing acceptance of the idea that a fund that aims to match the performance of a market index is likely to do better in the long run than an actively managed fund that tries to outperform the market….