Closed-end funds are very similar to exchange-traded funds, but with one big difference. Like ETFs, they hold pools of assets, but unlike ETFs, they trade more like a stock because they have a fixed number of shares, and sellers need to find a willing buyer if they want to sell their shares. Closed-end funds also have another similarity to stocks, which is that they can be subject to activism.
Closed-end funds: the basics
Boaz Weinstein of Saba Capital Management gave a presentation on closed-end funds at the recent Robin Hood conference. He described their activism in closed-end funds as the "most compelling thing we do."
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