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Closed-End Funds and Their Use of Leverage: FAQs

General Information About Closed-End Funds What are closed-end funds (CEFs)? There are four types of closed-end funds (CEFs): traditional funds, interval funds, tender offer funds, and business...

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ETFs and Retail Investors: FAQs

Why do investors use ETFs? Exchange-traded funds (ETFs) offer investors a number of benefits, which can include: diversification trading throughout the day, with transparent pricing cost-efficiency...

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How ETFs Compare with Other Investments: FAQs

How are ETFs similar to mutual funds? Mutual funds and exchange-traded funds (ETFs) share similarities and can serve similar purposes for investors. Both, for example, can provide the basic building...

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The US ETF Market: FAQs

How many Americans own ETFs? An estimated 19.8 million, or about 15%, of US households held ETFs in 2025 . Of households that owned exchange-traded funds (ETFs), 86% also owned mutual funds. How many...

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ETF Basics and Structure: FAQs

What is an ETF? An exchange-traded fund (ETF) is a pooled investment vehicle with shares that trade intraday on stock exchanges at a market-determined price. Investors may buy or sell ETF shares...

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529 Plans: FAQs

Frequently Asked Questions About 529 Plans What are 529 plans? Section 529 plans, named for the section of the tax code that provides for their favorable tax treatment, are formally called “qualified tuition programs.” These investment programs are designed to help pay for future...

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Target Date Funds: FAQs

What are target date or lifecycle funds? Target date funds, which are also called lifecycle funds, are designed to offer a convenient way to invest for a person expecting to retire around a particular date. A target date fund pursues a long-term investment strategy, using a mix of...

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Shareholder Response to Market Volatility: FAQs

Frequently Asked Questions About Shareholder Response to Market Volatility How do mutual fund shareholders respond to stock market volatility? Historically, mutual fund investors have reacted calmly and without panic in response to stock market volatility. The Investment Company...

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Municipal Bonds: FAQs

Frequently Asked Questions About Municipal Bonds What are municipal bonds? Municipal bonds (“muni bonds”) are debt securities issued by state and local governments, or their authorized agencies, to borrow or raise money for public purposes such as building schools, highways, or...