FAQ Content

Frequently Asked Questions About Closed-End Funds and Their Use of Leverage This document contains FAQs about CEFs, including information related to failed auctions for auction market preferred stock. General Information About Closed-End Funds • What are closed-end funds (CEFs)? • In...

Frequently Asked Questions About ETFs and Retail Investors Why do investors use ETFs? What factors should an investor consider when selecting an ETF? What kinds of risks come with ETF investing? Where can investors get information on ETFs? Where can investors get data to compare ETFs...

Frequently Asked Questions About How ETFs Compare with Other Investments How are ETFs similar to mutual funds? How are ETFs different from mutual funds? How large are ETF net assets relative to all assets managed by mutual funds and other investment companies? Are ETFs regulated in...

Frequently Asked Questions About the US ETF Market How many Americans own ETFs? How many US ETF providers are there? How big is the US ETF market? Where are assets of ETFs concentrated? What are recent trends in demand for ETFs? How many Americans own ETFs? An estimated 16.9 million...

Frequently Asked Questions About ETF Basics and Structure What is an ETF? What is an AP? What kind of investments can investors make through ETFs? What is the history of ETFs? How do ETFs work toward their investment objective? How are ETFs created? How are ETFs redeemed? How can an...

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...

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...

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...

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...