Leverage: A closed-end fund’s unique ability

Leverage, the ability of closed-end funds to issue debt or raise money through the sale of preferred shares, is a unique feature of closed-end funds. Fund managers are able to use leverage in order to try and potentially enhance the fund's return, income or both.

DH: US-170920-129340-1


The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested.