“The return on an investment, expressed as a percentage of cost. Straight yield or current to yield is found by dividing the market price into the dividend rate in dollars (for stocks) or interest rate (for bonds). It ignores the factor of maturity or possible call at a higher price or...
Understanding Mutual Fund Yield Example of Fund Yield The SEC Yield Some High-Yielding Mutual Funds Does a Higher Yield Always Mean a Better Mutual Fund? Do Mutual Fund Yields Change over Time? Is the Yield on a Mutual Fund Guaranteed?
Passive investing:A more hands-off approach to investing. It’s meant to achieve long-term gains through a buy-and-hold strategy, such as purchasing shares of an ETF and hanging on to them. While passive investing may yield lower returns than active investing, it may be less risky and mor...
A long-term bond fund has greater potential than a short-term bond fund to generate high total returns when rates are falling, but its total return is more likely to decline when rates are rising. The most volatile bond funds, called high-yield funds, invest in low-rated bonds with the ...
For example, a fund specializing in high-yield junk bonds is much riskier than a fund that invests in government securities. Because there are many different types of bonds, bond funds can vary dramatically depending on where and when they invest, and all bond funds have interest rate risk. ...
To many investors, a “fund of funds” may seem like an over-the-top description of a hedge or mutual fund that’s performing well -- sort of like a “king of kings” label. Close, but no cigar. A fund of funds is simply a collection of funds rolled into one investment vehicle, ...
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mutual funds and other investments using a number of metrics. For starters, let’s take the yield on an investment, also known as the annual dividend yield, interest yield or bond yield. This is the rate of return generated by the fund’s dividends, interest and bond payments and is typic...
Hedge funds are similar tomutual fundsin that both investment vehicles pool money and are run by professional managers; however, mutual funds are heavily regulated by the SEC. One of the many differences is that hedge funds are allowed to pursue riskier strategies and investments. That increases ...