Liquidating a mutual fund
If you stick with the largest ETFs that track broad market gauges (like the S&P 500) or major asset classes (like bonds), you may never encounter a fund closure.But, if you get more creative when shopping for ETFs, you could get burned."It's not a very large group of actively managed funds out there in this style," he said."Perhaps fewer investors are looking for a dedicated convertible slice." Ms.
Last year, the fund declined by 2.72%, while the category lost 2.02%.
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The trillion asset manager announced Thursday that it will liquidate the Vanguard Convertible Securities Fund (VCVSX).
The 2 million mutual fund "has not gained broad acceptance among targeted investors," a company spokeswoman said.
At nearly $1 billion, the hybrid fund that converts bonds to stocks will go the way of the buggy whip and white tennis balls.