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Can Closed-End ETFs go out of business?

April 26, 2017Business closed-end ETFs

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Can Closed-End ETFs go out of business?

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Because Closed-End ETFs are set up as investment companies, they are prohibited from engaging in any activity that is not of an investment nature. The only real way for a Closed-End ETF to go out of business is for all the securities in its portfolio to become worthless.