Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Open/closed-ended investment definition

In investments, the terms open-ended and closed-ended are used to designate whether a fund has an open or fixed number of shares in circulation.

A closed-ended investment has a fixed number of shares in circulation. As a result, demand and supply factors can mean that the price of the closed-ended investment varies from the value of its underlying assets (called net asset value, or NAV).

An open-ended investment, on the other hand, does not have a fixed number of shares in circulation. That means that there is less chance of supply and demand impacting its price.

Most exchange traded funds (ETFs) are open-ended investments, and thanks to authorised participants and intraday NAV calculations (INAV), an ETF is likely to trade very closely to the value of its underlying assets.

Learn more about ETFs

Find accumulated distribution ETFs using our ETF screener or learn more about ETF trading with IG.

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The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.

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