SEC YIELD Meaning and
Definition
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SEC yield is a financial term that refers to the standardized measure of yield of a mutual fund in the United States. The Securities and Exchange Commission (SEC) requires all mutual funds to calculate and disclose their SEC yield on a regular basis.
The SEC yield represents the annualized yield that an investor can expect to receive from a mutual fund investment over a specific period. It takes into account the fund's income dividends, as well as the potential impact of expenses and fees, creating a more accurate representation of the return on investment.
To calculate the SEC yield, the net investment income of the fund is divided by the average net asset value over a 30-day period, and this figure is then adjusted to reflect the effect of sales charges and redemption fees. The result is expressed as a percentage, indicating the yield percentage that an investor can expect to receive over the course of a year.
The SEC yield is particularly useful for investors who wish to compare the yields of different mutual funds accurately. It provides a standardized measure that allows for an apples-to-apples comparison, considering all associated costs. However, it is important to note that while the SEC yield is informative, it should not be the sole factor in deciding on an investment, as it does not take into account fluctuations in the fund’s share price or the potential risks involved.
Common Misspellings for SEC YIELD
- aec yield
- zec yield
- xec yield
- dec yield
- eec yield
- wec yield
- swc yield
- ssc yield
- sdc yield
- src yield
- s4c yield
- s3c yield
- sex yield
- sev yield
- sef yield
- sed yield
- sec tield
- sec gield
- sec hield
- sec uield
Etymology of SEC YIELD
The term "SEC yield" is an acronym that stands for "Securities and Exchange Commission yield". The Securities and Exchange Commission (SEC) is a regulatory agency in the United States that oversees various aspects of the financial industry, including securities offerings and investment management. So, the term "SEC yield" refers to a measure of yield or investment return that is in compliance with the SEC's guidelines and regulations. It is commonly used to calculate the yield on mutual funds and exchange-traded funds (ETFs).
