Examining types of fund structures

March 23, 2023

Discover the similarities and differences between closed-end mutual funds, interval funds and exchange-traded funds.

The dynamic nature of the investment industry encourages managers to continually assess products that meet investor preferences. Recent investor trends include the movement toward closed-end mutual funds, interval funds and exchange-traded funds (ETFs). Learn more about these types of fund structures and compare their characteristics. ­­­


Fund definitions

Closed-end mutual fund: Registered with the SEC, a closed-end fund generally issues a fixed number of shares that aren’t redeemable from the fund. They have similar compliance testing as open-end funds but are allowed to hold a greater percentage of illiquid securities in their investment portfolios.

Interval fund: A type of registered closed-end fund that doesn’t trade on the secondary market but whose shares may be continuously offered, up to a preset maximum amount, and are subject to periodic repurchase offers by the fund at a price based on net asset value.

Exchange-traded fund: An open-end fund registered under the 1940 and 1933 Acts that requires exemptive relief from various rules. Authorized Participants (AP) direct share activity on an exchange through creations and redemptions. Once the AP receives the ETF shares, the AP is free to sell the ETF shares in the secondary market to individual investors, institutions or market makers in the ETF.



Closed-end mutual fund: May be invested in equities, bonds and other securities with no limit on illiquid securities

Interval fund: Typically alternative strategies, investor assets are pooled into an investment portfolio. Interval funds can invest in illiquid assets as long as sufficient liquidity is maintained during redemption periods.

Exchange-traded fund: Typically represents a basket of securities designed to mirror a specific index (passive) or actively managed portfolio, daily disclosure typically required for portfolio holdings



Closed-end mutual fund: Traded in an open market with prices determined by supply and demand forces, traditionally transacted on an exchange

Interval fund: Subscriptions and redemptions limited to predetermined frequency transacted at NAV

Exchange-traded fund: Daily NAV with intra-day trading at market price


Tax reporting

Closed-end mutual fund: Typically taxed as RIC (1099) but could also be taxed as a corporation (1099) or partnership (K-1)

Interval fund: Typically taxed as RIC (1099) but could also be taxed as a corporation (1099) or partnership (K-1)

Exchange-traded fund: Typically taxed as RIC (1099) but could also be taxed as a corporation (1099) or partnership (K-1)


Sample investor markets

Closed-end mutual fund: Retail and institutional investors

Interval fund: Retail and institutional investors or through private offering to accredited investors

Exchange-traded fund: Retail and institutional investors


Whether you’re interested in closed-end mutual funds, ETFs, interval funds or others, visit us at usbank.com/globalfundservices to learn how we can help support your growth.

Related content

Webinar replay - The view from Europe: UCITS and ETFs in a changing world

The unsung heroes of exchange-traded funds

Key considerations for launching an ILP

Ask an expert Q&A: 3 US ETF trends and their impact in Europe

MSTs: An efficient and cost-effective solution for operating a mutual fund

Rethinking European ETFs: Strategy wrappers and a means to an end

What are exchange-traded funds?

Interval funds find growing popularity

A first look at the new fund of funds rule

Service provider due diligence and selection best practices

Inherent flexibility and other benefits of collective investment trusts

The reciprocal benefits of a custodial partnership: A case study

Depositary services: A brief overview

Administrator accountability: 5 questions to evaluate outsourcing risks

Emerging trends in Europe: An outlook from multiple perspectives

Complying with changes in fund regulations

Webinar: Approaching international payment strategies in today’s unpredictable markets.

How to fund your business without using 401(k) savings

Empowering managers with data automation and integration

Understanding the role of authorized participants in exchange-traded funds

An asset manager’s secret to saving time and money

Challenging market outlook reveals the power of partnership

Streamline operations with all-in-one small business financial support

Rule 18f-4: The limited use exception

3 European market trends to watch

How do interest rates affect investments?

Ask an expert Q&A: 3 US ETF trends and their impact in Europe


U.S. Bank Global Fund Services is a wholly owned subsidiary of U.S. Bank, N. A.

U.S. Bank Global Fund Services (Ireland) Limited is registered in Ireland, Company Number 413707. Registered Office at 24 - 26 City Quay, Dublin 2, Ireland. Directors: Eimear Cowhey, Ken Somerville, Brett Meili (USA), James Hutterer (USA), Hosni Shadid (USA). U.S. Bank Global Fund Services (Ireland) Limited is regulated by the Central Bank of Ireland.

U.S. Bank Global Fund Services (Guernsey) Limited is licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 2020, as amended, by the Guernsey Financial Services Commission to conduct controlled investment business in the Bailiwick of Guernsey.

U.S. Bank Global Fund Services (Luxembourg) S.a.r.l. is registered in Luxembourg with RCS number B238278 and Registered Office: Floor 3, K2 Ballade, 4, rue Albert Borschette, L 1246 Luxembourg . U.S. Bank Global Fund Services (Luxembourg) S.a.r.l. is authorised and regulated by the Commission de Surveillance du Secteur Financier.Investment products and services are:


U.S. Bank does not guarantee products, services or performance of its affiliates and third-party providers.

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.