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Latin American Discovery Fund Inc

Historically, the trading volume of Closed-End Fund Foreign (CEFs) has been lower than that of exchange-traded funds (ETFs), which are more popular among investors due to their tax efficiency, flexibility, and low costs. In contrast, CEFs are less tax-efficient and often have higher fees compared to ETFs.

Closed-end funds (CEFs) have fundamental risks, including, but not limited to, interest rate, credit quality, liquidity, portfolio management, and market and loan. Due to their fee structures and large expenses, these funds may perform poorly by earning a return that is lower than their expense ratio.

Closed-end funds are subject to interest-rate risk. When interest rates rise, bond prices decline, and likewise, when interest rates fall, bond prices increase. CEFs may also experience credit risk, which occurs when the underlying bonds are downgraded or default. Many CEFs use leverage, which magnifies losses when interest rates rise or credit spreads widen.

Closed-end funds (CEFs) have fundamental risks, including, but not limited to, interest rate, credit quality, liquidity, portfolio management, and market and loan. Due to their fee structures and large expenses, these funds may perform poorly by earning a return that is lower than their expense ratio.