From our vantage point, ETFs are the better bet: they’re lower-cost, more transparent, tax efficient and flexible tools that have allowed millions of investors to reach their individual goals and create unique portfolios.
ETFs are also becoming more common in 401(k) plans, but CEFs are not.
You can also have the best of both worlds: PowerShares CEF Income Composite Portfolio (NYSEArca: PCEF) is an ETF that invests in CEFs.
For more information on investing for your retirement, visit our retirement category.
Max Chen contributed to this article.