SEC yield

SEC Yield

The yield on a bond fund calculated by a formula issued by the SEC. The SEC yield is calculated by taking the interest each share in the fund earns for a 30 day period and subtracting all expenses and sales charges the fund's managers assess. Each bond fund in the United States must publish its SEC yield. The SEC yield is used to compare the yields on different bond funds. It is also called the standardized yield.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

SEC yield.

SEC yield is the yield that a bond mutual fund must disclose in its advertising and other documents according to Securities and Exchange Commission (SEC) rules.

The rather complex calculation reports the annualized current net market yield, or the actual interest earned per share after fund expenses and any sales charges are subtracted, divided by the cost per share. The formula excludes any capital gains the fund may have realized.

SEC yield creates a level playing field for comparing bond fund investments because the amount you would have received in income distributions from each of the funds over a specific period is figured in the same way. This formula can't accurately predict future yields, though, in part because a bond fund portfolio typically changes all the time.

Money market funds must also report SEC yield, though the formula for that calculation is much simpler. In this case, it's what a fund would yield if it paid at the same rate over a full year what it paid in the previous month.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
NUBD is up just over 7% this year, performing inline with traditional aggregate bond benchmarks and has a 30-day SEC yield of 1.92%, which compared to 1.49% on 10-year Treasuries is pretty good.
HIIIX carries a 30-day SEC yield of 8.83% and has almost 30% of its assets concentrated in just five high-yield bonds, with debt from Advanced Micro Devices being among the group.
We discount the value of the SEC yield because very few of the securities in the fund will be held to maturity.
The $1.1 billion ANGL tracks the ICE BofAML US Fallen Angel High Yield Index and has a 30-day SEC yield of 5.31%, or more than triple the yield on 10-year Treasuries.
The SPDR Barclays High Yield Bond ETF (JNK) carries an SEC yield of 7.10% while the more conservative iShares iBoxx Investment Grade Bond ETF (LQD) is at 3.59%.
Listed in June 2008, the ETF has about $29 million in assets and has a 3.6% SEC yield.
It pays dividends semi-annually, a drawback for some, and its 30-day SEC yield is low at 2.96%.
The Invesco ETF has a 30-day SEC yield of 4.76%, or more than double what investors get on 10-year Treasuries, to the allure of the product is understandable for income-hungry investors.
" There is significant scope for the government to cut interest rate on small saving schemes as both the G- sec yields as well as the interest rate on fixed deposits have fallen around 2 per cent in the past two years.
10, 2016, letter to the editor ('Health sec yields to Congress blackmail') I alleged that current Health Secretary Paulyn Ubial was against the use of the dengue vaccine Dengvaxia, a product of Sanofi, a French multinational, but she was forced to endorse it by the House appropriations committee with the threat of a reduced budget.
He suggests that investors have the option of choosing from higher-yielding products like the Market Vectors Intermediate Municipal Bond Index ETF (ITM), or the Market Vectors High-Yield Municipal Bond Index ETF (HYD), which currently provide 30-day SEC yields of 3.38 percent and 5.79 percent, respectively.