SEC Yield

What is the 'SEC Yield'

The SEC yield is a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses. This is also referred to as the "standardized yield."

BREAKING DOWN 'SEC Yield'

The SEC yield is a good yield to use when you compare bond funds because it captures the effective rate of interest that an investor can receive in the future.

RELATED TERMS
  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Stripped Yield

    A measure of the non-collateralized, independent return of a ...
  4. Effective Annual Interest Rate

    Effective Annual Interest Rate is an investment's annual rate ...
  5. Bond Fund

    A fund invested primarily in bonds and other debt instruments. ...
  6. Yield

    The income return on an investment. This refers to the interest ...
Related Articles
  1. Mutual Funds & ETFs

    3 Infrastructure ETFs Worth Considering (IGF, NFRA)

    Discover the infrastructure asset class and why it may be a good addition to your portfolio, and learn about three unique infrastructure ETFs.
  2. Mutual Funds & ETFs

    2 Cybersecurity ETFs to Consider (CIBR, HACK)

    Consider these two cybersecurity ETFs. Cybercrime is among the the top five global risks, and the cybersecurity market is growing at double-digit rates.
  3. Mutual Funds & ETFs

    3 Best High-Yielding Global Bond Mutual Funds (GGBFX, PRSNX)

    Discover why global bond funds may be a great addition to your portfolio, and learn about three different high-yielding funds and their characteristics.
  4. Mutual Funds & ETFs

    3 Mutual Funds for Income-Hungry Gold ETF Investors (VWEHX, FRESX)

    Discover three high-yielding mutual funds that provide investors with the income they need in today's low-yield market environment.
  5. Mutual Funds & ETFs

    VWELX: Vanguard Wellington Fund Top 5 Holdings Analysis

    Explore an overview of the Vanguard Wellington Fund, and learn about its top five holdings, which are Wells Fargo, Alphabet, Microsoft, Merck and JPMorgan.
  6. Mutual Funds & ETFs

    VGENX: Vanguard Energy Fund Top 5 Holdings Analysis

    Discover an analysis of the top five holdings in the Vanguard Energy Fund Investor Shares, and learn about their characteristics and year-to-date performance.
  7. Mutual Funds & ETFs

    XLI vs. VINAX: ETF vs. Mutual Fund Case Study

    Explore the similarities and differences between the holdings, pricing, returns and structure of VINAX and XLI. What factors make each more or less suitable?
  8. Mutual Funds & ETFs

    VIMSX vs. MDY: Mutual Fund vs. ETF Case Study

    Explore the similarities and differences between VIMSX and MDY. Compare and contrast the structure, holdings, performance and strategy of each fund.
  9. Mutual Funds & ETFs

    3 Best High-Yielding Intermediate Government Bond ETFs (MBSD, VGIT)

    Discover three exchange-traded funds that invest in U.S. government and agency fixed-income securities, and that have high12-month distribution yields.
  10. Mutual Funds & ETFs

    VDIGX Vs. VEIPX: Comparing Two Vanguard Dividend Funds

    Learn about Vanguard Equity Income Fund Investor Shares and Vanguard Dividend Growth Fund, and the main differences between these two top-performing funds.
RELATED FAQS
  1. Do Vanguard ETFs pay dividends?

    Learn about Vanguard exchange-traded funds (ETFs) and how most of them typically have low expense ratios and pay dividends ... Read Answer >>
  2. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) ... Read Answer >>
  3. What is a good debt ratio, and what is a bad debt ratio?

    Learn about the factors that influence how investors and lenders evaluate the debt ratio for a company and why the answer ... Read Answer >>
  4. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  5. What is a basis point (BPS)?

    A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial ... Read Answer >>
  6. What is the Writ of Mandamus?

    Learn how the powerful, but rarely used, court-ordered writs of mandamus can end an injustice and force someone, or a public ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center