SEC Yield

DEFINITION of 'SEC Yield'

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.

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