SEC Yield

AAA

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."

INVESTOPEDIA EXPLAINS '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. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs ...
  2. Yield

    The income return on an investment. This refers to the interest ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Bond Fund

    A fund invested primarily in bonds and other debt instruments. ...
  5. Securities And Exchange Commission ...

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

    A measure of the non-collateralized, independent return of a ...
Related Articles
  1. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  2. Advanced Bond Concepts
    Bonds & Fixed Income

    Advanced Bond Concepts

  3. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

  4. Emerging Market Bond ETFs: Look Under ...
    Mutual Funds & ETFs

    Emerging Market Bond ETFs: Look Under ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center