SEC Yield: Definition, Formula, Example

By Lyle Daly – Updated Feb 21, 2025 at 1:01 PM EST

Key Points

SEC yield helps compare returns on bond funds using a standardized, SEC-regulated formula.
It is calculated monthly and provides an estimate of expected annual returns.
Using SEC yield enhances decision-making by allowing accurate bond fund comparisons.

When comparing bond funds, SEC yield can help you see which funds are offering a greater return. Developed by the Securities and Exchange Commission, this calculation is important for bond investors to understand.

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A hand using a calculator on a desk filled with paperwork. — Image source: Getty Images.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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