Closed-end funds are getting battered as hikes in short-term interest rates are cutting down dividends and competition is crimping the closed-end style. The Wall Street Journal reports that the dividends, which were relatively higher than traditional mutual funds, have been dropping as short-term interest rates have been rising; the average dividend for a leveraged municipal-bond fund was 5.6% recently, compared with 6.3% in 2004. This, according to The WSJ, has prompted analysts to advise against investing in them now, especially since nearly half of the close-enders cut their dividends. Adding to the closed-end funds woes is competition from exchange-traded funds, which are more flexible instruments. The downturn for close-end funds, says Alexander Reiss of Ryan Beck & Co. in a Times interview, could offer a good buying opportunity. “Investing is about buying low and selling high,” Reiss reminds investors.