Invesco CEF Income Composite ETF

PCEF tracks an index of three types of yield-focused closed-end funds: investment-grade fixed-income, high-yield fixed-income, and option-writing. Larger CEFs and those that trade at discount receive higher weights.

Saba Closed-End Funds ETF

Aptus Defined Risk ETF

Global X Russell 2000 Covered Call & Growth ETF

Google the words “passive income” with the title in an online search, and you'll get about 437,000 results.

5 Top ETFs to Buy For Huge Passive Income In November

The Invesco CEF Income Composite ETF holds 112 closed-end funds, mostly invested in U.S. stocks and bonds. Its total expense ratio is about 3% and its aggregate discount isn't very attractive. PCEF has suffered inflation-adjusted decay in both capital and income.

PCEF: Hefty Expenses And Value Erosion

The universe of ETFs of CEFs is small, but Invesco CEF Income Composite ETF has significantly more assets and a longer history than the rest. PCEF diversifies away some risk, but it is more concentrated among a few managers than the broader CEF universe. Indexing isn't always perfect, but indexed products like PCEF help reduce some of the risk behind security selection while following opportunities in the broader universe in unexpected areas like healthcare tech, science, and technology.

ETFs Of Closed-End Funds: Unexpected Growth Opportunities

For income-seeking investors, closed-end funds (CEFs) offer relatively high distributions and the potential to buy these shares at a discount to the fund's NAV. But these are lesser known fund structures.

ETFs of Closed-End Funds: Unexpected Growth Opportunities

Closed-end funds (CEFs) are an interesting investment option that maintain a constant share quantity and can be bought and sold on stock exchanges. The Invesco CEF Income Composite ETF is a fund-of-funds that diversifies its portfolio by investing in various CEFs. PCEF has a diverse set of holdings, with a near 50/50 split between stocks and bonds, and a current yield of about 9.59%.

PCEF: For Those Who Like Closed-End Fund Yield

Invesco CEF Income Composite ETF is based on the S-Network Composite Closed-End Fund Index and focuses on producing attractive yields. PCEF charges a high total expense ratio of about 3% due to fees of the underlying funds held. PCEF's performance has been disappointing with annualized returns of 6% over the long run, and there are better performing alternatives available at significant discounts to NAV.

Invesco CEF Income Composite ETF: A Rally To Sell Into, Others Preferred

Calamos CEF Income & Arbitrage ETF

First Trust Income Opportunity ETF

VanEck CEF Municipal Income ETF 

YieldShares High Income ETF

While ETFs are traditionally passive products, active opportunities in the broader ETF market have been growing significantly over the past few years. Active ETFs of CEFs have historically had lower distribution rates than their passive counterparts.

Passive Vs. Active ETFs Of CEFs

Closed-end funds (CEFs) are relatively under the radar compared to peers like exchange-traded funds (ETFs) and mutual funds. Closed-end funds are generally desirable for two reasons: 1) high income; and 2) premium/discount mechanism.

Passive vs. Active ETFs of CEFs

Invesco CEF Income Composite ETF offers diversified exposure to income-producing closed-end funds with a strong 10.1% yield. Saba Closed-End Funds ETF has a stronger performance track record, due to savvy investment decisions and activist campaigns, making it my preferred choice over PCEF. An overview of PCEF, and a comparison to CEFS, follows.

Consider Selling PCEF And Buying CEFS Instead

Invesco CEF Income Composite ETF is an "ETF of CEFs" that tracks a basket of income-focused closed-end funds. The fund offers a 10% yield through a monthly distribution. We see the macro backdrop as positive for this unique market segment going forward.

PCEF: A High-Yield Alternative Poised To Rally Into 2024

Alerian MLP ETF

UBS ETRACS Alerian MLP Infrastructure Index ETN Series B

Summary Higher interest rates have challenged many income investment categories this year, but yield will likely remain appealing to investors given broader market uncertainty. Among income investments, MLPs stand out for both generous yields relative to bonds and noticeable outperformance relative to the S&P 500 year-to-date.

MLPs Stand Out as Rising Rates Challenge Income Plays

iShares iBoxx High Yield Corporate Bond ETF

iShares Core U.S. REIT ETF

ETFs Of CEFs: Diversification And Higher Distributions

Closed-end funds typically appeal to a niche group of income investors. But when you package these into ETFs, you have the potential to do two things: 1) attract new investors and 2) create a core holding for CEF investors.

ETFs of CEFs: Diversification and Higher Distributions

Invesco CEF Income Composite ETF is a fund of funds with 114 holdings and a 12-month distribution yield of 9.97%. PCEF's performance has lagged behind its competitor CEFS and has experienced a downtrend in both price and distribution. PCEF may not be a good long-term investment for preserving income and capital, but it may be useful for tactical allocation and swing trading.

PCEF: History Tells Us It's Not A Safe Income Fund

The Invesco CEF Income Composite ETF (PCEF) is an aggregator of closed-end funds (CEFs) and has a high 30-day SEC yield of 8.85%. PCEF's performance is driven by the underlying funds' risk factors and their discounts to NAV, with a beta to risk-off events. The author believes the current market rally is unsustainable and recommends selling PCEF now to pick it up 15% lower later in the year.

PCEF: Is It A Good Time To Enter This CEF Aggregator? We Think Not

Closed-end funds are high-yield assets and as such, there's an element of interest rate sensitivity. That's particularly true with closed-end funds focusing on municipal debt.

Closed-End Funds Outlook Murky for Now, Brighter Ahead

VettaFi's Associate Director of Research, Roxanna Islam, joined the Active Investment Company Alliance's The NAVigator podcast and host Chuck Jaffe to talk ETFs, and specifically, buying closed-end funds in the ETF wrapper.

VettaFi's Islam Talks Closed-End Funds ETFs on The NAVigator Podcast

Many investors are unfamiliar with the closed-end fund structure or uncomfortable with their premium/discount volatility. There are only a few options for ETFs of CEFs, but they are all very different strategies and may appeal to different types of investors.

Earning Income Through ETFs Of CEFs

Closed-end funds are known for their high distribution rate and potential to provide current income. But many investors are unfamiliar with their structure or uncomfortable with their premium/discount volatility.

Earning Income Through ETFs of CEFs

PCEF: A 9% Yield ETF With A Concerning Track Record

iShares Core U.S. Aggregate Bond ETF

VanEck Fallen Angel High Yield Bond ETF

Invesco Senior Loan ETF

Invesco BulletShares 2025 Corporate Bond ETF

iShares Fallen Angels USD Bond ETF

iShares iBonds Dec 2025 Term Corporate ETF

Pimco Senior Loan Active Exchange-Traded Fund

 SPDR Blackstone Senior Loan ETF

BondBloxx BB-Rated USD High Yield Corporate Bond ETF

This week, the VettaFi Voices gathered around the water cooler to talk about fixed income.

VettaFi Voices on: What's Overlooked in Fixed Income

VanEck Vectors BDC Income ETF

Hoya Capital High Dividend Yield ETF

Asset prices have declined since early 2022. Lower asset prices have caused yields to rise. Some funds offer strong +8.0% yields, and strong dividend growth too.

3 ETFs With Strong, Sustainable, Growing Dividends For Aggressive Long-Term Investors

PCEF is a diversified fund of CEFs. PCEF provides investors with exposure to hundreds of income-producing CEFs, yields 8.4%, and has seen moderate dividend growth these past twelve months.

PCEF: Diversified Fund Of CEFs, Strong, Growing 8.4% Dividend Yield, Good Performance Track Record

Global X Russell 2000 Covered Call ETF

I mostly write about dividend-paying equity and bond ETFs, perfect for income investors and retirees. Some of these are offering particularly high yields right now, and seem well-positioned for 2023.

Juan's Top High Yield ETFs For 2023

With just one month left in 2022, now is an opportune time for investors to do some bargain hunting and tax-loss harvesting with beaten-down assets. When it comes to income-generating asset classes, closed-end funds are among the viable options for year-end considerations.

News for Invesco CEF Income Composite ETF ETF (PCEF)