For investors looking to foster more income in their portfolios, closed-end fund (CEF) ETFs can be a strong option. Unlike open-end funds, closed-end funds won't need to repurchase shares from investors.
Calamos CEF Income & Arbitrage ETF offers high monthly income by investing in a diversified portfolio of income-producing closed-end funds. This fund-of-funds approach provides significant diversification in one investment, as the exposure ends up being spread across a diverse group of different assets and sectors. The ETF has a higher total expense ratio, primarily driven by the underlying CEF expenses; still, they've been able to deliver some solid results.
While many facets of fixed income have performed well recently, some headwinds are causing investor trepidation. One such headwind is relatively tight credit spreads.
Along with regular distributions, closed-end funds (CEFS) may offer investors many attractive benefits. For example, adept CEF managers may provide potential returns through leverage.
For investors seeking to maximize portfolio efficiency, choosing the right assets for the job is essential. And this is a decision point where a quality, focused ETF strategy can help.
Closed-end funds (CEFs) can be an integral contributor to portfolio returns, but it's important to understand how they work. A closed-end fund is a type of '40 Act fund that issues a fixed number of shares through a one-time IPO.
Investors looking to diversify their portfolio and achieve potential high yield may want to consider a closed-end fund ETF. This combines the advantages of closed-end funds (CEFs) with the tax efficiency of an ETF wrapper.
Income-seeking investors may often turn to closed-end funds (CEFs) as a diversified means to secure potential yield. Because closed-end funds only issue a fixed number of shares, investors can use them to access income from less-liquid market sectors.
Investors have long considered closed-end-fund (CEF) exposure due to their potential for higher returns. A good CEF can be a vital capital-appreciation workhorse within an investment portfolio.