RiverNorth Active Income ETF (CEFZ)

Overview

The described investment strategy focuses on leveraging the price return version of the ISE High Income™ Index through a financial instrument issued by UBS AG, known as the Securities. These Securities represent a method of obtaining a twice leveraged long exposure to a carefully selected and ranked portfolio of 30 U.S. closed-end funds. The leveraging strategy aims to amplify the returns from the underlying index, but it also comes with an associated increase in risk, including the reduction of return by accrued fees. The instrument is classified as a senior unsecured debt, highlighting that in the event of issuer bankruptcy, holders of the Securities would be prioritized among creditors, though still behind secured debt holders.

Products and Services

• ISE High Income™ Index Exposure Securities

  This product offers investors a unique opportunity to gain leveraged exposure to the ISE High Income™ Index, which tracks the performance of top-performing U.S. closed-end funds. Through a monthly compounded two times leveraged long exposure, these Securities aim to amplify the potential returns from the underlying index. The target assets include a mix of high-income generating funds, selected based on specific criteria defined by the Index Sponsor. Investors should note the leveraging approach enhances both potential returns and associated risks, and the net performance is affected by accrued fees.