Invesco CEF Income Composite ETF
PCEF

$19.62

0.1%

Market Cap: $813M

0

Funds holding %

of 6,728 funds

–

Analysts bullish %

Fund manager confidence

Based on 2024 Q2 SEC filings by fund managers ($100M+ AUM)

1% less funds holding

Funds holding: 112 [Q1] → 111 (-1) [Q2]

5% less repeat investments, than reductions

Existing positions increased: 37 | Existing positions reduced: 39

7% less first-time investments, than exits

New positions opened: 13 | Existing positions closed: 14

5.81% less ownership

Funds ownership: 48.93% [Q1] → 43.12% (-5.81%) [Q2]

12% less capital invested

Capital invested by funds: $370M [Q1] → $327M (-$43.6M) [Q2]

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Research analyst outlook

We haven’t received any recent analyst ratings for PCEF.

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Financial journalist opinion

PCEF: Hefty Expenses And Value Erosion

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

ETFs Of Closed-End Funds: Unexpected Growth Opportunities

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

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

PCEF: For Those Who Like Closed-End Fund Yield

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: A Rally To Sell Into, Others Preferred

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

Passive Vs. Active ETFs Of CEFs

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

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

Consider Selling PCEF And Buying CEFS Instead

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

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

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

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